In a dramatic turn of events, a Brazilian federal court has suspended an antitrust ruling that would have forced Apple to open its App Store to third-party payment systems. The decision provides temporary relief to the tech giant, which was facing daily fines of $43,000 for non-compliance.
Judge Eduardo Santos da Rocha Penteado of the 14th Federal Civil Court overturned the original ruling by Brazil's competition regulator (Cade), describing it as "disproportionate and unnecessary." The judge noted that implementing such changes would substantially alter Apple's business structure and required deeper consideration given the technical complexities involved.
The initial ruling stemmed from a 2022 complaint by MercadoLibre, a major Latin American e-commerce platform. Cade had ordered Apple to remove restrictions on alternative payment methods and allow developers to promote different payment options for in-app purchases within a 20-day deadline.
Apple had appealed the original order, arguing that the mandated changes were too complex to implement in such a short timeframe. The company has consistently maintained that allowing third-party payment systems would compromise user privacy and security.
While this ruling offers temporary relief for Apple, the broader antitrust investigation into the company's App Store practices remains active. Cade is expected to challenge the court's decision, suggesting this may not be the end of Apple's regulatory challenges in Brazil.
This case reflects Apple's ongoing regulatory battles worldwide, including a recent €1.8 billion fine from the European Commission regarding music streaming app restrictions. The outcome of this Brazilian case could set a precedent for similar disputes in other markets.