Why did Apple agree to these changes?

Apple agreed to these changes as part of an antitrust settlement with CADE, Brazil's competition regulator. CADE had launched an investigation after a complaint from MercadoLibre, arguing that Apple's previous policies limited competition.

Are these changes unique to Brazil?

No, these changes largely mirror those Apple introduced in the European Union under the Digital Markets Act. This indicates a growing global trend of regulators pushing for more openness in digital ecosystems.

Will apps be cheaper now?

It's possible. With developers potentially paying lower fees by using alternative payment methods or app stores, some of those savings could be passed on to consumers through lower app prices or in-app purchase costs. However, this is not guaranteed and will depend on market competition.

How long will this agreement last?

The agreement between Apple and CADE is set for a duration of three years from its effective date in early 2026, with provisions for potential extensions or reviews.

Image: courtesy of Thenextweb

techJune 19, 2026By Veridact EditorialUpdated Jun 19

Apple Opens iOS to Rival App Stores and Payments in Brazil After Antitrust Settlement

Apple has begun allowing alternative app stores and third-party payment methods on iOS devices in Brazil, following a December 2025 antitrust settlement with the country's competition regulator, CADE. The changes, which took effect in early 2026 with iOS 26.5, largely mirror the concessions Apple made in the European Union under the Digital Markets Act. This move represents a significant shift in Apple's long-standing policy of maintaining a closed ecosystem, driven by regulatory pressure in a major global market.

What to Expect

Brazilian iPhone and iPad users will now find a more open digital environment. Developers can distribute their applications through alternative app marketplaces, rather than being restricted solely to Apple's App Store. This means new app stores, potentially offering different selections or pricing models, can emerge. Crucially, developers are also permitted to use third-party payment processors for in-app purchases, or even direct users to external websites to complete transactions, bypassing Apple's own payment system.

Apple has confirmed that these changes are accompanied by new fee structures. While the specifics were not fully detailed in the immediate announcement, similar regulatory changes in other regions have seen Apple introduce a 'core technology fee' for apps distributed outside its own store, alongside reduced commissions for external payment processing. This indicates that while developers gain more freedom, Apple still intends to capture a portion of the revenue generated within its ecosystem, albeit through different mechanisms. The agreement with CADE is set to last three years, which suggests a period of monitoring and potential adjustments as the new market dynamics unfold.

Key Context

The path to this settlement began in 2022 when MercadoLibre, a major Latin American e-commerce and fintech company, filed a complaint with Brazil's Administrative Council for Economic Defense (CADE). MercadoLibre argued that Apple's strict control over its App Store and payment systems stifled competition and innovation, particularly for services like its own Mercado Pago. This initiated a three-year antitrust investigation by the Brazilian regulator.

In July 2025, CADE's General Superintendence formally recommended that Apple be convicted of antitrust violations. Faced with a potential adverse ruling, Apple entered into a Termo de Compromisso de Cessação (TCC), or cease-and-desist agreement, with CADE on December 29, 2025. This agreement compelled Apple to implement the changes, with a deadline of 105 days from the approval date, meaning they were active by early April 2026.

The regulatory pressure in Brazil is not an isolated incident. Regulators worldwide have increasingly scrutinised the market power of tech giants like Apple. The European Union's Digital Markets Act (DMA), which came into full effect in March 2024, imposed similar requirements on Apple to open its iOS ecosystem to alternative app stores and payment systems. CADE Commissioner Victor Fernandes explicitly stated that the Brazilian proposal aligns with these broader international efforts to introduce more competition into Apple's mobile ecosystem.

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Historical Patterns

Apple has historically maintained one of the most tightly controlled digital ecosystems in the tech industry. For years, the company has argued that its 'walled garden' approach is essential for user security, privacy, and a consistent user experience. This philosophy has meant that all apps on iOS devices had to be distributed through the App Store, and nearly all in-app purchases were processed using Apple's payment system, subject to a commission that typically ranged from 15% to 30%.

This model has been immensely profitable for Apple, generating billions in revenue from its Services division. However, it has also placed Apple at the center of numerous antitrust complaints and lawsuits globally. High-profile cases, such as the legal battle with Epic Games over Fortnite, have challenged the legality of Apple's App Store policies, albeit with mixed results in different jurisdictions. Regulators in South Korea, the Netherlands, and Japan have also pushed for changes to Apple's payment policies, often forcing the company to allow alternative payment methods in specific contexts or app categories.

The settlement in Brazil, following closely on the heels of the DMA in Europe, indicates a clear pattern: the era of Apple's absolute control over its iOS ecosystem is gradually eroding under concerted international regulatory pressure. While Apple has consistently pushed back against these changes, citing security and user experience concerns, the growing number of countries demanding openness suggests a systemic shift in how platform owners are expected to operate.

This settlement holds significant implications, extending beyond Brazil's borders. For Apple, it represents another crack in its highly lucrative 'walled garden.' While Brazil is not the largest market globally, it is substantial, and the precedent set here could embolden regulators in other countries to pursue similar actions. Any erosion of Apple's commission-based revenue model, even if partially offset by new fee structures, could impact its Services growth, a key driver of its valuation in recent years.

For developers, particularly smaller ones and those in Brazil, this opens up new avenues for distribution and potentially more favorable economic terms. They might be able to reach users without paying Apple's traditional commission, or they could experiment with different pricing strategies through third-party payment processors. This could foster greater innovation and competition within the Brazilian app market, as new services and business models become viable.

Consumers in Brazil stand to gain from increased choice and potentially lower prices. With more app stores and payment options, developers might pass on savings from reduced fees, or competition could drive down app and in-app purchase costs. However, there are also questions about potential fragmentation of the user experience and whether the security and privacy protections, often cited by Apple as reasons for its closed system, will be maintained across alternative platforms.

Ultimately, this is a test case. How the market evolves in Brazil, how developers adapt, and how Apple manages its new fee structures will be closely watched by regulators, developers, and consumers in other parts of the world. It signals a potential future where digital platforms face increasing mandates to foster competition, rather than simply dominating it.

Potential Outcomes

Analysis

1. Increased Competition and Innovation in Brazil: The most direct outcome could be a surge in new app stores and diverse payment solutions within Brazil. This might lead to lower prices for consumers and greater revenue retention for developers, fostering a more dynamic local app economy. New Brazilian-specific apps and services, previously hindered by Apple's fees, could find a viable path to market. This would validate CADE's intervention and potentially serve as a model for other emerging markets.

2. Limited Real-World Impact Due to New Fee Structures: Apple's new fee models, such as core technology fees or reduced commissions, could still make it economically challenging for many developers to fully bypass the App Store's revenue share. If the new fees are perceived as too high, or if the operational complexities of managing multiple distribution channels outweigh the benefits, developers might continue to rely primarily on Apple's App Store. This would mean that while the option for alternatives exists, their practical adoption remains limited, leading to calls for further regulatory adjustments.

3. Global Ripple Effect and Intensified Regulatory Pressure: The Brazilian settlement, combined with the EU's DMA, could accelerate similar antitrust investigations and regulatory actions in other countries, particularly in regions where Apple holds significant market share. This could force Apple to adopt a more globally consistent, open approach to its iOS ecosystem, moving away from a country-by-country adaptation strategy. Such a scenario would represent a fundamental shift in the economics and operational model of major digital platforms, with long-term consequences for Apple's Services revenue and overall business strategy.

Timeline

2022

MercadoLibre Files Complaint

MercadoLibre initiates an antitrust complaint with Brazil's Administrative Council for Economic Defense (CADE), alleging Apple's App Store policies stifle competition.

2025-07

CADE Recommendation

CADE's General Superintendence formally recommends convicting Apple of antitrust violations after a three-year investigation.

2025-12-23

CADE Approves Settlement

Brazil's Administrative Council for Economic Defense (CADE) approves Apple's proposed settlement agreement.

2025-12-29

Agreement Signed

Apple enters into a Termo de Compromisso de Cessação (TCC), or cease-and-desist agreement, with CADE.

2026-04

Changes Take Effect

Apple implements the required changes, allowing alternative app stores and third-party payment methods on iOS in Brazil, with iOS 26.5.

Frequently Asked Questions

iPhone and iPad users in Brazil can now download apps from alternative app stores, not just Apple's App Store. Developers can also offer alternative ways to pay for in-app purchases, potentially outside of Apple's own payment system.

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