Apple to Introduce New App Store Fee Structure in Brazil Following Antitrust Settlement

Source: MacRumors

Settlement Overview

Brazilian regulators have approved a settlement that will require Apple to change how the App Store operates on iPhone in the country, including allowing alternative app stores, expanded payment options, and a defined new fee structure.

In a press release, Brazil’s Administrative Council of Economic Defense (CADE) outlined the key points of the agreement:

• Alternative App Stores: Apple must permit the installation and use of third‑party app stores on iPhones sold in Brazil, breaking the current exclusivity model.
• Payment Options: Developers will be allowed to offer alternative payment methods besides Apple’s in‑app purchase system, giving consumers more choice.
• New Fee Structure: A tiered commission model will replace the flat 30 % fee. The exact percentages will depend on the developer’s annual revenue and the type of transaction, with lower rates for smaller developers and certain categories of digital goods.

Background

The settlement follows a multi‑year investigation by CADE into Apple’s alleged anti‑competitive practices in the Brazilian market. The regulator argued that Apple’s control over app distribution and payment processing limited competition and inflated prices for consumers.

Apple had previously contested the investigation, claiming that its policies protect user security and privacy. However, the company ultimately agreed to the settlement to avoid further legal penalties and to maintain its market presence in Brazil.

Implications for Developers

• Revenue Impact: Smaller developers could see a reduction in commission costs, potentially improving profitability.
• Compliance Requirements: Developers will need to update their apps to support alternative payment methods and ensure compatibility with any approved third‑party app stores.
• Legal Certainty: The agreement provides a clear framework for operating in Brazil, reducing the risk of future regulatory actions.

Consumer Benefits

• More Choices: Users will have access to a broader selection of app stores and payment options.
• Potential Price Reductions: Increased competition may lead to lower prices for apps and in‑app purchases.
• Enhanced Transparency: A clearer fee structure could improve consumer understanding of how app pricing works.

Next Steps

Apple has a deadline of 90 days to implement the required changes. CADE will monitor compliance and may impose additional penalties if the company fails to meet the agreed timeline.

The settlement marks a significant shift in Apple’s global App Store strategy, signaling that regulatory pressure can lead to substantial changes in how the tech giant conducts business in individual markets.