After a report surfaced earlier today regarding Apple’s appeal against a ruling from a Brazilian antitrust regulator concerning the App Store, the Brazilian judiciary chose to reverse the injunction on Thursday night that would have mandated Apple to permit sideloading on iOS for users in Brazil within 20 days.
Apple receives an extension to address Brazilian regulator’s ruling on the App Store
A recent report from Valor Econômico indicates that a judge from the Brazilian Federal Court has determined that the ruling from Cade, the Brazilian regulatory body, is “disproportionate and unnecessary.” The judge noted that the imposed measures would significantly alter Apple’s business operations.
On November 26, Cade had decreed that Apple must comply with antitrust laws within 20 days, or risk incurring penalties of R$250,000 (approximately US$42,000) per day. Apple had contested this ruling, claiming that the requested adjustments were overly complicated and would require too much time to implement, making compliance with the 20-day timeframe unfeasible.
The judge emphasized that the “technical complexity of the necessary changes, along with the global regulatory ramifications exhibited in other territories such as the European Union, highlights the necessity for a more thorough discussion of these changes.”
Essentially, Apple would be required to adopt in Brazil modifications similar to those it had previously enacted in the European Union earlier this year, including the introduction of alternative App Marketplaces to the App Store. In reaction to Cade’s decision, Apple stated that the ruling “drastically threatens” user privacy and security and labeled it as “arbitrary.”
Cade’s inquiry was initiated after major Latin American e-commerce player Mercado Libre accused Apple of compelling developers who offer digital goods or services through their apps to utilize Apple’s proprietary payment system. Additionally, Cade is investigating Apple for alleged “tying” practices, which involve enforcing anti-competitive terms and conditions on iOS.
Though the judge invalidated the injunction, the Brazilian regulator retains the right to appeal, and ongoing investigations will proceed, indicating that Apple may still be required to enable sideloading in Brazil – albeit with extended time to manage the circumstances.
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