Brazil’s Antitrust Watchdog Takes Aim at Apple’s App Store Rules

LinkedIn
Twitter
Facebook
Telegram
WhatsApp
Email
Apple App Store
Apple App Store

Brazil’s antitrust regulator, CADE, has dealt a significant blow to Apple, recommending a ruling against the tech giant for anti-competitive practices within its iOS ecosystem. The agency’s technical body concluded that Apple unfairly restricts competition, a move that could have major implications for the App Store in one of its key markets.

The investigation began in 2022 after firms, including the Latin American e-commerce powerhouse MercadoLibre, filed complaints. They argued that Apple abuses its market position by forcing developers to use its proprietary payment system for all in-app purchases, effectively locking out rivals and controlling the flow of digital goods.

In its recommendation on Monday, CADE’s team called for an unspecified fine and, more importantly, demanded that Apple dismantle these restrictive policies. The case will now proceed to an internal panel at CADE, which will make the final, binding decision.

Apple pushed back against the recommendation, stating that the proposed changes would compromise user experience and create significant privacy and security risks.

The company affirmed its commitment to continue dialogue with the regulator. However, with CADE having already imposed preventive measures against Apple last year, the pressure is mounting on the iPhone maker to change its ways in Brazil.