Image source: CADE Brazil
Apple’s antitrust case in Brazil faced a setback when a Federal Justice overturned a regulator’s decision, deeming it “disproportionate,” although appeals are likely.
In 2022, an antitrust complaint was filed against Apple with Brazilian regulator Conselho Administrativo de Defesa Economica, or CADE. Following an investigation, a ruling on Apple’s payment and anti-steering practices was issued, mirroring complaints made in the US.
Shortly after Apple responded to the ruling, a Federal Justice of the Federal District overturned it. This development was reported by Valor Economico and shared by 9to5Mac.
Judge Eduardo Santos da Rocha Penteado of the 14th Federal Civil Court deemed CADE’s ruling “disproportionate” and “unnecessary.” Despite this reversal, Apple still faces legal challenges.
Antitrust regulators are expected to appeal and resubmit the complaint with a revised timeline. The original ruling required Apple to implement external payment options and remove anti-steering practices within 20 days or face significant fines.
The judge who overturned the ruling acknowledged the need for action but believes the lack of competition and the complexity of compliance do not warrant such a tight deadline.
Apple has made changes to its App Store payment systems and anti-steering practices in the US and EU, indicating a similar approach may be taken in Brazil. However, the company is likely to contest the legal proceedings before implementing these changes.