20 days to open the App Store to competition in Brazil ⏳

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Under pressure in Brazil, Apple is being forced to adjust the rules governing its App Store. Faced with legal orders and financial threats, the American tech giant must comply with demands that could redefine its business model in the country.

An ultimatum for Apple in Brazil ⚖️

The Administrative Council for Economic Defense (Cade), Brazil’s competition authority, has issued an ultimatum to Apple. Users should feel free to navigate without incurring additional costs. The company now has 20 days to:

• Open access to alternative payment systems within iOS apps, allowing users to bypass the high commissions Apple charges.
• Allow developers to communicate freely with their users about offers available outside the App Store.

This decision stems from an investigation launched in 2022 following a complaint by MercadoLibre, the leading e-commerce platform in Latin America.

Financial risks 💸

If Apple fails to meet the requirements within the given time frame, Cade has announced a penalty: a fine of 250,000 reals (approximately €41,000) for each day of non-compliance.

• A real threat: Prolonged non-compliance could result in millions of euros in fines.
• A worrying precedent: This action mirrors similar challenges Apple is facing in Europe and the United States, where penalties are increasingly common.

For Apple, the challenge lies in balancing these demands while protecting its business model.

A technical challenge despite existing solutions 🛠️

While Cupertino has the tools needed to implement these changes—tools already used to comply with European regulations—their rollout in Brazil poses unique challenges.

• Local adaptation: Legal frameworks differ from market to market, complicating the swift integration of new options.
• Global impact: Brazil’s decisions could influence other emerging markets seeking fair regulations.

Still, Apple has shown in other regions that compliance is possible, even if it often comes reluctantly.

This ruling originates from a complaint filed in 2022 by MercadoLibre, which accused Apple of restricting in-app payments and imposing excessive commissions. These practices, it argued, stifle local innovation and increase costs for South American developers.

A strong signal for global competition 🌍

Brazil’s decision seeks to curb monopolistic practices by major tech companies. In Europe, for example, the Digital Markets Act imposes similar rules to Cade’s, forcing Apple to open up its ecosystem. Meanwhile, several investigations are underway in the United States to reduce the influence of digital giants, including their control over integrated payments. In Asia, mobile app regulations are emerging in markets like India and South Korea.

These global pressures could force Apple to rethink its closed ecosystem-based business model.

What about you? Do you think this Brazilian decision marks the beginning of a new era for balance in the global tech industry?