Apple has not only been in trouble with the competition authorities in the USA and the EU, but also in Brazil for some time now. Now a case brought by e-commerce provider MercadoLibre in 2022 has progressed further – with a decision against Apple. The technical department of Brazil's competition watchdog CADE (Conselho Administrativo de Defesa Econômica) ruled that Apple's App Store business model could constitute “anti-competitive practices”. As a result, Apple could now face both fines and changes to its ecosystem.

CADE's technical department writes, among other things, that Apple's way of organizing the App Store “artificially maintains” its dominance. This includes, for example, the prevention of alternative payment methods in the App Store. It is still unclear how high a corresponding fine would be for Apple. Meanwhile, five-figure sums were being discussed last year – per day. The company is also to be forced by CADE to cease its anti-competitive behavior.

Apple stated in a commentary that it had created a “secure and trusted marketplace” in Brazil for more than 16 years with the App Store, on which Brazilian companies had conducted successful business. CADE's measures threatened to “damage the experience that our users love”. The company also sees risks to privacy and security. The company wants to continue to work with CADE to “defend the rights of users and developers on our platform”.

Meanwhile, Apple has also suffered a legal defeat in the USA. In the proceedings concerning a possible iPhone monopoly brought by the US Department of Justice (DoJ), Apple did not succeed in having the lawsuit dismissed. A motion to dismiss was denied by the US District Judge in Newark, New Jersey. Apple's lawyers had claimed that the lawsuit was based on false facts and was unlawful.

The DoJ's lawsuit focuses on Apple's requirements for developers and the obligation to pay commissions for App Store sales. The officials also believe that Apple is blocking third-party services and hardware to protect its devices.

(bsc)