Epic accuses Apple of sidestepping App Store antitrust deal in Brazil
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.
Apple is facing a complaint from Epic Games, filed with Brazil's antitrust watchdog, alleging that the tech giant is sidestepping the recent App Store antitrust deal in the country. The dispute stems from Apple's announcement two months ago that developers would now be able to distribute apps through alternative app marketplaces in Brazil, as part of a settlement in a long-standing antitrust investigation initiated by MercadoLibre.
The new terms allow developers to distribute iOS apps via alternative marketplaces and use payment methods outside Apple's In-App Purchase (IAP) system, while also introducing a new commission structure with a 5% Core Technology Commission on digital goods and services sold through apps not distributed through the App Store. However, Epic claims that Apple's deal with Brazil's antitrust authority, CADE, applies to iPadOS as well.
The company is also challenging Apple's "scare sheets" discouraging users from installing apps outside the App Store and the current installation process, which it argues is overly complex, requiring nine steps compared to six steps in Europe. Epic argues that Apple's reporting requirements exceed what is needed to calculate fees and that they allow the company to monitor competitors' business models.
CADE has given Apple until Monday to respond to the complaint. Apple has not commented publicly on the matter yet.
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