Brazil Orders Apple to Remove In-App Payment Restrictions Amid…

Brazil’s antitrust regulator, Cade, has ordered Apple to eliminate its restrictions on in-app payment options as part of a broader investigation. MercadoLibre, a major Latin American eCommerce platform, filed a complaint against Apple for these practices. If Apple does not comply within 20 days, it may face severe fines. The company’s policies are under scrutiny worldwide, with implications for its competitive practices.

Apple faces an antitrust mandate from Brazil’s regulatory authority, Cade, demanding the removal of restrictions on in-app purchase payment methods. This decision stems from an investigation into a complaint by MercadoLibre, which accused Apple of monopolizing the distribution of digital goods and services in both Brazil and Mexico. Cade insists that developers must be allowed to utilize third-party payment systems and provide consumers with options outside of Apple’s payment framework. Should Apple not comply within twenty days, it may incur penalties of up to $43,000 per day. This move is part of a broader global scrutiny of Apple’s payment policies, reflecting ongoing tensions between significant technology firms and regulatory bodies.

In recent years, Apple has faced increasing scrutiny from various antitrust regulators regarding its in-app payment policies. The company’s restrictions on payment methods for in-app purchases have led to accusations of monopolistic practices, particularly from companies like MercadoLibre in Latin America. By requiring developers to utilize its payment system and prohibiting diversion to external payment options, Apple has drawn criticism from multiple stakeholders. Furthermore, this situation is placed against the backdrop of similar actions in other jurisdictions, including Europe and China, highlighting a persistent conflict between regulatory bodies and major tech corporations over competitive fairness.

In conclusion, Brazil’s Cade has placed Apple under pressure to modify its in-app payment restrictions, thereby potentially reshaping the digital goods sector in both Brazil and Mexico. This development highlights a growing global trend of regulatory bodies challenging the payment practices of large technology firms. With significant fines looming, Apple must navigate this regulatory landscape carefully to maintain its operations in these important markets.

Original Source: www.pymnts.com