Brazil: Apple faces five-figure fines – daily
Apple is having problems with its app store strategy not only in the EU. The company is now facing an ultimatum in Brazil due to a lack of payment alternatives.
App Store icon, clouds: Apple is not only in regulatory trouble in the EU.
(Image: Tada Images / Shutterstock)
Apple faces a fine of up to 41,000 euros (250,000 Brazilian reals) per day if it leaves its App Store in the country as it currently is. This was decided by the Conselho Administrativo de Defesa EconĂ´mica (CADE), the national competition authority in the South American country. The application came from e-commerce giant MercadoLibre, which would like to use its own payment methods in Apple's software store, but is currently not allowed to do so. The case is reminiscent of similar conflicts in the EU, the United States and other regions of the world.
Penalty comparatively "favorable"
What sounds like a lot of money in fines is still inexpensive for Apple. In the EU alone, Apple is to pay 1.8 billion euros due to restrictions on the Spotify music service, but is appealing against the EU Commission's decision. However, further proceedings are still ongoing due to possible violations of the Digital Markets Act (DMA), which could cost Apple significantly more. Here too, the App Store is a key element that the competition authorities are looking at.
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MercadoLibre had already complained to the CADE in 2022, and similar proceedings are also underway in Mexico. The provider wants to be able to sell content such as films, music or electronic books freely without having to pay Apple a commission of usually 30 percent. Apple regularly blocks apps that redirect payment transactions to its own websites, and even prohibits hyperlinks and mentions that would make this possible. The CADE now wants Apple to allow app developers to use alternative in-app payment methods that are not owned by the company. If Apple fails to do so within 20 days, it could face a fine of 250,000 reals per day in Brazil, writes the news agency Reuters, citing the authority.
Following the example of the Netherlands?
The question now is how Apple will implement the requirements or whether the company will lodge an appeal against the decision. Whether the latter possibility exists remained unclear at first. Apple does offer developers in individual markets the opportunity to use alternative payment methods if the company is forced to do so by regulators. However, this is rarely a good deal. For example, these channels are available in the USA and the Netherlands.
In the latter market, however, the commission to Apple is only reduced by 4 percent when using other payment providers, which is not really worthwhile depending on the payment service provider. Apple could possibly also go down this route in Brazil, making the offer unattractive.
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