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Brazil orders Apple to allow Sideloading on iOS devices within 90 days

BBG News

Story Highlights

  • If upheld, Brazil will become the second major market forcing Apple to adopt a more open mobile ecosystem.
  • The tech giant has 90 days to allow third-party app stores on iOS in Brazil or face daily fines exceeding $40,000.
  • Apple plans to appeal, arguing that CADE’s measures threaten user privacy and security.

In a recent turn of events, Apple is facing another wave of regulatory scrutiny. The Brazilian Court has mandated that Apple enables app sideloading on their iOS devices within 90 days in Brazil. This ruling mirrors the requirements set by the European Union’s Digital Market Act, which compels Apple to accept third-party app stores and sideloading within the European region.

Apple might face daily fines exceeding $40,000 or be forced to allow sideloading if the ruling stands

By November 2024, the Administrative Council for Economic Defense (CADE) made a ruling that Apple should remove limitations in Brazil, which prohibit iOS users from installing apps from sources beyond the App Store. Yet, Apple was given more time to challenge this decision following an appeal.

Following Valor Econômico’s report, Federal Judge Pablo Zuniga has ordered the tech giant to enable third-party app stores on iOS within 90 days in Brazil, or face daily fines exceeding $40,000. The judge additionally reinstated a decision from Brazil’s antitrust authority, CADE, counteracting a prior ruling.

In simpler terms, Judge Zuniga stated, “Apple has fulfilled similar responsibilities in other nations without showing significant negative effects or permanent damage to its business structure.” He then extended the CADE’s initial 20-day deadline to 90 days because it necessitates “some strategic planning and technical advancement.

2022 saw the initiation of an antitrust case against a tech behemoth, following a complaint lodged by e-commerce leader from Latin America, Mercado Libre. The complaint alleged that the company had been misusing its market power by mandating developers to utilize its payment system for digital products and services, thereby stifling competition in the sector.

Apple’s response to the new ruling

Apple representative Fred Sainz reiterated Apple’s position, expressing that “Apple champions lively and competitive markets that foster innovation.” He further noted, “We encounter competition in all areas and regions where we operate, and our primary concern is always the confidence of our customers.

Apple intends to challenge the ruling, with Mr. Sainz stating that the temporary measures suggested by CADE could potentially compromise the privacy and security of our users. If this decision stands, Brazil could join the European Union as the second significant market advocating for a more open mobile environment.

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2025-03-08 13:12

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