In a sweeping move to curb tech monopolies, Brazil’s antitrust authority has mandated that Apple must allow users to download apps outside its proprietary App Store within 90 days or face hefty fines. The decision, announced Wednesday by the Administrative Council for Economic Defense (CADE), marks a pivotal shift in the nation’s efforts to foster competition and empower consumers in the digital marketplace.
CADE’s Crackdown on “Anti-Competitive” Practices
CADE’s ruling follows a two-year investigation into Apple’s business practices, which the agency alleges have stifled competition by locking developers and users into a closed ecosystem. The regulator argued that Apple’s exclusivity requirements—including its 15–30% commission on in-app purchases—harm both consumers, who face inflated prices, and developers, who lack alternative distribution channels.
“Apple’s dominance in app distribution has created an unfair playing field,” said CADE President Alexandre Barreto in a press conference. “This measure ensures innovation, reduces costs, and aligns Brazil with global antitrust trends.” The order requires Apple to implement technical changes enabling sideloading (installing apps from third-party sources) on iPhones and iPads sold in Brazil by early June 2025.
Apple Pushes Back, Cites Security Risks
Apple swiftly condemned the decision, warning that sideloading could expose users to malware and data breaches. “This ruling risks undermining the privacy and security protections our users depend on,” said Apple spokesperson Maria Silva. “We intend to appeal and collaborate with Brazilian authorities to find a balanced solution.”
The tech giant has long resisted similar mandates globally, including the European Union’s Digital Markets Act (DMA), which forced Apple to permit third-party app stores in the EU starting in 2024. However, Brazil’s move goes further by requiring the change nationwide, not just regionally.
Developers and Consumers Celebrate
Brazilian app developers hailed the decision as a victory. “This opens doors for smaller studios to compete without handing Apple a third of their revenue,” said Carlos Mendes, CEO of Rio-based gaming startup PlayZen. Consumer advocacy groups also applauded, noting that prices for subscriptions and digital goods could drop.
Legal Turbulence Ahead
The ruling faced immediate legal challenges. Last week, a preliminary injunction from a lower court sought to suspend CADE’s order, but on Thursday, the Regional Federal Court of the 1st Region (TRF-1) overturned that decision, upholding the antitrust measure. As reported by Valor Econômico, the TRF-1 judge emphasized that “the public interest in maintaining competitive markets outweighs Apple’s individual claims.”
Legal experts warn the battle is far from over. “Apple could escalate this to Brazil’s Supreme Court,” said antitrust lawyer Ana Beatriz Costa. “But CADE’s resolve suggests regulators are prepared for a prolonged fight.”
Global Implications
Brazil’s stance adds momentum to a growing backlash against Big Tech’s gatekeeping. India and South Korea are weighing similar legislation, while the U.S. Justice Department’s ongoing antitrust lawsuit against Apple echoes CADE’s concerns.
For now, all eyes are on how Apple navigates this mandate. Will it comply under protest, as in the EU, or exit the Brazilian market? With over 40 million iPhone users in Latin America’s largest economy, the latter seems unlikely.
What’s Next?
Apple has until June 5, 2025, to implement the changes. Failure to comply could result in fines of up to 10% of its local revenue—a figure that topped $2.3 billion in 2024. As the deadline looms, the outcome could redefine not just Brazil’s app economy but the global power dynamics between tech giants and regulators.
For Brazilian iPhone users, the message is clear: greater freedom—and responsibility—in app choices is on the horizon.