Brazil’s antitrust body orders Apple to lift in-app payment restrictions

Brazil’s Administrative Council for Economic Defense (CADE) has ordered Apple to lift restrictions on in-app payments, a move that could significantly impact the company’s business model in the country. The decision, announced, follows an investigation launched in 2021 into allegations that Apple’s App Store policies were anti-competitive.

CADE found that Apple’s requirement for developers to use its in-app payment system, which charges a 30% commission, hindered competition and harmed consumers. The regulator argued that Apple’s practices limited consumer choice and stifled innovation.

“Apple’s conduct has restricted competition, harmed consumers, and hindered innovation in the app market,” said, the head of CADE. “This decision aims to promote fair competition and protect consumer rights.”

In response to the ruling, Apple expressed disappointment and stated that it would review the decision carefully. The company has maintained that its App Store policies are designed to protect user privacy and security.

“We are disappointed with the decision and believe it misunderstands the significant contributions of the App Store to Brazil’s economy,” said an Apple spokesperson. “We will continue to work with regulators to explain how our practices benefit both developers and consumers.”

The CADE decision could have far-reaching implications for Apple’s business model globally. It could embolden other regulators to take similar actions against the tech giant. In recent years, Apple has faced increasing scrutiny from antitrust authorities around the world, including the European Union and the United States.

The ruling is a major victory for app developers in Brazil, who have long complained about Apple’s high commission fees. It could lead to lower prices for consumers and increased competition in the app market.

However, some analysts have raised concerns that the decision could have unintended consequences. They argue that it could weaken Apple’s ability to invest in the App Store and protect user privacy.

The CADE decision is a significant development in the ongoing global debate over the power of tech giants and the regulation of digital markets. It highlights the increasing scrutiny that Apple and other tech companies are facing from regulators around the world.

As the digital economy continues to grow, it is likely that we will see more regulatory challenges for tech companies. The CADE decision could set a precedent for other countries to follow, potentially leading to a more competitive and consumer-friendly app market.