Brazil has ruled that Apple’s App Store anti-steering policies are unlawful, marking another antitrust setback for the tech giant. As a result, Apple can no longer prohibit developers from directing users to their own sites for in-app content sales, including books, movies, music, and games.
The company has previously been mandated to permit third-party app stores in the European Union and to allow developers in the US to sell in-app content outside its App Store.
Brazil joins a growing list of nations asserting that Apple violates competition laws by maintaining monopolistic control over iPhone app sales and in-app purchases.
In line with EU and US antitrust decisions
Apple’s most significant defeat occurred in the EU, where it was ordered to enable third-party app stores, allowing users and developers to completely circumvent the official App Store if they choose. To date, the company’s response has been interpreted as malicious compliance, and it appears likely that it will be found in violation of the law.
In the US, a lawsuit by Epic Games resulted in a decision that requires Apple to allow developers to link to outside platforms for purchasing content, such as the app creator’s website. Yet again, Apple has executed this in a manner that the presiding judge believes does not meet the terms of her ruling. A second judge suggested that Apple may have misled the court regarding its motivations.
Anti-steering regulations ruled illegal in Brazil
Reuters has reported on this recent development.
The Brazilian antitrust authority, Cade, announced on Monday that Apple must remove its restrictions on payment methods for in-app purchases, as part of an ongoing investigation prompted by a complaint from the Latin American e-commerce leader MercadoLibre […]
MercadoLibre criticized Apple for mandating that developers offering digital goods or services within apps utilize Apple’s payment system while preventing them from directing customers to their own websites. Cade ruled that Apple must enable app developers to incorporate tools for customers to purchase services or products outside the app, such as utilizing hyperlinks to external sites.
Just 20 days to adhere, yet minimal fines
Apple has 20 days to comply with the ruling or face daily penalties.
However, the highest fine that can be imposed is 250,000 Brazilian reais (approximately US$43,000), a figure that is insignificant for Apple. It remains uncertain if the company will meet the compliance deadline.
Photo by Agustin Diaz Gargiulo on Unsplash
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