The appeal challenges the Conselho Administrativo de Defesa Econômica (CADE) decision, calling it "arbitrary" and claiming it would "drastically threaten" user privacy and security.
The Case So Far
The original ruling, issued in November 2024, gives Apple just 20 days to:
- Permit sideloading (installing apps outside the App Store).
- Lift restrictions on alternative payment methods.
- End anti-steering policies, which block developers from directing users to external payment platforms.
Failure to comply would result in daily fines of R$250,000 (approximately $43,000).
Apple’s Appeal
In its appeal, Apple argues:
- Insufficient time: Apple says the ruling's 20-day timeline is impractical for implementing the necessary technical changes while maintaining security.
- Privacy risks: Allowing sideloading and external payments could expose users to fraud, malware, and reduced privacy protections.
- Lack of urgency: Apple notes that the App Store model has remained unchanged for years, questioning the immediacy of CADE's demands.
Apple maintains that changes like these require careful planning to ensure compliance while safeguarding its ecosystem.
Global Context
Apple's fight in Brazil reflects broader global scrutiny of its App Store policies:
- United States: Apple faced a high-profile lawsuit from Epic Games but largely prevailed.
- European Union: Apple was forced to allow third-party app stores and redesign its commission system.
- Japan: New laws will require Apple to permit third-party app marketplaces starting in 2025.
- UK: The Competition and Markets Authority investigated App Store policies but closed the case in 2024 without a conclusion.
In some regions, Apple has developed alternative marketplaces or new commission models to comply with local regulations.
What’s Next for Brazil?
The Brazilian regulator CADE has yet to respond to Apple’s appeal. The case could set a precedent for how sideloading and payment systems are managed in emerging markets, especially in regions where Apple's ecosystem faces regulatory challenges.
If CADE upholds its ruling, Apple might adopt a version of its EU alternative app marketplace strategy to appease Brazilian regulators while maintaining user trust.
