Apple has reached a significant settlement with Brazilian antitrust authorities, marking a pivotal shift in its longstanding App Store policies within the South American market. Following a multi-year investigation by Brazil’s Administrative Council of Economic Defense (CADE), the tech giant has agreed to implement a series of concessions designed to foster greater competition. The agreement, which was first detailed by Brazilian technology publication tecnoblog, mandates the allowance of third-party app stores and alternative payment processors on Apple devices sold in the country. This development represents a substantial challenge to Apple’s traditional “walled garden” approach and aligns with a growing global trend of regulatory intervention aimed at curbing the market dominance of major digital platforms.
Key Provisions of the Brazilian Settlement
The settlement introduces several foundational changes to Apple’s operational framework in Brazil. Most notably, it compels Apple to permit the installation of third-party app marketplaces on iPhones and iPads, a practice historically prohibited under iOS’s security guidelines. While Apple retains the right to display security warnings to users before installation, these notifications must be presented in a neutral and objective manner. Furthermore, the agreement dismantles key aspects of Apple’s “anti-steering” rules, which previously prevented developers from directing users to payment methods outside the App Store. Developers are now required to be allowed to include links and buttons within their apps that lead to external websites for completing transactions, with these alternative payment options mandated to be displayed alongside Apple’s own system.
A New, Multi-Tiered Fee Structure
Accompanying these policy changes is a complex new fee model that bears a strong resemblance to the structure Apple recently adopted in the European Union. The commission rates are now directly tied to the payment method and distribution channel used. For transactions processed through the App Store using Apple’s proprietary payment system, the standard commission of 10 to 20 percent will continue to apply, with an additional 5 percent transaction fee. However, if a developer directs a user to an external payment processor using a simple text link, Apple will levy no commission whatsoever. If the external payment option is presented via a clickable link or button, Apple will apply a reduced commission of 15 percent. Crucially, Apple will also impose a new “Core Technology Fee” of 5 percent on all app downloads originating from third-party app stores, ostensibly to cover the cost of platform access and development tools.
Compliance Timeline and Enforcement Mechanisms
The settlement imposes a strict 105-day deadline for Apple to fully implement all required changes within the Brazilian market. Failure to comply with the terms of the agreement within this timeframe will expose the company to substantial financial penalties. CADE has the authority to impose fines of up to $27 million for violations, ensuring there is significant financial impetus for Apple to adhere to the new regulations. This enforcement mechanism underscores the seriousness with which Brazilian regulators are treating the case and their commitment to reshaping the digital marketplace to encourage competition.
Global Context and Broader Implications
The Brazilian agreement is not an isolated incident but part of a mounting global regulatory offensive against Apple’s business practices. The settlement’s structure closely mirrors the concessions Apple was forced to make in the European Union following the passage of the landmark Digital Markets Act (DMA). Notably, Apple was recently fined approximately $587 million by the EU for non-compliance with the DMA’s provisions, a penalty the company is currently appealing. Simultaneously, in the United States, Apple remains entangled in a high-profile legal battle with Epic Games, the developer of *Fortnite*, over commissions on purchases made through third-party payment platforms. The Brazilian settlement thus reinforces an emerging international template for regulating app store ecosystems, focusing on interoperability, payment choice, and reduced platform fees.
The settlement between Apple and Brazilian regulators signifies a landmark moment in the ongoing redefinition of digital market power. By compelling Apple to open its iOS platform to third-party app stores and payment systems, CADE has taken a decisive step toward dismantling the company’s gatekeeper role. The nuanced fee structure attempts to balance Apple’s legitimate claims to intellectual property compensation with the urgent need for competitive fairness. As similar regulatory actions progress in Europe, the United States, and other jurisdictions, the Brazilian model may serve as a influential precedent. This case vividly illustrates the increasing willingness of national regulators to impose structural changes on global technology giants, fundamentally altering the economics and architecture of the app distribution landscape.
