Apple ordered to open up in-app purchases in Brazil

Brazil's antitrust regulator, Cade, has ordered Apple to lift its restrictions on in-app purchases, marking another significant chapter in the global legal challenges facing the tech giant over its App Store policies. The ruling, reported by Reuters, requires Apple to allow app developers to link to external websites for subscriptions and digital purchases or allow developers to manage payment processing themselves. Apple now has 20 days to comply with this decision, or it will face fines of up to 250,000 Brazilian reais (approximately $43,000) per day. This latest ruling stems from a complaint filed by Mercado Libre, the largest e-commerce platform in Latin America, which accused Apple of stifling competition by limiting payment options within apps and preventing developers from directing customers to external payment systems .

The issue centers around Apple's "anti-steering" rules, which prevent developers from promoting or linking to alternative payment methods outside the App Store’s ecosystem. The Brazilian regulator's decision is part of a broader trend of scrutiny faced by Apple over its control of in-app transactions, particularly in markets where regulators are concerned about anti-competitive behavior. Cade’s ruling is not isolated, as similar decisions have been issued by regulatory bodies in other parts of the world, including the European Union, South Korea, Japan, and the United States. In the EU, for instance, Apple was ordered to allow third-party app stores, giving users the option to bypass the App Store altogether. In the U.S., a court ruling forced Apple to let developers provide external links for purchasing content, although Apple’s compliance has been criticized for being half-hearted.

The ruling is significant because it represents an escalation in antitrust actions against Apple, and it adds to a growing body of legal challenges questioning the company's dominance in the digital marketplace. Apple has consistently argued that its strict control over the App Store is necessary for security, privacy, and user experience. However, critics argue that these policies serve to lock users and developers into Apple’s ecosystem, preventing competition and inflating costs for consumers. While the Brazilian decision imposes a relatively small fine, its broader implications could pressure Apple to further loosen its grip on the App Store. The fact that Apple has been forced to comply with similar rulings in other regions suggests that the company may be increasingly willing to make concessions to regulators, but whether it will fully comply with Cade’s decision remains uncertain .

This ruling highlights a growing global movement to rein in the power of tech giants like Apple. It’s becoming clear that regulators are challenging the company's walled garden approach, which has long restricted developers from offering alternative payment methods. As these legal battles unfold, they could reshape the digital marketplace by forcing Apple and other companies to adopt more flexible and competitive business models, potentially benefiting both consumers and developers .

As regulators around the world continue to scrutinize Apple’s App Store practices, this ruling is unlikely to be the last. With the European Union already requiring significant changes to Apple’s payment policies, it’s expected that other jurisdictions, including Brazil, may continue to impose similar mandates in the coming years. These legal decisions mark a turning point for the app economy, as developers gain more control over how they monetize their products. If Apple fails to comply with Brazil’s ruling, it could face increased pressure in other markets to align with evolving antitrust standards.