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Epic accuses Apple of sidestepping App Store antitrust deal in Brazil

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Why This Matters

The dispute highlights ongoing concerns about Apple's compliance with antitrust agreements and its impact on app developers and consumers in Brazil. It underscores the broader challenge of ensuring fair competition and transparency in digital marketplaces, which could influence future regulations and industry practices worldwide.

Key Takeaways

Apple has until Monday to respond to a complaint Epic Games filed with Brazil’s antitrust watchdog, where it accuses the company of adopting restrictive interpretations of its obligations under a recent App Store antitrust deal in the country. Here are the details.

A bit of background

Two months ago, Apple announced that developers were now allowed to distribute apps through alternative app marketplaces in Brazil.

The change came as part of a settlement resolving a years-long antitrust investigation that began after Latin American e-commerce giant MercadoLibre filed a complaint over Apple’s App Store rules.

Under the new terms, developers in Brazil can distribute iOS apps through alternative app marketplaces, and offer payment methods outside Apple’s IAP system.

Apple also introduced a new commission structure, including a 5% Core Technology Commission on digital goods and services sold through apps distributed outside the App Store. You can learn more about that structure here.

Epic challenges Apple’s implementation

As reported today by O Globo (via MacMagazine), Epic recently filed a petition with CADE, Brazil’s antitrust watchdog, accusing Apple of creating “structural, technical, and access barriers” that undermine the practical viability of alternative app distribution.

Epic says that while Brazil’s new terms apply only to iOS apps, Apple’s deal with CADE “clearly covers iPadOS.”

The company is also reportedly pushing back against so-called “scare sheets” that discourage users from installing apps outside the App Store, as well as the current installation process, which it says requires nine steps, compared with six steps under Apple’s current implementation in Europe.

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