Apple’s ongoing confrontations with antitrust authorities continue, as Brazil has ruled that the anti-steering policies of its App Store are illegal.
The Brazilian antitrust agency, CADE, noted that Apple’s transaction fees are harmful to developers, ordering the company to remove limitations on payment methods for in-app purchases. Apple must allow app developers to provide options that enable users to buy or subscribe to services outside of the app, such as through links leading to external sites.
Similar claims have emerged in the United States. An injunction stemming from a 2021 lawsuit against Epic Games forced Apple to accept alternative payment methods. However, a federal judge determined that Apple’s implementation of this requirement was inequitable. Judge Yvonne Gonzalez Rogers pointed out that Apple had deliberately utilized misleading “scare screens” and static URLs to obstruct users from selecting third-party payment options. While Apple contended that profit was not its main goal, the judge noted that an executive had given false testimony regarding the company’s financial motivations.
Consequently, Apple’s appeal against the injunction was unsuccessful, necessitating the company to open its App Store to additional payment options. Furthermore, it is currently facing a class-action lawsuit in the U.S. concerning its payment practices within the App Store. The company’s 27% commission on all transactions has drawn criticism as excessive. The European Union has also voiced disapproval of Apple’s closed system, and the Digital Markets Act, which has been in effect since 2023, requires the technology giant to allow third-party app stores in European markets.
According to 9to5Mac, Apple must comply with the Brazilian regulator’s order within 20 days to avoid daily penalties. Many countries view Apple’s closed ecosystem as monopolistic, suggesting that similar rulings may emerge in the future.
Image Source: Tada Images / Shutterstock
