Apple has agreed to open up the iPhone ecosystem in Brazil, allowing alternative app stores and non-Apple payment systems after reaching a deal with Brazil’s antitrust regulator – the Administrative Council for Economic Defense (CADE). The move is one of the biggest changes the tech titan has made to the App Store outside Europe and comes after years of regulatory pressure over claims that the company was limiting competition. Under the new rules, developers in Brazil can distribute iPhone apps through third-party app marketplaces and can also use payment systems other than Apple’s own in-app purchase platform.
The case began in 2022 after Latin American e-commerce giant MercadoLibre filed complaints against Apple, arguing that developers were being forced to use Apple’s payment system and were not allowed to direct customers to cheaper alternatives. Brazilian regulators later launched an antitrust investigation, saying Apple’s rules could be harming competition by giving the company too much control over how digital goods and services are sold on iPhones. The dispute escalated in 2024 when regulators ordered Apple to remove some restrictions while the investigation continued.
And now, as part of the latest agreement, developers will be able to offer alternative payment options for digital purchases, direct users to external websites to complete transactions, and distribute apps through competing app stores. This means the App Store will no longer be the only place where Brazilian iPhone users can download apps. Regulators believe these changes will increase competition, give developers more freedom, and provide consumers with more choices when purchasing digital content and services.
The settlement also includes strict compliance requirements. Apple was given 105 days to implement the changes and could face fines of up to 150 million Brazilian reais (about $27 million) if it fails to comply. The agreement will remain in effect for three years and also ends several legal disputes between Apple and Brazilian authorities over the issue. Regulators described the deal as a long-term solution designed to address competition concerns without a prolonged court fight.
Meanwhile, Apple has said it will continue to apply security checks to apps distributed outside its own App Store. The company argues that opening iOS to third-party app stores and payment systems could increase risks like malware, fraud, scams, and privacy violations. Even so, Apple has accepted similar changes in other markets and claims it will use measures like app reviews and technical verification processes to help maintain security standards.
For developers, the financial impact could be significant. Apple has traditionally charged commissions of 15% to 30% on many digital purchases made through the App Store. By allowing alternative payment systems and rival app marketplaces, developers may be able to reduce costs, improve profit margins, and potentially offer lower prices to consumers.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
