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Brazilian regulator orders Apple to lift in-app purchase restrictions

by on27 November 2024


Takes on the fruity cargo cult

Brazils antitrust regulator Cade has taken the brave step of telling Apple what to do and order the fruity cargo cult to lift restrictions on payment methods for in-app purchases.

The order is part of an ongoing investigation into a complaint filed by Latin American e-commerce giant MercadoLibre.

MercadoLibre's complaint, filed in 2022 in Brazil and Mexico, accused Apple of imposing a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books, and written content.

MercadoLibre slammed the California tech giant for requiring developers that offer digital goods or services within apps to use Apple's own payment system and stopping them from redirecting buyers to their websites.

Cade ruled that Jobs’ Mob must allow app developers to add tools so customers can buy their services or products outside the app, such as through the use of hyperlinks to external websites.

Another preventive measure is that Apple must allow app developers to offer other in-app payment processing options apart from the one owned by Apple, the regulator added.

Apple will have 20 days to comply with the measures, Cade said, imposing a 250,000 real (about $43,000) fine per day if Apple fails to comply with the demands.

Jobs’ Mob will presumably continue the fight to the highest court in the land all the while denying that it has done anything wrong.  CEO Tim Cook has been known to ring up his chum Donald Trump and complain that his company is being picked on by those bullies in the rest of the world. If Trump listens, Brazil could be added to Trump’s tariff list.

However, if Apple ends up obeying, the move will see increased Competition. By allowing app developers to use alternative payment methods and link to external websites, smaller developers and competitors may have a better chance to compete with larger companies. This could lead to a more diverse and competitive app market in Brazil.

Of course, it will mean that Apple’s revenue from in-app purchases could decrease as developers might choose alternative payment systems that offer lower fees. This could impact Apple's overall earnings from its App Store.

Brazil is not the first country to blow the whistle on Apple’s anti-trust antics. The EU, South Korea, and Japan have also made similar orders.

Last modified on 27 November 2024
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