In a landmark ruling on Wednesday, a Brazilian federal court has ordered Apple to enable third-party app marketplaces for iPhone users in Brazil within 90 days or face daily fines exceeding $40,000.
Judge Pablo Zuniga emphasized that Apple has already implemented similar changes in other regions, particularly in the European Union, without experiencing major disruption to its business model. The EU's Digital Markets Act prompted Apple to introduce sideloading capabilities through iOS 17.4 and iPadOS 18 for European users earlier this year.
The case stems from a 2022 antitrust complaint filed by Brazil's competition regulator, Conselho Administrativo de Defesa Economica (CADE). The judge noted that Apple's current restrictions on developers could hinder market competition and prevent new competitors from entering the space.
Apple plans to challenge the ruling, arguing that the mandated changes would compromise the privacy and security of iPhone and iPad users in Brazil. The company stated that it "believes in vibrant and competitive markets" and faces competition across all segments where it operates.
While the legal proceedings may extend for several months, this ruling represents another challenge to Apple's controlled app distribution model. The company must now decide whether to comply with the Brazilian court's demands or continue its legal battle against the enforcement of third-party app marketplaces in the region.
The outcome of this case could set a precedent for other countries considering similar measures against Apple's app store policies.