Brazil’s competition authority, the Administrative Council for Economic Defense (CADE), has ratified a groundbreaking settlement with Apple that mandates sweeping changes to the App Store’s operations on iOS devices within the country.
The agreement, finalized through a Termo de Compromisso de Cessação on December 23, 2025, concludes a protracted antitrust investigation launched in December 2022 and imposes obligations for third-party app stores, external payment links, alternative in-app payment processors, and a differentiated commission structure—representing one of the most extensive liberalizations of Apple’s platform outside the European Union’s Digital Markets Act framework.
The probe originated from a complaint filed by Latin America’s e-commerce leader MercadoLibre, which accused Apple of abusing its dominant position by enforcing exclusive app distribution through the App Store and mandating its in-app purchase system for digital goods and subscriptions, typically at a 30% commission rate. CADE’s investigation scrutinized practices including the outright ban on sideloading and alternative marketplaces, restrictions preventing developers from directing users to lower-cost external payment options, and policies that stifled competition in Brazil’s burgeoning digital economy, home to over 150 million iPhone users.
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In its technical opinion earlier this year, CADE recommended condemnation, finding Apple’s rules created barriers to entry and innovation. Preventive measures imposed in late 2024—requiring Apple to permit external payments—were contested by the company in court but ultimately upheld, paving the way for the negotiated settlement. Key provisions of the agreement, effective for an initial three-year term with potential extensions or revisions, include allowing developers to integrate clickable buttons or links directing users to external websites for transactions, with no commission if only static text informs users of alternatives. Third-party payment processors may operate alongside Apple’s system inside apps, presented on equal footing without preferential treatment. Most significantly, Apple must enable alternative app stores and sideloading in Brazil, though it retains the right to display neutral, objective security warnings limited in scope and free of additional friction or discouraging language.
The fee structure introduces nuanced tiers: standard App Store transactions remain subject to commissions of 10% to 25% depending on developer size and volume, with an additional 5% transaction fee for those using Apple’s payment rails. External redirects via interactive elements incur a 15% fee, while purely informational static text triggers no charge. Third-party marketplaces face a 5% Core Technology Fee to cover platform maintenance and security.
Apple has up to 105 days from the agreement’s binding date—anticipated for early 2026—to roll out technical implementations, likely via an iOS update such as 19.3 or a dedicated Brazil-specific patch. Noncompliance risks fines up to R$150 million, approximately $27.1 million, alongside potential resumption of the full investigation.
Apple responded by emphasizing user protections: “In order to comply with regulatory demands from CADE, Apple is making changes that will impact iOS apps in Brazil. While these changes will open new privacy and security risks to users, we have worked to maintain protections against some threats, including keeping in place important safeguards for younger users.”
The company confirmed no plans to extend these concessions globally. The settlement’s complainant, MercadoLibre, described the outcome as partial progress but vowed continued vigilance. Industry analysts estimate the changes could reduce Apple’s App Store revenue in Brazil—part of its $100 billion-plus global services segment—by 15-25% annually, while empowering local developers in gaming, streaming, and fintech.Brazil, lacking DMA-equivalent legislation, achieved this through pure antitrust enforcement, distinguishing it from reforms in the EU, Japan, and South Korea.
The decision reinforces a global wave of scrutiny on Big Tech gatekeepers, testing Apple’s ability to maintain ecosystem integrity amid mounting pressure to accommodate regional demands without fragmenting its worldwide model. Developers anticipate a more competitive landscape as implementation looms, potentially lowering consumer prices and spurring innovation in Latin America’s largest market.
