It’s not just in Europe or the USA that there is resistance to Apple’s requirement to only allow payments in the App Store via the iTunes account. In Brazil, the company is now facing a daily fine in the mid-five-figure range – it could have been worse.
In Brazil, Apple could soon be fined around 40,000 euros per day if the company does not enable alternative payment methods in its App Store. These sanctions could be imposed by the Conselho Administrativo de Defesa Econômica (CADE), Brazil’s competition authority.
Reason for the penalty: Payments in the App Store
The background to the possible punishment is loud Agency reports the accusation that Apple is restricting competition by not allowing alternative payment options in addition to its own payment system. A corresponding application was submitted by MercadoLibre, a Brazilian trading company, which sees its market access impaired by Apple’s practices.
Possible consequences and options
Apple could implement the requested changes or seek to appeal the requirement. It remains unclear whether an appeal is possible in this case. In other markets, such as the European Union, the Digital Markets Act already requires the approval of alternative means of payment. Apple has also been required to give app developers greater flexibility in payment processing in select other regions.
A lucrative business model under pressure
Apple’s own payment system in the App Store charges commissions of 15 to 30 percent, which make up a significant portion of revenue in the services division. This division, which also includes iCloud subscriptions and revenue from paid apps, is a key growth driver for the group. In comparison, services like Apple TV+ or Apple Arcade contribute significantly less to overall revenue.
The Brazilian competition regulator’s decision could put further pressure on Apple’s App Store business model as similar claims grow around the world.
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