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Epic Games and Coalition for App Fairness slam new App Store terms in Brazil

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Why This Matters

The new App Store terms in Brazil mark a significant shift in Apple's approach to app distribution and payments, allowing developers to use alternative marketplaces and payment methods. This move sparks debate over fair competition and the impact on consumers and developers, highlighting ongoing tensions between Apple’s policies and industry calls for openness. The industry and consumers alike stand to benefit from increased competition and potentially lower fees, but concerns remain about the fairness and transparency of these new rules.

Key Takeaways

Following Apple’s announcement that developers will be able to distribute apps through alternative marketplaces and use alternative payment methods in Brazil, Epic Games and the Coalition for App Fairness criticized the company’s new terms. Here are the details.

Apple under fire over new App Store rules and fees in Brazil

Earlier today, Apple announced that app developers will have the option to offer in-app and off-app external purchases in addition to Apple’s own IAP system following an agreement with CADE, the country’s competition watchdog.

Under the new terms, developers who remain in the App Store and use Apple’s IAP system will pay a 5% processing fee, plus an App Store commission ranging from 10% to 21%. Those using a third-party in-app payment system will pay a commission between 10% and 21%, while apps that link to external payment options will pay a commission between 10% and 18%.

Developers distributing apps through alternative marketplaces, meanwhile, will pay a 5% Core Technology Commission on sales of digital goods and services.

In essence, Apple’s new terms in Brazil closely mirror those introduced in Japan last year, while differing significantly from the rules in effect in the European Union.

The company has repeatedly argued that its approach in Japan offers better terms than those required under the EU’s Digital Markets Act. Apple is now making the same case for the terms in Brazil.

Not everyone agrees with that assessment, however. In a statement to 9to5Mac, the Coalition for App Fairness (whose founding members include Basecamp, Deezer, Epic Games, Match, ProtonMail, Spotify, and Tile, among others) said:

“The terms Apple announced today following CADE’s investigation don’t create an open and competitive app ecosystem in Brazil. Developers who choose to distribute their apps through alternative stores or offer payments outside of the App Store are penalized for doing so with high fees and overbearing tracking requirements. The policy continues to guarantee Apple an unfair advantage and prevents innovation in app stores with a significant new tax on commerce.”

Epic Games similarly criticized the new terms, saying:

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