iOS in Brazil: Apple allows foreign app stores Apfelpatient

What the EU enforced with the Digital Markets Act is now reaching South America: Apple must open iOS in Brazil to alternative app marketplaces and external payment methods. This decision follows an agreement with the competition authority CADE, ending a three-year antitrust investigation. Apple is implementing the requirements – but at the same time warns of new risks to security, data privacy, and especially for children.

The starting point was a complaint filed in 2022 by the Latin American e-commerce platform MercadoLibre. The accusation: Apple was hindering competition on iOS by requiring users to use its own App Store and payment processing system. After three years of proceedings, the Brazilian competition authority CADE (Conselho Administrativo de Defesa Econômica) approved a commitment proposed by Apple at the end of December 2025 and gave the company a 105-day implementation period. This period has now expired: As of today, the new options are available as part of iOS 26.5. For Apple, a key selling point is also at stake, as the company regularly cites the billions of dollars in fraudulent transactions that the App Store blocks each year – a safeguard that no longer applies in this form outside of its own store.

How the agreement was reached

The path to this point was fraught with conflict. In mid-2025, CADE upheld a preliminary injunction that would compel Apple to open up to alternative distribution channels and payment links – accompanied by fluctuating court rulings, with sometimes Apple and sometimes the opposing side prevailing. The case was finally brought to a close by a so-called Termo de Compromisso de Cessação, a common settlement instrument in Brazil that allows companies to end legal proceedings by agreeing to enforceable conditions.

The agreement runs for three years, starting from the date the new conditions become binding for developers, and can be extended or reviewed if competition targets are not met. Violations can be punished with fines of up to 150 million reais, and the proceedings can be reopened. In return, Apple withdrew pending lawsuits against previous protective measures taken by the agency. Another condition concerns the tone: Apple must keep security warnings about sideloading or third-party payments neutral and factual and may not use them as a deterrent obstacle in the user experience.

Alternative app marketplaces – Notarization as a filter

According to Apple, the App Store remains the central and safest place to obtain apps in Brazil. However, developers will also be allowed to distribute their iOS apps through alternative marketplaces. These marketplaces must be authorized by Apple and meet ongoing requirements. Apps downloaded from outside the App Store, however, do not undergo the App Review process – Apple considers this an increased risk of fraud, abuse, and content that would not be permitted in the official store.

As a minimum security measure, Apple is introducing a basic review process called Notarization for all iOS apps. This combines automated checks with human review and is designed to ensure that an app functions as promised and is free of known malware, viruses, or other security threats. However, Apple explicitly states that Notarization is less comprehensive than the regular App Review. The continued importance of consistent malware protection is demonstrated by the measures available to secure Apple devices against malware – an aspect that is gaining in significance with the opening up of Apple.

New payment methods in App Store apps

Developers are also getting more flexibility when it comes to payments. Within the App Store, users in Brazil can continue to use Apple In-App Purchase to buy digital goods and services, manage subscriptions, request refunds, and view their payment history. In addition, developers can now offer an alternative payment method directly within the app or link to a website to complete a transaction.

These alternative payment options must always appear alongside Apple In-App Purchase so that it remains clear when a payment is processed through Apple. Users who choose Apple In-App Purchase retain familiar features such as refund support, subscription management, and the "Report a Problem" function. Only transactions processed through Apple In-App Purchase appear in the purchase history and subscription management. With alternative payment methods or when switching to an external website, Apple cannot issue refunds and can only provide limited assistance in cases of problems, fraud, or scams. Furthermore, payment information may need to be shared with additional parties, which introduces new privacy and security risks.

An overview of the new commission rates

In parallel with the new distribution and payment methods, Apple is adjusting the terms and conditions for iOS apps in Brazil. One fundamental principle remains unchanged: a commission continues to be charged exclusively on the sale of digital goods and services. Developers who do not sell digital goods will continue to pay no commissions or fees. The economic leverage the store represents for Apple is evident when looking at the App Store ecosystem, which has generated $1.4 trillion in revenue.

Fee	Height
App Store commission	10 % for most developers – including participants in the Small Business Program, the Video Partner Program and the Mini Apps Partner Program, as well as subscriptions after the first year – otherwise 21 % on digital goods and services
Apple Payment Processing	Additional 5 % when using Apple In-App Purchase
Store services commission	15 % on purchases made through a website linked by the app; reduced to 10 % for the aforementioned programs and for subscriptions after the first year.
Core Technology Commission	5 % on the sale of digital goods and services in apps distributed outside the App Store – including paid apps

According to Apple, the Core Technology Commission is intended to compensate developers for the tools, technologies, and services they use to build and distribute their iOS apps. Ultimately, the company says, developers selling digital goods and services in Brazil will pay the same or less than they do now.

What's changing for child protection

Apple's biggest reservation concerns the protection of younger users. Parents expect apps and games in the Kids category of the App Store to be age-appropriate, protect children's data, and limit certain actions through security prompts. The new distribution and payment methods, however, could expose children to additional risks. Apple points to similar regulatory interventions in Europe and Japan that made previously prohibited apps available on iOS – including pornography apps.

In order to at least maintain some safeguards, Apple, together with regulators in Brazil, has established several guidelines:

Apps in the Kids category are not allowed to link to websites in the App Store to complete a transaction.
For users under 18 years of age, all App Store apps with alternative payment processing must enforce parental approval before a purchase is possible.
App Store apps for users under 18 years of age are not allowed to link to external websites for transactions.
Apple is also working on a new interface that will allow parents to monitor and approve purchases outside of Apple In-App Purchase.

Regardless of the distribution channel, developers must still specify age ratings for their apps. Apple also points to existing tools such as child accounts, web content filters, app restrictions, screen time, family sharing, communication safety, and communication limits. Apple's recent expansion of its parental controls with new features also points in this direction.

Brazil follows a global pattern

The decision is part of a series of similar interventions. In the EU, the Digital Markets Act has already forced Apple to use alternative marketplaces and accept external payments; Japan followed suit with its own smartphone legislation. Brazil is now the third major market to break up the closed iOS model – and the pattern is strikingly similar: opening up distribution channels, new fee structures like the Core Technology Commission to safeguard Apple's revenue base, and a security narrative that emphasizes the risks of this openness.

For developers, this means more options, but also more complexity: those who use an alternative marketplace or external payments relinquish some of Apple's protection mechanisms. For users, the practical benefit depends on whether relevant providers actually adopt these new methods. In the EU, the response to alternative stores initially remained limited – whether Brazil will be different will likely depend primarily on large local platforms like the complainant MercadoLibre.

Apple's closed model continues to lose ground

With Brazil, the number of regions where Apple has to relinquish its control over app distribution and payments is growing. The agreement with CADE is for three years, and Apple has announced it will continue discussions with regulators about expanding safeguards. The direction is clear: the once monolithic App Store model is disintegrating market by market into regionally specific rules – and each new agreement provides a template for the next. (Image: Apple)

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