Apple has been ordered by Brazil’s Cade to allow external links for in-app purchases within 20 days, or face $43,000 daily fines. This mandate follows a complaint from Mercado Libre and signifies a pattern of regulatory actions against Apple’s restrictive practices internationally.
Brazil’s antitrust authority, Cade, has mandated that Apple must eliminate restrictions on in-app purchases within 20 days, as reported by Reuters. Should Apple fail to comply with this directive, the company risks incurring daily fines amounting to $43,000. This ruling follows a complaint lodged by the e-commerce entity, Mercado Libre, in 2022. Notably, the Brazilian regulator has highlighted that app developers should be able to link to external sites for subscriptions or independently manage their payment processes. In a broader context, this decision signifies the growing pressures on Apple’s traditional operating model as similar regulations emerge globally, including in the U.S., Europe, Japan, and South Korea, where Apple has begun enabling third-party payment methods. However, many regulatory challenges remain as critics argue that Apple’s adjustments do not sufficiently address competitive fairness.
The recent ruling from Brazil’s Cade is part of a larger trend of antitrust scrutiny faced by major tech companies, particularly Apple, regarding their payment systems within applications. The complaint from Mercado Libre points to a significant concern over monopolistic practices and restrictions that inhibit fair competition and consumer choice. As various jurisdictions begin to challenge Apple’s longstanding policies, the implications for its operations and profitability become increasingly significant.
In conclusion, the mandatory policy changes required by the Brazilian antitrust regulator represent a critical step towards increasing competition in the app marketplace. As Apple is compelled to revise its restrictions, the outcome will likely influence similar legal and regulatory actions globally. These developments could further dismantle the structures of power that technology giants have long maintained, promoting a more competitive and consumer-friendly environment.
Original Source: techcrunch.com
