A reminder of the difficulties that can be faced by a global brand working in multiple territories with specific local rules and concerns comes from multinational technology company Apple, which is facing two very different regulatory challenges in two very different regions.
In Indonesia the issue is local investment – or lack of it. In Brazil Apple faces allegation of restrictions on the distribution of digital goods and in-app purchases.
Apple’s offer to invest an additional US$100 million in Indonesia – in the hope it would convince the government to approve sales of its new iPhone 16 in the country – has been rejected.
The offer, reported here just under a week ago, is said to lack the "fairness" required by the government.
Indonesia last month prohibited the marketing and sale of the iPhone 16 model because of what is said to be Apple's failure to meet local investment regulations requiring that 40% of phones be made from local parts. The country is seeking to boost investments from giant tech companies – like Apple.
Apple’s enhanced investment was rejected as the company has apparently still not put money into production facilities or factories in Indonesia. As AFP reports, the industry ministry has urged Apple to immediately set up a production facility or factory in Indonesia "based on the fairness principles" so the company does not have to file an investment scheme proposal every three years.
The new iPhone 16s can still be brought into Indonesia if they are not being traded commercially. Google Pixel phones have apparently also been targeted for failing to meet the 40% parts requirement.
Meanwhile Reuters reports that Brazilian antitrust regulator Cade said on Monday that Apple must lift a number of alleged restrictions on certain payment methods.
A complaint filed by Latin American e-commerce giant MercadoLibre in 2022 in Brazil and Mexico accused Apple of imposing a series of restrictions on the distribution of digital goods and in-app purchases. This apparently included banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content.
In its complaint, MercadoLibre suggests that Apple is requiring developers that offer digital goods or services within apps to use Apple's own payment system and stopping them from redirecting buyers to their websites.
Regulator Cade therefore wants Apple to allow app developers to add tools so customers can buy their services or products outside the app. App developers must also be allowed to offer other in-app payment processing options apart from the one owned by Apple.
After a 20-day grace period daily fines of some US$43,000 will be applied if the situation is not resolved.
