Preventive measure orders company inform users about product purchase options outside Apple store.
A Federal District court has overturned a preventive measure imposed by the General Superintendence of the Administrative Council for Economic Defense (SG-CADE) against Apple over the last week.
Judge Eduardo Santos da Rocha Penteado of the 14th Federal Court described the measure imposed by the superintendency against Apple as “disproportionate” and “unnecessary.” The CADE declined to commented, while people familiar with the matter say the Federal Specialized Prosecutor’s Office intends to appeal the decision.
Last week, the antitrust regulator’s technical department initiated proceedings against Apple to investigate suspicions of abuse of a dominant position. In a preventive measure, it ordered the company to allow apps to inform users about product purchase options outside Apple Store.
According to the judge, the measures imposed by the antitrust regulator “significantly and structurally alter Apple’s business organization.” He noted in his decision on Thursday (5) that “the absence of direct competitors in the iOS ecosystem, as has been recognized by the antitrust regulator, weakens the argument for urgent implementation of such changes.”
The case was brought to the CADE in 2022 following a complaint by the online marketplace Mercado Libre. The company alleged that Apple was abusing its dominant position in the app distribution market for iOS devices by imposing numerous restrictions on in-app purchases for app developers. The CADE’s superintendency is also investigating allegations of tying sales practices by Apple.
The preventive measure would allow developers and iOS users freedom of choice regarding distribution channels and payment processing systems for in-app purchases. The antitrust regulator gave Apple 20 days to comply with the preventive measure, with a daily fine of R$250,000 ($41,000) for non-compliance after that period.
Source: Valor International
