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App StoreAppleBusinessTech

Apple has 20 days to open in-app purchases to third-party systems in Brazil

Brazil demands third-party payment access in apps. Apple must act within 20 days or face steep fines.

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...
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- Editor-in-Chief
Nov 28, 2024, 2:50 AM EST
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The image is a vibrant, futuristic illustration featuring various Apple app icons floating in a tunnel-like environment. The icons include the App Store, Podcasts, Music, Apple TV, News+, and others, all depicted in shades of blue, green, and white. The tunnel has a dynamic, flowing design with ribbons of color weaving through the scene, and there are five yellow stars on the right side, suggesting ratings or reviews. The overall aesthetic is modern and digital, emphasizing the interconnectedness and variety of apps available in a digital ecosystem.
Image: Apple
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Brazil’s antitrust regulator, Cade, has given Apple 20 days to comply with a ruling that could lead to hefty daily fines, reports Reuters. If Apple fails to meet the deadline, it faces penalties of 250,000 Brazilian reais (approximately $43,000) per day. The ruling, which stems from a complaint lodged by the Latin American e-commerce giant MercadoLibre, mandates that Apple open its platform to more flexible in-app payment options.

MercadoLibre’s 2022 complaint against Apple, filed both in Brazil and Mexico, accused the tech giant of imposing strict limitations on app developers. Specifically, Apple was criticized for requiring that developers use its proprietary payment system for in-app purchases and for preventing users from being redirected to external payment systems. This arrangement, the complaint argued, created an unfair advantage for Apple and stifled competition.

In response, Cade has instructed Apple to allow app developers to include links or other tools that enable users to purchase digital goods and services through third-party platforms, bypassing Apple’s own payment system. Additionally, the ruling demands that Apple provide developers with the option to use alternative payment processing methods within their apps.

This decision highlights a broader global trend of antitrust regulators challenging the app store practices of major tech companies, including Apple, which has faced similar scrutiny in the European Union and Japan. The fine could escalate if Apple doesn’t act swiftly, and the outcome of this case will likely influence similar legal battles in other countries.


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