Apple and Brazil’s competition authority, CADE, have reached a settlement in a three-year antitrust dispute, a decision announced Tuesday that will reshape the iOS ecosystem within the country. The agreement compels Apple to open its platform to option app stores and payment systems, responding to concerns over anti-competitive practices initially raised by MercadoLibre in 2022 [[1]]. While CADE approved the settlement, the changes-which must be implemented within 105 days-are subject to a three-year monitoring period and potential penalties of up to $27.09 million USD for non-compliance [[1]].
Apple will allow app developers in Brazil to use alternative app stores and payment systems, settling a three-year antitrust dispute with the country’s competition regulator, CADE. Both parties announced the agreement on Tuesday.
A committee within CADE reached a majority decision to accept Apple’s proposed settlement, according to a statement released by the regulator.
Beyond allowing third-party app stores, the agreement requires Apple to permit third-party payment methods for in-app purchases, in addition to its own, or provide links to external websites for completing transactions. This move aims to increase competition within Apple’s tightly controlled ecosystem.
Apple stated it will implement the necessary changes to comply with CADE’s requirements, but cautioned that these measures could introduce risks to user privacy and security.
“Apple has strived to maintain protections against certain threats, but these protections will not eliminate all risks,” the company said in a statement. The investigation began following a complaint filed in 2022 by Uruguay-based e-commerce platform MercadoLibre.
MELI.O alleged that Apple imposed restrictions on the distribution of digital goods and in-app purchases. CADE subsequently issued preventative measures against Apple in 2024, and earlier this year, its technical arm recommended a decision against the American company, referring the case to the regulator’s internal panel for a final ruling.
MercadoLibre acknowledged CADE’s efforts “to address the competitive challenges” presented by iOS and Apple’s App Store in Brazil, but added that the agreement “only partially addresses the need for more balanced rules.”
The agreement between CADE and Apple will be in effect for three years, starting when the new conditions become mandatory for app developers, CADE stated. Apple has 105 days to implement the agreed-upon changes.
CADE noted that Apple could face a penalty of up to 150 million reais (approximately $27.09 million USD) for any full breach of the agreement. Apple has also agreed to drop a lawsuit it filed against CADE’s 2024 preventative measures.
(1 $ = 5.5375 reais)
