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Brazil’s Antitrust Regulator Orders Apple to Lift Restrictions on In-App Payment Methods

By  |  November 26, 2024

Brazil’s antitrust watchdog, Cade, has directed Apple to remove restrictions on payment methods for in-app purchases, following an investigation sparked by a complaint from Latin American eCommerce giant MercadoLibre. According to Reuters, the regulator’s decision marks a significant move in the ongoing inquiry into Apple’s business practices in the region.

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    The investigation, which was initiated after MercadoLibre filed complaints in 2022 in both Brazil and Mexico, accuses Apple of imposing severe limitations on the distribution of digital goods and services within apps. Specifically, MercadoLibre’s complaint claims that Apple prohibited developers from offering third-party digital goods, such as movies, music, video games, and books. Additionally, Apple allegedly forced developers to use its own payment system, preventing them from directing users to external websites for purchases.

    Read more: India’s Antitrust Body Rejects Apple’s Plea to Halt Investigation Report

    In its ruling, Cade ordered Apple to allow developers to implement tools that would enable customers to make purchases outside the app, including the use of hyperlinks to external websites. Moreover, Apple must permit developers to offer alternative in-app payment processing options, beyond the payment system operated by Apple itself.

    The company has been given 20 days to comply with the regulatory demands, per Reuters. If Apple fails to adhere to these measures, Cade will impose a daily fine of 250,000 reais (roughly $43,000).

    Apple has declined to comment on the ruling, while MercadoLibre did not provide a statement outside of normal business hours.

    Source: Reuters