Apple is presently dealing with notable legal challenges, comprising a class action lawsuit initiated by Proton in the U.S. and a federal antitrust case in New Jersey that a judge has chosen not to dismiss. Moreover, Brazil’s antitrust authority, CADE, has proposed sanctions against Apple for its restrictive behaviors concerning the iPhone’s NFC chip and its stipulation for developers to utilize Apple Pay.
CADE’s General Superintendence has indicated that Apple’s conduct creates “artificial barriers” for rivals and obstructs innovation within the iOS ecosystem, which Apple completely oversees. The agency contends that these practices complicate market entry for emerging players and restrict options for both developers and users.
This investigation began following a complaint from MercadoLibre, a prominent e-commerce platform in Latin America, which alleged that Apple was exploiting its market dominance by curbing the sale of third-party digital services and enforcing the utilization of its payment system for in-app purchases. CADE determined that these limitations constitute an abuse of economic power under Brazilian legislation, maintaining Apple’s dominant status and hindering competitors’ ability to function.
CADE has asked its internal tribunal to impose a financial sanction on Apple and enforce remedies to address the antitrust violations, which may involve requiring access to Apple’s NFC hardware and payment systems, akin to regulations imposed by the EU under the Digital Markets Act.
In response, Apple defended its practices, voicing concerns that CADE’s suggested actions could adversely affect the user experience it has developed over the years. The company highlighted that the App Store has offered a safe marketplace for Brazilian consumers and has aided local developers. Apple asserts that it does not possess a dominant position in Brazil, referencing Android’s greater market share, and claims that its NFC platform is accessible to third parties, albeit under its own conditions.
