Brazil orders Apple to allow alternative app stores on iOS within 90 days

Brazil has ordered Apple to allow alternative app stores on iOS within 90 days after a judge reimposed an injunction following an investigation into alleged abuse of its market dominance.

As reported by Valor International, the ruling, which was issued by the Federal Regional Court of the 1st Region (TRF-1), reverses a previous trial decision and supports the Administrative Council for Economic Defense’s (Cade) investigation into Apple’s alleged dominance in iOS app distribution. 

Cade’s injunctions, introduced in November, aim to allow apps to inform users about alternative purchasing options. Apple initially won a court ruling to cancel the restrictions, but on February 5th, a federal judge Pablo Zuniga overturned that decision. 

Closed ecosystem

The judge argued that Apple’s closed system and restrictions on third-party app sales justify regulatory intervention, as keeping things as they are could block competition and prevent new companies from entering the market. The judge said that Apple has allowed third-party app stores in other countries without significant harm to its business. 

Zuniga also extended Apple’s deadline to comply with Cade’s requirements from 20 to 90 days, giving the company more time to implement the changes.

“Apple has already complied with similar obligations in other countries without demonstrating significant impact or irreparable harm to its economic model,” said federal judge Zuniga.

“The implementation of structural changes in operating systems, indeed, requires some planning and technical development, which may demand more time than stipulated in the administrative decision.” 

A vow to appeal

Although the iPhone maker has already been forced to allow third-party app stores on iOS in the EU due to the Digital Markets Act, it plans to appeal the ruling in Brazil. 

“Apple believes in vibrant and competitive markets where innovation can flourish,” it said in a statement to Valor. “We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users. 

“We are concerned that the interim measures proposed by CADE would undermine the privacy and security of our users and intend to appeal today’s decision.”