Apple Opens Doors to Rival Stores in Brazil

Apple is set to allow other app stores in its iOS system in Brazil following a three-year case with antitrust regulator CADE. The agreement also introduces third-party payment processing for in-app purchases. This settlement comes after a complaint by MercadoLibre over restricted digital goods distribution.

In a landmark decision, Apple has agreed to allow alternative app stores and third-party payment systems in its iOS operating system in Brazil. This decision is part of a settlement with the country's antitrust regulator, CADE, resolving a three-year dispute between the parties. CADE's internal panel has accepted Apple's proposal, creating a significant shift in the app distribution landscape.

The agreement stipulates that Apple will implement these changes to address the Brazilian regulator's demands, although the company has expressed concerns over potential privacy and security risks for users. The situation arose from a 2022 complaint by MercadoLibre, a major e-commerce platform from Uruguay, which highlighted Apple's restrictive policies on digital goods distribution and in-app purchases.

The agreement requires Apple to make the changes within 105 days and offers a three-year duration for the new terms to apply to app developers. In case of non-compliance, Apple is liable to pay up to 150 million reais. MercadoLibre acknowledges CADE's efforts but emphasizes the need for more balanced rules to effectively address competitive challenges within the market.

(With inputs from agencies.)