Apple Opens Brazil to Third-Party App Stores
▼ Summary
– Apple will allow third-party app stores and external payment systems for iOS in Brazil next year to settle a legal case with the country’s competition regulator, CADE.
– The company must implement these changes within 105 days or face a potential fine of up to approximately $27 million.
– Apple can still charge fees under an unspecified structure, and any warnings about third-party stores must use neutral language.
– The company has argued this compromises security but has made similar concessions in Europe, Japan, and the U.S. due to regulation.
– In a statement, Apple says it is making the changes to comply but warns they introduce new privacy and security risks, though some safeguards will remain.
Apple will begin permitting third-party app stores on iPhones in Brazil starting next year, marking a significant shift in its longstanding policy. This change comes as a result of a settlement with Brazil’s Administrative Council for Economic Defense (CADE), concluding a legal dispute that began in 2022. The agreement compels the tech giant to open its iOS ecosystem to alternative app marketplaces and allow developers to integrate external payment systems.
The approved commitment terms require Apple to implement these changes within a 105-day period. Failure to meet these obligations could result in a substantial penalty, with fines reaching up to R$150 million, approximately $27 million USD. While the company can still impose fees on transactions, the specific structure for these charges was not detailed in the regulatory announcement. Additionally, any warnings presented to users about the potential risks of using third-party stores or payment methods must be phrased in a neutral manner.
Historically, Apple has strongly defended its closed ecosystem, arguing that opening iOS to external app sources could undermine the platform’s security and user privacy. However, global regulatory pressure is increasingly challenging this stance. Similar mandates have already forced Apple to allow alternative app stores for users in the European Union and Japan. In the United States, the company has been required to permit developers to include links to external payment options.
In a statement regarding the Brazilian decision, Apple acknowledged the regulatory requirement while reiterating its security concerns. The company stated it is implementing the necessary changes to comply with CADE’s demands but warned that these adjustments could introduce new privacy and security vulnerabilities. Apple emphasized it has worked to preserve certain protective measures, including specific safeguards for younger users, and affirmed its commitment to advocating for what it views as the safest possible mobile experience in Brazil.
(Source: The Verge)
