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 , 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.
According to O Globo, Epic adds that Apple’s original installation process in Europe required 15 steps, but after the company was compelled to reduce it to six, “download abandonment rates fell from 65% to 25%.”
Finally, Epic tells CADE that Apple’s reporting requirements “go far beyond what is necessary to calculate fees,” and that this allows the company “to monitor competitors’ business models.”
O Globo says CADE has given Apple until Monday to file its response. Apple has not commented publicly on the matter.
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