A Brazilian federal judge mandated Apple to enable third-party app stores and sideloading operations on iOS devices within 90-day timeframe for Brazil or face daily fines exceeding $40,000. Non-compliance will lead to daily penalties exceeding $40,000. The decision follows a similar requirement imposed on Apple in the European Union under the Digital Markets Act.
Judge Pablo Zuniga from the Federal Regional Court supported the original CADE Administrative Council for Economic Defense injunction. The antitrust authority set an initial 20-day compliance deadline but the court expanded this to 90 days for technical development. The court added that Apple maintains its business model after successfully adapting to other market areas without major disruptions.
Mercado Livre, a Latin American e-commerce firm, filed its anti-competitive practice complaint against Apple in 2022. Mercado Livre presented evidence that Apple's payment method and app distribution rules restrain market competition and consumer freedom to choose.
The antitrust agency in Brazil launched an official investigation based on the complaint filed. The November 2024 decision from CADE ordered Apple to allow developers to distribute apps outside of the App Store along with alternative payment options. Apple tried to resist the decision before getting its ruling temporarily suspended. The return of this requirement from Judge Zuniga gives Apple three months to adjust their app procedures.
The company plans to appeal the court decision because it believes sideloading threatens security and privacy. The company insists that third-party app stores create user risks because they enable access to malware and false applications. The Brazilian court determined that Apple willingness to follow EU guidelines makes its opposition toward Brazilian requirements inconsistent.
The court directive will transform Brazil into the second major app market after the EU that requires iPhones to support additional third-party software stores. The court decision might precede similar regulatory actions inside and outside Brazil.
Apple now needs to decide how to modify iOS framework rules in Brazil because it needs to operate under a 90-day timeline during its legal appeal