CADE opens Apple's App store for use by competitors

Last Monday (25), the General Superintendence of the Administrative Council for Economic Defense (SG/CADE) initiated administrative proceedings against Apple, according to publication in the Official Gazette of the Union nº 227 of Tuesday (26), determining opening your App Store to competing app developers. The preventive measure adopted stipulates a period of 20 days for the company to implement the necessary tools to make the platform accessible, subject to a daily fine set at R$250,000 if it fails to comply with the determination.

Facts

The variety of provisions contained in the Terms & Conditions (T&Cs) that Apple imposes in order to regulate the functioning of its operating system for mobile devices (iOS), resulted in Cade's investigation into anti-competitiveness and actions harmful to the market, due to the practice of abuse of position dominant, on the occasion of administrative proceedings filed by Mercado Livre against Apple in December 2022.

“Practices of abuse of dominant positions involving digital ecosystems of mobile devices are the target of several international investigations, also attracting the attention of competition authorities in other countries. Cade is aware of this concern”informed the institution.

_{Smartphone with open padlock, free concept (Photo: reproduction/ikakot/Freepik)}

International trend

In line with the international regulatory trend, CADE's decision intervenes more rigorously in the practices of large technology companies. Several jurisdictions, including the European Union and the United States, have in recent years investigated and implemented rules aimed at limiting the power of platforms. By opening the App Store to competition, which could result in a greater diversity of applications made available to users, the agency's decision brings the possibility of better prices and an end to anti-competitive conduct: “The action aims to protect collective well-being, public interest and free competition in the market and is foreseen in legislation”declared the organization in a note.

_{International Seminar: Regulation and Competition in the Digital Market 2024, held on November 18th and 19th, 2024 by CADE in partnership with the Escola Superior do Ministério Público da União (Photo: reproduction/CADE/Gov.br)}

At an event held by CADE, in partnership with the Escola Superior do Ministério Público da União (ESMPU), on regulation and competition in the digital market, prosecutor Waldir Alves, representative of the Federal Public Ministry (MPF) at Cade, highlighted the topic addressed at the event, categorically emphasizing the contributions of the experts present at the event based on specific analyzes of current challenges, also supporting essential discussions about the future of the digital market: “Our main objective here was to make an enriching debate public. We reflect on how digital markets have promoted democratization, but can also be used for illicit purposes”declared the prosecutor who also coordinated the seminar. The event was also attended by CADE's general superintendent, Alexandre Barreto de Souza (in the red tie in the photo above).

As regulations apply greater rigor to the routine of technology companies, similar pressures that follow the path of public well-being tend to become a relevant factor for market consumption, according to content exposed in the “duel of the titans” of the digital world, in procedural ways. Apple has not yet commented on the case. However, in similar events in other countries, it collaborated with the measures applied. In its “Commercial Compliance Policy”, the company provides the following information: “As a global technology company, Apple is committed to complying with all applicable trade regulations in every country in which we operate, including, but not limited to, all export and sanctions regulations. It is our policy to continually adhere to these regulations in all activities in which we engage.”

However, the procedural saga continues, awaiting a decision on the merits by the antitrust body, keeping the preventive measure valid until the result.

Featured Photo: Facade of the CADE headquarters building in Brasília (Reproduction/EBC/Gov.br)