TL;DR
Brazil’s competition regulator CADE approved a settlement that requires Apple to let iOS devices run third‑party app stores and permit external payment systems. Apple must implement the changes within 105 days and can still charge various fees; failure to comply risks a fine.
What happened
Brazil’s competition authority (CADE) has accepted a Term of Commitment to Termination (TCC) from Apple that obliges the company to permit third‑party app stores on iOS in Brazil and allow developers to use external payment systems. The agreement also requires any warnings about alternative stores or outside payments to use neutral language. A Brazilian outlet (Tecnoblog) published a machine translation of CADE’s breakdown of fees that Apple may retain for different transaction types, including commissions for App Store purchases, fees tied to Apple’s payment system, and a small charge for alternative stores labelled a Core Technology Commission. Apple warned the changes could introduce new privacy and security risks but said it will keep safeguards, especially for younger users. The company has 105 days to implement the commitments; noncompliance could lead to a penalty of up to R$150 million (about $27 million).
Why it matters
- iOS users in Brazil will be able to install and use alternative app stores, changing how apps are discovered and distributed.
- Developers can offer external payment options, altering the flow of in‑app transactions and revenue routing.
- Apple’s move follows regulatory actions in Europe and Japan, marking continued global pressure on platform app‑store models.
- Apple warns of increased privacy and security risks, highlighting a tradeoff between openness and platform safeguards.
- Apple will still collect fees under the TCC, so the financial dynamics between Apple, developers, and alternative stores remain structured.
Key facts
- CADE approved a Term of Commitment to Termination (TCC) submitted by Apple requiring support for third‑party app stores and external payment systems.
- Warnings about third‑party stores and external payments must use neutral wording under the TCC.
- Reported fee breakdown (via Tecnoblog machine translation of CADE): App Store purchases — 25% commission general, 10% for special programs.
- Reported fees: a 5% fee applies if the app uses Apple’s payment system (according to the reported breakdown).
- App purchases routed outside the App Store: no fee if routing is static text (no clickable link/button); 15% fee if an app provides a button/link directing to payment on its own website.
- Alternative stores would be subject to a 5% 'Core Technology Commission' per the reported breakdown.
- Apple has 105 days from the agreement to implement the changes in Brazil.
- If Apple does not comply, it could face fines up to R$150 million (approximately $27 million).
- Apple stated the changes will raise privacy and security risks but said it will preserve certain protections, including for younger users.
What to watch next
- Deadline and timeline: Apple must deliver the required changes within 105 days — watch for filings or product updates within that window.
- Enforcement and penalties: whether CADE applies fines or other measures if Apple misses obligations (not confirmed in the source).
- Approval and vetting process for third‑party stores on iOS in Brazil, and how Apple will technically enable them (not confirmed in the source).
Quick glossary
- CADE: Brazil’s Administrative Council for Economic Defense, the federal body that enforces competition law and reviews antitrust commitments.
- Third‑party app store: An application marketplace not operated by the device maker where users can browse, download, and update apps.
- External payment system: A payment method or gateway used outside a platform’s built‑in in‑app purchase system to process transactions.
- Term of Commitment to Termination (TCC): A legal agreement or settlement submitted to a regulator that sets conditions a company must meet to resolve an investigation or dispute.
- Commission / fee: A percentage or fixed charge retained by a platform or service provider for facilitating purchases or distribution.
Reader FAQ
Will Apple allow third‑party app stores on iPhones in Brazil?
Yes — CADE accepted a TCC that requires Apple to permit third‑party app stores on iOS in Brazil.
Will Apple still collect fees on app sales and payments?
Yes — the reported breakdown shows Apple retaining commissions for App Store purchases and varying fees tied to payment routing and alternative stores.
When must these changes take effect?
Apple has 105 days to implement the changes under the agreement.
Does this mean iOS will be less secure in Brazil?
Apple warned the changes could introduce new privacy and security risks but said it will maintain safeguards; further technical details are not confirmed in the source.
NEWS TECH APPLE Apple is going to allow third-party app stores in Brazil, too Following Europe and Japan, Apple is opening things up for iOS users in Brazil. by Jay…
Sources
- Apple is going to allow third-party app stores in Brazil, too
- Apple to allow third-party app stores in Brazil to settle iOS …
- Apple to Allow Alternative App Stores and More on iOS in …
- Apple will allow third-party app stores on iOS in Brazil after …
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