Apple to allow sideloading in Brazil: Court sets 90-day deadline

A long-running dispute is picking up speed: Apple has been given a 90-day deadline in Brazil to allow sideloading for iPhones. This means downloading an app directly from the website or the developer's own app store instead of from Apple's official app store. The measure follows a lengthy dispute between the Brazilian federal court and the tech company. But Apple intends to fight back.

The court's ruling was issued on Wednesday. Third-party providers should also be able to offer their apps outside of Apple's App Store, for example in their own app stores or on their website. The tech company has not allowed this in most countries to date. Developers are only allowed to distribute their apps on Apple's platform and pay a fee for this. For paid apps, this fee amounts to around 30 percent of a subscription fee or a one-off purchase price. Apple grants discounts for smaller developers.

Alternative app stores allowed in the EU

In the EU, however, Apple had to partially abandon this as part of the Digital Markets Act (DMA). Since iOS 17.4, alternative marketplaces have been available on iPhones in the EU. However, Apple also charges fees here, anchored in its alternative terms and conditions, which developers must agree to in order to use an alternative marketplace. However, the model here is much more complex and is based on the number of installations, among other things. The EU is currently asking affected developers about the effects.

A model similar to that in the EU – presumably without the fees contributed by Apple – is now also being considered by the Brazilian Federal Court. Its reasoning: Apple's strict rules would jeopardize the entry of new developers into the market. Apple received an ultimatum from the Brazilian government back in November: the Conselho Administrativo de Defesa Econômica (CADE), the national competition watchdog in the South American country, threatened Apple with fines of the equivalent of 41,000 euros per day if the company left its app store in the country as it was. The request came from e-commerce giant MercadoLibre, which wanted to use its own payment methods in Apple's software store.

Apple initially defends itself with success

However, Apple took legal action against this, initially with success: a court ruling confirmed that the fines were an unnecessary measure. Apple had argued that the changes demanded by CADE were not urgent and that they would have a negative impact on its business.

Around a quarter of a year later, the Brazilian judiciary is now contacting Apple again with a 90-day deadline. In its reasoning, the court refers to other countries where the requested changes have already been implemented and no significant impact or damage to Apple's business model has been observed.

An Apple spokesperson told Valor Econômico newspaper on the issue that the company "believes in vibrant and competitive markets" and that it faces competition "in all segments and jurisdictions" in which it operates. Apple reiterated this in its commitment to its users. The company believes that the changes will "compromise the privacy and security" of iOS users and has announced that it will appeal the decision.

(nen)