Open App Store or face fines: Brazil's ultimatum to Apple
Brazil's antitrust regulator, Conselho Administrativo de Defesa Economica (CADE), has sent a stern warning to Apple. The tech giant has been given a 20-day deadline to implement changes allowing purchases from third-party app developers without using Apple's platform. If the company fails to comply, it could face a daily fine of BRL 250,000 ($43,000).
CADE demands more transparency and flexibility
CADE's directive also mandates Apple to be more transparent and flexible with third-party developers. The regulator wants developers to have the freedom to inform users about alternative purchasing options for their products or services. This includes incorporating buttons, external links, and other prompts indicating different access points to their offerings, not just within the app.
Ruling follows e-commerce company's complaint against Apple
The ruling was issued in response to a complaint lodged in 2022 by e-commerce giant MercadoLibre. The company alleged that Apple restricted goods distribution and purchase methods. This isn't the first time Apple has encountered such hurdles. Earlier this year, the European Union's Digital Markets Act forced it to allow developers to accept payments and distribute apps outside its App Store.
CADE demands alternative in-app payment options
Along with these changes, CADE has also demanded Apple to allow app developers to integrate tools for customers to buy their products/services outside the app. The regulator also insists on providing other in-app payment processing options apart from Apple's own system. This move marks a significant shift toward more open and competitive digital marketplaces.
