The Administrative Council for Economic Defense (CADE) of Brazil, has issued an interim measure against Apple as part of an ongoing investigation into alleged anticompetitive practices. The Office of the Superintendent General at CADE (SG) launched an administrative proceeding on November 25, 2024, to examine Apple’s potential abuse of dominant market position.
The investigation focuses on whether Apple has created artificial barriers that hinder the entry and growth of competitors in Brazil’s digital market. The alleged violations include tying sales and imposing restrictive clauses in Apple’s Terms & Conditions regarding the use of its iOS operating system on mobile devices.
CADE’s inquiry aims to determine whether Apple’s practices may have led to the foreclosure of the Brazilian market for mobile app distribution, digital goods and services, and in-app payment processing systems.
Following the initiation of the administrative proceeding, Apple is required to submit a defense. The discovery phase will enable the Office of the Superintendent General to assess the evidence before either issuing a guilty verdict or dismissing the case. If found in violation, the matter will be forwarded to the CADE Tribunal for a final ruling.
Given the severity of the case, CADE has imposed an interim measure to ensure fair competition in the digital marketplace. This ruling allows developers and iOS users the freedom to select their preferred distribution channels and payment processing systems for in-app purchases. Apple has been given 20 days to implement the required mechanisms to comply with this directive. Failure to do so will result in a daily fine of BRL 250,000 ($43,090).
This initiative underscores CADE’s commitment to safeguarding market competition, consumer welfare, and the public interest, as outlined in Law 12529/2011. The council has the authority to issue interim measures when there is substantial evidence that a company’s actions could cause irreparable harm to market conditions or compromise the effectiveness of the proceedings.
Apple’s alleged anticompetitive behavior aligns with concerns raised by international regulatory authorities regarding dominant digital ecosystems. CADE remains vigilant in monitoring such practices to ensure fair competition in the Brazilian market.
While managing an operating system’s functionality is not inherently illegal, CADE’s primary concern is the restrictive nature of Apple’s contractual clauses, which could undermine competition and economic fairness. The outcome of this case may have significant implications for digital market regulations and competition law enforcement worldwide.
