Apple to allow third-party app stores in Brazil to settle iOS case with regulator

SAO PAULO, Dec 23 (Reuters) – Apple will allow other app stores besides its own in the tech giant’s iOS operating system in Brazil to settle a three-year case with ‍the country’s antitrust regulator CADE, both parties said on Tuesday.

An internal panel at CADE formed a majority to accept Apple’s proposal of an agreement, CADE said in a statement.

Apart from the app stores, the agreement also orders Apple to allow for third-party payment processing methods for in-app purchases ‌besides its own, or links to external websites ‌for transactions.

Apple said in a statement it will make the changes to comply with CADE demands, but that these moves will open privacy and security risks to users.

The California-based company said it has “worked to maintain protections ​against some threats,” but that “these safeguards will not eliminate every risk.”

The probe started after a complaint filed in 2022 by ‍Uruguay-based e-commerce platform MercadoLibre over Apple’s alleged ​restrictions on the distribution of digital goods and ​on in-app purchases.

CADE then issued preventive measures targeting Apple in 2024, and ‍earlier this year, its technical body recommended a ruling against the U.S. company, sending the case to the regulator’s internal panel for a final decision.

MercadoLibre, which operates across Latin America, said it acknowledged CADE’s efforts “to face the competitive challenges” of iOS and ‍Apple’s App Store service in Brazil, but added the agreement “only partially addresses the needs of more balanced rules.”

The agreement between CADE and Apple will ‍last three years, ‍starting once the new terms become mandatory for ​app developers, the regulator said. Apple has 105 ​days ⁠to execute the changes it agreed to, the ‌antitrust body added.

The tech company is subject to a payment of up to 150 million reais ($27.09 million) in case it fully breaks the agreement, CADE said, noting Apple also agreed to terminate a judicial complaint it had filed against the 2024 preventive measures.

($1 = 5.5375 reais)

(Reporting by Andre RomaniEditing ⁠by Rod Nickel)