TL;DR

Apple and Brazil’s competition authority CADE have agreed to a settlement that requires changes to App Store rules in Brazil, including allowing alternative app distribution and external payment links. Apple has up to 105 days to implement the measures and faces fines for noncompliance; a leaked fee schedule was later reported by a Brazilian outlet.

What happened

The Conselho Administrativo de Defesa Econômica (CADE) approved a Term of Commitment to Cease (TCC) with Apple after a multi-year dispute that began with a 2022 complaint from MercadoLibre about App Store restrictions. Under the settlement, Apple must permit alternative app distribution channels in Brazil, allow developers to include links to external payment options, and permit third-party payment methods to be offered alongside Apple’s in-app purchase system. User-facing notices about those choices must be presented neutrally and must not introduce controls that degrade the user experience. The company has up to 105 days to put the changes into effect; failure to comply could trigger fines up to R$150 million and potential reopening of the investigation. Apple cautioned the changes could increase privacy and security risks, while saying it would keep some protections for younger users. Separately, Brazilian site Tecnoblog reported a draft fee schedule for Brazil obtained from CADE.

Why it matters

  • Brazilian users will be able to install apps outside Apple’s App Store and access external payment options, changing how the iOS ecosystem operates in the country.
  • Developers in Brazil may gain more flexibility over distribution and payment methods, potentially affecting revenue splits and pricing strategies.
  • The settlement introduces a trade-off between expanded choice and the security and privacy posture Apple says it maintains on iOS.
  • CADE’s enforcement and the 105-day compliance window create a near-term timeline that could influence how other regulators and markets negotiate with Apple.

Key facts

  • The dispute began in 2022 when MercadoLibre filed a complaint with CADE about App Store rules and mandatory use of Apple’s in-app payment system.
  • CADE approved Apple’s Term of Commitment to Cease (TCC) as a settlement mechanism to resolve the administrative process.
  • Apple must allow alternative app distribution channels (sideloading) in Brazil and permit developers to link to external payment options.
  • Third-party payment methods may be offered alongside Apple’s in-app purchases; user notices about options must be neutral and objective.
  • Apple has up to 105 days to implement the agreed changes after the TCC approval.
  • Noncompliance could lead to fines up to R$150 million (about $27.1 million) and the possible reopening of the investigation.
  • Apple warned the changes could introduce new privacy and security risks but said it will preserve certain safeguards for younger users.
  • Tecnoblog reported a leaked fee structure from CADE that outlines commissions and fees for in-app purchases, app redirections, and alternative app stores.

What to watch next

  • Final, official fee and commission schedule as announced by CADE or Apple (Tecnoblog published a draft but Apple has not finalized public terms).
  • How Apple will technically implement alternative app distribution and what security controls, if any, will accompany sideloading.
  • Enforcement actions during the 105-day compliance window and whether CADE imposes fines or reopens the investigation if terms are not met.

Quick glossary

  • CADE: Brazil’s administrative council for economic defense, the national competition authority that enforces antitrust and competition rules.
  • Sideloading: Installing an app on a device from a source other than the platform’s official app store.
  • In-app purchases (IAP): Digital goods or services sold from within an app using the platform’s payment mechanism.
  • Term of Commitment to Cease (TCC): A settlement tool used by Brazilian authorities allowing a company to commit to remedies that end an administrative investigation.

Reader FAQ

When will the App Store changes take effect in Brazil?
The settlement gives Apple up to 105 days to implement the agreed changes.

Will Apple be fined if it doesn’t comply?
CADE may impose fines up to R$150 million and could reopen the investigation for noncompliance.

What are the new fee levels?
Tecnoblog reported a draft fee schedule from CADE with rates for in-app purchases, redirected purchases and alternative app stores; Apple has not publicly finalized or confirmed the official terms.

Does this settlement apply outside Brazil?
not confirmed in the source

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Sources

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