Brazil Orders Apple to Lift In-App Purchase Restrictions Within 20 Days or Face $43K Daily Fines

Brazil's competition regulator has given Apple 20 days to lift in-app purchase restrictions and address other demands or face a $43,000 daily fine for non-compliance.

Yesterday, the Administrative Council for Economic Defense's General Superintendence (SG/Cade) launched an administrative proceeding against Apple to investigate suspected abuse of its dominant market position. The allegations include creating artificial barriers to the entry and development of competitors, as well as tying practices.

The anti-competitive conduct arises from various provisions in Apple's Terms & Conditions (T&Cs) governing the operation of its mobile device operating system, iOS. SG/Cade is examining whether these practices have the potential to close off national markets for app distribution, digital goods and services distribution, and in-app purchase processing systems within the iOS ecosystem.


Notably, as part of its investigation into these allegations, Brazil has imposed a preventive measure requiring Apple to allow developers and users to choose their own "distribution channels" and "in-app payment processing systems." Apple has 20 days to comply with these changes or face a daily fine of $43,000 USD.

With the initiation of this administrative proceeding, the defendants will be notified to present their defenses. Upon conclusion of the investigation, the General Superintendence will recommend either conviction or dismissal of the case. The final decision will be made by Cade's Tribunal. In the meantime, SG/Cade has adopted a preventive measure to ensure developers and iOS users have the freedom to choose distribution channels and in-app payment processing systems. Apple has 20 days to implement the necessary mechanisms and tools to comply with this preventive measure. Failure to do so will result in a daily fine of R$250,000.

The regulator says its actions aim "to protect collective well-being, the public interest, and free competition."

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