Apple Allows Alternative App Stores in Brazil Following Regulator Agreement
Quick Look
- Apple is now permitting alternative app stores on iOS in Brazil, following an agreement with the CADE competition regulator.
- Developers will benefit from a lower 5% Core Technology Fee for in-app purchases on these third-party marketplaces, which require Apple approval and a 'Notarization' review process.
AI-generated summary
Why It Matters
Apple is implementing changes to its app distribution model in Brazil, allowing alternative app stores following regulatory pressure from CADE.
Apple is beginning to allow alternative app stores for iOS customers in Brazil. We learned in December that the company had reached an agreement with the Conselho Administrativo de Defesa Econômica (CADE), the Brazilian government's competition regulator, around how the third-party marketplaces would work domestically.
The real draw of third-party mobile marketplaces for developers is a reduced fee structure surrounding in-app purchases. The Core Technology Fee for apps distributed outside the App Store will be 5 percent. Any alternatives to the App Store will have to be approved by Apple, and apps sold through them will face a review process called Notarization. This review will be less comprehensive than the usual App Store review while still ideally catching instances of malware, viruses or other security threats.
Open Questions
- Will other countries follow Brazil's lead?
- How will Apple's Notarization process evolve?
