Brazil Orders Apple to Open its iOS Ecosystem

A Brazilian federal court has ordered Apple to open its iOS ecosystem. In the ruling, the judge gave Apple 90 days to allow third-party app stores and sideloading or face daily fines reaching BRL$ 250,000 (almost $44,000).

The ruling stems from a complaint by Mercado Livre, a leading Latin American e-commerce platform. In 2022, Mercado Livre accused Apple of monopolistic practices - specifically, restricting app distribution and enforcing its own payment system for in-app purchases.

Brazil’s antitrust regulator, the Administrative Council for Economic Defense (CADE), had previously ruled that Apple must allow alternative in-app payment methods. While Apple temporarily circumvented this directive via a judicial injunction, the latest court decision forces the company to either comply or appeal to maintain iOS’s closed ecosystem.

The judge responsible for the case pointed out that Apple has already adapted to similar regulations in other markets without significant harm to its business model. He also emphasized that iOS’s restrictive policies could stifle competition by limiting third-party app sales and hindering new market entrants.

The decision reflects a broader global trend of increasing regulatory scrutiny on major tech companies. With Brazil joining the EU in enforcing such measures, Apple faces mounting pressure to adjust its policies while balancing concerns over user privacy and security.

For businesses and developers in Brazil, this ruling could create new opportunities for app distribution and monetization, reducing reliance on the App Store and its associated fees. However, it also raises security concerns, as a more open app ecosystem necessitates stronger safeguards against potential threats.