Apple Required to Remove In-App Purchase Limits in Brazil Due to Antitrust Rules

Brazil’s Cade has mandated Apple to remove in-app purchase restrictions, responding to complaints from MercadoLibre regarding limitations on digital product distribution. Apple faces potential fines for non-compliance and is under investigation for similar practices globally.

Brazil’s antitrust regulator, Cade, has ordered Apple to eliminate its restrictions on in-app payment methods, following a complaint from eCommerce giant MercadoLibre. This complaint accused Apple of restricting developers from selling third-party digital goods and enforcing the mandatory use of its payment system. The company must allow developers to direct users to alternative payment methods and may face daily fines of up to $43,000 if compliance is not achieved within 20 days. This action is part of a broader scrutiny of Apple’s in-app payment policies, which have faced criticism and legal challenges globally, including recent allegations of monopolistic practices in China.

The issue of in-app payment systems has garnered significant attention from regulators worldwide, as concerns grow over the monopolistic behaviors of major technology companies like Apple. The complaint stemming from MercadoLibre highlights the challenges that developers face under Apple’s current policies, which restrict the accessibility and distribution of digital goods via third-party options. As regulators, specifically in Brazil and Europe, pursue antitrust investigations, Apple’s practices are increasingly under the microscope, affecting its global operations and relations with app developers.

In summary, Brazil’s regulatory actions against Apple signify a growing trend where antitrust authorities worldwide are challenging the restrictions imposed by major tech companies on in-app purchases. The rulings require Apple to adapt its payment systems, allowing developers greater freedom to offer alternative payment options. As regulatory pressures intensify, Apple must navigate these challenges while balancing its business model against evolving competition laws.

Original Source: www.pymnts.com