Brazil's antitrust watchdog has given Apple an ultimatum - either remove restrictions on in-app payment methods within 20 days or face daily fines of $43,000.
The ruling comes from Brazil's competition regulator Conselho Administrativo de Defesa Economica (CADE) following an antitrust complaint filed by e-commerce company MercadoLibre in 2022.
CADE's decision requires Apple to allow app developers to direct users to external payment options and lift limitations on alternative in-app purchase systems. This marks another challenge to Apple's strict App Store rules.
The move aligns with similar regulatory actions worldwide. The European Union has already compelled Apple to revise its commission structure, while ongoing legal battles in the United States have begun to chip away at Epic Games Store restrictions.
The Coalition for App Fairness praised CADE's ruling, describing it as a key development in fostering a more competitive mobile app marketplace. They noted that Brazil joins other jurisdictions working to reform app store practices.
Apple maintains that its current policies protect consumers and provide value to developers. However, regulators argue that removing these restrictions would promote competition and give users more payment choices.
With mounting pressure from global regulators, Apple may need to fundamentally reconsider its App Store monetization strategy. The company has already developed alternative payment systems for other markets, which could potentially be adapted for Brazil.
The clock is now ticking for Apple to comply with CADE's requirements or begin accumulating substantial daily penalties.