Apple has agreed to allow alternative app stores and third-party payment options on its iOS operating system in Brazil, settling a three-year antitrust investigation with the country’s competition authority CADE. The agreement marks a significant shift in Apple’s long-standing App Store policies in one of Latin America’s largest digital markets.
CADE Accepts Apple’s Proposal
Brazil’s antitrust regulator said its internal panel formed a majority in favor of accepting Apple’s proposed settlement. The agreement brings an end to proceedings that began in 2022 and escalated after CADE imposed preventive measures against Apple in 2024.
Under the settlement, Apple will permit app developers in Brazil to distribute their applications through app stores other than Apple’s own App Store. In addition, developers will be allowed to use third-party payment processing methods for in-app purchases or provide links that redirect users to external websites to complete transactions.
Changes to iOS Ecosystem in Brazil
The agreement requires Apple to implement these changes within 105 days. Once the new terms become mandatory for developers, the settlement will remain in force for three years, according to CADE.
Apple said it will comply with the regulator’s demands but cautioned that opening the iOS ecosystem could introduce privacy and security risks for users. The company noted that while it has taken steps to maintain protections against certain threats, not all risks can be fully eliminated under the new framework, Reuters news report said.
Origin of the Antitrust Probe
The investigation was triggered by a complaint filed in 2022 by MercadoLibre, a major e-commerce and digital services platform based in Uruguay that operates across Latin America. The complaint accused Apple of imposing restrictive rules on the distribution of digital goods and limiting payment options for in-app purchases on iOS.
Following the complaint, CADE intensified its scrutiny and issued preventive measures in 2024 aimed at curbing Apple’s App Store practices in Brazil. Earlier this year, CADE’s technical body recommended a ruling against Apple, pushing the case to the regulator’s internal panel for a final decision, which ultimately led to the settlement.
MercadoLibre’s Response
MercadoLibre acknowledged CADE’s efforts to address what it described as competitive challenges associated with iOS and Apple’s App Store in Brazil. However, the company said the agreement only partially addresses the need for more balanced and competitive rules in the mobile app ecosystem.
Financial and Legal Implications for Apple
As part of the settlement, Apple could face a fine of up to 150 million reais, equivalent to about $27.09 million, if it fully breaches the agreement. CADE also confirmed that Apple agreed to withdraw a judicial complaint it had filed against the preventive measures imposed by the regulator in 2024.
Market Trends
Brazil is one of the largest and fastest-growing mobile app markets in the world. In 2023, mobile app downloads in Brazil reached about 10.2 billion, ranking the country fourth globally in volume. Brazilians spent roughly US$1.7 billion on apps that year. Revenue from apps in Brazil was around US$4.5 billion in 2023, with entertainment and e-commerce among the leading categories.
Projections estimate Brazil’s mobile application market generated roughly US$7.8 billion in revenue in 2024 and is expected to more than double by 2030, with the Apple App Store as the largest revenue segment among app stores, according to Grand View Research.
Apple App Store – Brazil Specifics
The Apple App Store plays a major role in Brazil’s app economy, acting as both a local marketplace and a global platform for Brazilian developers.
In 2024, the App Store ecosystem in Brazil facilitated R$63.8 billion (approx. US$11.7 billion) in billings and sales for developers. This figure includes revenues from digital and physical goods sold through iOS apps and in-app advertising. 90 percent+ of that revenue went directly to developers without Apple’s commission, highlighting the scale of developer earnings.
On the Brazilian App Store itself, users downloaded apps about 1.5 billion times in 2024, and the store averaged around 25.5 million weekly visitors. Apps developed in Brazil were downloaded over 570 million times globally, with more than half of developers’ revenue coming from users outside Brazil.
Jobs and Ecosystem
The App Store supports an estimated 275,000 jobs in Brazil, reflecting the employment impact of the app ecosystem and related developer communities. Developer programs and initiatives such as Apple Developer Academies have contributed to local skills development, training thousands of students in app creation and entrepreneurship.
BABURAJAN KIZHAKEDATH
