Apple is under fire in Brazil as the country’s antitrust watchdog, CADE, has formally recommended sanctions against the company. The agency accuses Apple of abusing its dominance in the iOS ecosystem by restricting access to the iPhone’s NFC chip and forcing developers to use Apple Pay for in-app transactions. CADE argues that these restrictions harm competition, limit consumer choice, and protect Apple’s market position through artificial barriers.
The recommendation comes as part of an ongoing investigation triggered by a 2022 complaint from Mercado Libre and its Brazilian affiliate, Ebazar.com.br. The e-commerce companies claimed that Apple’s App Store policies unfairly blocked third-party digital service distribution and required the use of Apple’s proprietary payment system, disadvantaging competing services.
CADE Calls Apple’s Practices Anticompetitive
CADE’s General Superintendence concluded that Apple’s conduct violates Brazil’s economic order laws. It said Apple’s policies create unnecessary barriers for new market entrants and restrict options for both developers and users. In particular, the agency criticized the company’s refusal to allow third-party apps access to the iPhone’s NFC technology without going through Apple Pay.
“With these restrictions,” CADE stated, “Apple makes it harder for new players to enter the market, preserves its dominant position artificially, and limits choices available to developers and users.” The authority has called for a financial penalty yet to be disclosed and proposed remedies that could force Apple to open its NFC hardware and payment systems to other providers.
The case has now moved to CADE’s internal tribunal for a final decision. Counselor Victor Fernandes, who previously reviewed Apple’s appeal against preliminary sanctions, will oversee the matter. The tribunal can either dismiss the case or confirm the violations and apply penalties under Law No. 12,529/2011.
Apple Says
Apple denies it holds a dominant position in Brazil and points to Android’s majority market share in the country. The company also claims that its NFC and Secure Element platform is available to third parties under specific terms. Still, CADE maintains that the system’s design discourages competition and reinforces Apple’s control.
In a statement shared with Tecnoblog, Apple defended its App Store model and warned that CADE’s proposed remedies could compromise user experience and privacy:
“For more than 16 years, the App Store has provided our users in Brazil with a safe and trusted marketplace to discover new apps and has helped Brazilian developers build successful businesses. We are concerned that CADE’s proposed measures would harm the experience our users love and trust, while also introducing new risks to their privacy and security. We will continue to engage with CADE to defend the rights of users and developers on our platform.”
CADE’s case aligns with similar regulatory pressure Apple faces globally. The European Union has already mandated changes to Apple’s payment systems under the Digital Markets Act, pushing the company to loosen its grip on NFC access and third-party payments.