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Apple opens up App Store to new competition in Brazil

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Why This Matters

Apple's decision to open up the App Store to alternative app stores and external payment processing in Brazil signifies a major shift towards regulatory compliance and increased competition within the iOS ecosystem. This move not only challenges Apple's traditional control but also offers developers more flexibility and potentially better revenue options, impacting the global app marketplace and consumer choice.

Key Takeaways

In Brief

Apple announced on Thursday that developers in Brazil are now allowed to distribute their iOS apps through alternative app stores and process payments for digital goods and services outside the App Store.

The changes, which are part of Apple’s agreement with Brazil’s competition regulator Conselho Administrativo de Defesa Econômica, or CADE, loosen Apple’s rules in yet another market, following similar revisions in the EU and Japan.

The move marks another crack in Apple’s long-held control over the iOS app ecosystem, which has been forced to open up by regulators and, in some cases, via legal battles. In the U.S., for example, Apple now permits developers to direct users to external payment options as a result of the court’s decision in the Epic Games lawsuit against the iPhone maker.

The updates in Brazil’s market will include the introduction of new protections, including a notarization process for iOS apps distributed outside the App Store, authorization requirements for alternative app marketplaces, and other rules designed to protect children from inappropriate content and scams, Apple said.

The company also updated Attachment 12 of its Apple Developer Program License Agreement to specify terms for iOS apps in Brazil, which will use the Core Technology Commission (CTC) fee structure. This 5% CTC fee had replaced the older Core Technology Fee (CTF) in January as part of Apple’s revised business terms in the EU. It applies to apps distributed from the App Store, via the web, and/or alternative marketplaces.

In Brazil, developers will need to agree to the latest update of the license agreement by July 6, 2026, Apple noted.