Brazil Orders Apple to Allow Sideloading of Apps

According to a report in Valor Econômico, as seen by 9to5Mac, Brazil has given Apple a 90-day ultimatum to permit users to bypass the App Store and install apps from external sources. This ruling comes after similar orders were issued in Europe and other regions, which were referenced by the Brazilian court. Judge Pablo Zuniga stated, “[Apple] has already complied with similar obligations in other countries, without demonstrating a significant impact or irreparable damage to its business model.”

Background of the Case

Towards the end of last year, Brazil’s antitrust regulator, CADE, ordered Apple to enable users to download apps and make purchases from outside the App Store, with a deadline of 20 days and potential fines for non-compliance. However, Apple appealed the decision, citing the difficulty of implementing the changes within the given time frame. The court accepted Apple’s appeal, deeming the injunction “disproportionate and unnecessary,” thus granting Apple more time but scheduling a public hearing in Brazil.

Current Ruling and Implications

Following an appeal by CADE, the court has now ordered Apple to permit sideloading and the use of third-party app stores within the next three months, under the threat of fines. The litigation was initially launched by the Latin American e-commerce firm Mercado Libre, which complained about the requirement for developers to pay significant commissions through the App Store. This was later supported by other developers, including Match and Epic Games.

Apple’s Response

An Apple spokesperson expressed to Valor Econômico that the company “believes in vibrant and competitive markets,” but argued that the imposed changes would compromise the “privacy and security” of iOS users. Apple intends to appeal the decision.