Apple to Permit Alternative App Stores and Payment Systems in Brazil

Resolution Achieved After Extensive Investigation by Brazilian Authorities

Following a thorough investigation spanning several years, Brazilian regulators have settled with Apple regarding its App Store fee policy and restrictions against alternative app marketplaces. Initially reported by the Brazilian tech portal, Brazil’s Administrative Council of Economic Defense (CADE) has accepted Apple’s settlement offer to resolve accusations of anticompetitive conduct.

Under this agreement, third-party payment solutions for app purchases will be allowed, curtailing Apple's efforts to limit user guidance to external platforms. The terms dictate that these alternative payment options must be presented alongside Apple's services. Additionally, Apple is obligated to allow the installation of third-party app stores on its products, albeit with the option to issue impartial warnings to users.

New Fee System and Compliance Deadlines

A new fee framework accompanies the agreement, stipulating no charge for directing users via text to external payment methods. However, clickable external payment options will attract a 15% fee. Transactions conducted within Apple's own store will continue to incur a 10% to 20% commission. Moreover, app developers using Apple’s payment processor will face a 5% transaction charge.

An additional 5% 'Core Technology Fee' will be imposed on all applications downloaded from third-party app marketplaces. This revised system mirrors changes introduced following the enactment of the EU's Digital Markets Act, which mandates similar freedoms and fee variations.

Potential Penalties and Ongoing Regulatory Challenges

Apple has a fixed period of 105 days to implement the new agreement’s requirements or risks fines reaching $27 million. The tech giant is under increasing scrutiny from global regulators over its restrictive practices and recently faced a $587 million penalty from the EU for contravening the Digital Markets Act, which Apple is appealing. In the United States, the company is entangled in legal proceedings with Epic Games regarding the commissions on third-party transactions.