Apple is appealing Brazil’s antitrust regulator Cade’s decision regarding the App Store. On Thursday evening, a Brazilian court overturned an order that would have required Apple to enable third-party app downloads for Brazilian users within 20 days.
Court Ruling Overturns Cade’s Order
A judge at Brazil’s Federal Court deemed Cade’s directive “disproportionate and unnecessary.” The judge noted that the proposed measures would “sensitively and structurally” alter Apple’s business model. Earlier, Cade had ruled on November 26 that Apple must comply with the antitrust law within 20 days or face a fine of 250,000 reais ($42,000) per day. Apple contested this, arguing that implementing the changes required more time due to their complexity.
Complexity and Global Impact Cited
The judge emphasized the technical challenges and broader global implications of similar regulatory decisions, such as those in the European Union. “The technical complexity of the changes and the global regulatory impact reinforce the need for a more in-depth discussion of such changes,” the judge stated. The ruling acknowledged that adapting Apple’s systems to allow third-party app stores, as required in the EU, would require significant adjustments, notes NIXSolutions.
Apple has voiced concerns about Cade’s decision, stating it “dramatically threatens” user privacy and security and labeling it “arbitrary.” Cade’s investigation stems from a complaint by Latin American e-commerce giant Mercado Libre, which accused Apple of forcing developers to use its payment system for apps offering digital goods or services. Cade is also scrutinizing Apple’s allegedly anti-competitive terms on iOS.
Investigation Continues
While the court’s decision grants Apple more time, the regulator can appeal, and the investigation remains ongoing. Apple may still be required to enable sideloading in Brazil, pending further legal and regulatory developments. We’ll keep you updated as more information becomes available.