Regulation

Apple settles dispute with Brazilian regulator

Apple settles dispute with Brazilian regulator

Apple has settled its case with Brazilian antitrust regulator CADE, which had criticised alleged restrictions by the technology giant on certain payment methods.

The three-year case with CADE now appears to have been settled, after an internal panel at the regulator accepted Apple's proposal. Apple will now allow other app stores besides its own in its iOS operating system in Brazil. 

Apart from the change in how Apple deals with other 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.

Reuters notes that the dispute started with a complaint filed in 2022 by e-commerce platform MercadoLibre over Apple's alleged restrictions on the distribution of digital goods and on in-app purchases.

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

However, Apple is not letting the deal go without firing a few shots of its own. Reuters reports that Apple has said in a statement that it will make the changes to comply with CADE demands, but that these moves will open privacy and security risks to users; despite maintaining protections against some threats, it says, its safeguards will not eliminate every risk.

The agreement between CADE and Apple will last three years. Apple has 105 days to put in place the changes it agreed to and may be liable to a fine of just over US$27 million if it breaks the agreement.

Apple has also agreed to terminate a judicial complaint it had filed against the 2024 preventive measures.

This has not been the only regulatory issue Apple has had to manage in recent years. In November last year we reported on both its challenges in Brazil and issues relating to investment in Indonesia.



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