Brazil Threatens Apple with Daily Fines Over App Store Monopoly Practices

Brazil's antitrust authority has ordered Apple to allow third-party payment systems in its App Store, giving the company 20 days to comply with the mandate.

If Apple fails to meet this requirement, it faces daily fines of $43,000, Bloomberg reports. This ruling follows a 2022 complaint filed by MercadoLibre, Latin America’s largest e-commerce platform, accusing Apple of abusing its market dominance by forcing developers to use its in-app payment system and prohibiting links to external payment services.

The Brazilian authority has outlined the following demands for Apple:

• Permit developers to integrate third-party payment systems within their apps.
• Allow links to external websites for purchases.
• Remove restrictions on selling third-party products and services within apps.

Brazil’s move mirrors Apple’s antitrust struggles in the European Union. In March 2024, the European Commission fined Apple $1.95 billion for barring developers of music apps like Spotify from informing users about cheaper subscription options outside the App Store.

Failure to comply could not only result in financial penalties for Apple but also damage its reputation in the rapidly growing Latin American market. Additionally, such rulings may set a precedent for other countries aiming to curb Apple's control over the App Store ecosystem.