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Anti-Competitive Practices: Mercado Livre denounces Apple over App Store payment rules

  • January 22, 2023
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Inquiry free market, Administrative Council for Economic Protection (Cade) The Department of Justice has initiated an administrative investigation into the alleged practice of abusing its position in the

Anti-Competitive Practices: Mercado Livre denounces Apple over App Store payment rules

Inquiry free market, Administrative Council for Economic Protection (Cade) The Department of Justice has initiated an administrative investigation into the alleged practice of abusing its position in the distribution market for applications for operating system devices iOS through an Apple.

The allegations filed by Cade Mercado Livre relate to Apple abusing its dominant position in the app distribution market for devices using the iOS system, where the company imposes a number of restrictions on in-app purchases, and prevents or restricts competitors from entering this market, with a commission on payment shopping in the application carried out in the store, which can reach 30%.

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Mercado Livre is aware that Apple’s sanctions, for which it initiated a lawsuit against the cell phone maker, affect not only Brazil, for example, sales of digital services that use only the company’s own payment processing system.

01/12/2023 at 21:57
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Apple (…) imposes a number of purchase restrictions on developers of applications for digital goods and services, such as video streaming“, excerpt from a complaint filed by Mercado Livre.

According to the Mercado Livre, the rules imposed by Apple hinder the growth of developers outside the company. In its lawsuit, big tech Sulamericana alleges that the restriction imposed by the use of Apple’s payment processing system is allegedly illegal.

Apple has told Cade that it does not have the ability to use any means to prevent Mercado Libre from operating or to harm competition in the country.

The American company is facing clashes around the world for the same reasons, some of which are similar to what is happening in Brazil due to the free market. There are more specific cases, such as Apple’s dispute with Epic Games, in which the smartphone manufacturer sued. publisher removing Fortnite from the app store.

Cade is investigating Apple’s restrictive operations in the country and has already stipulated that by January 27, Apple must provide the requested documents. If this does not happen, the company will receive a daily fine of 5,000 reais, which can be reviewed up to 20 times.


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