The Federal Regional Court of the 1st Region (TRF-1) has delivered a significant blow to Apple, reinstating an injunction that compels the tech giant to modify its app store policies in Brazil. This decision stems from an ongoing investigation by the Administrative Council for Economic Defense (Cade) into allegations of Apple abusing its dominant position in the iOS app distribution market. The court's ruling mandates that Apple allow apps to inform users about alternative purchasing methods, effectively challenging the company's control over in-app transactions.The legal battle began when Cade's General Superintendence initiated an administrative proceeding against Apple, citing concerns over restrictive practices that hinder competition. Apple initially secured a favorable ruling from the Federal Court of the Federal District, overturning the injunction. However, Judge Pablo Zuniga of TRF-1 reversed this decision, emphasizing the urgency of addressing potential anticompetitive practices within the rapidly evolving technology market.Judge Zuniga granted Apple 90 days to implement the required changes, extending the initial 20-day deadline to allow for the technical complexities involved in modifying the iOS operating system. The judge stated that the injunction "does not hinder Apple's business model but only imposes adjustments that can be reversed if the final decision in the administrative process is favorable to the aggrieved party.”The case originated from a 2022 complaint by Mercado Livre, which alleged that Apple's restrictions on in-app purchases constituted an abuse of its dominant position. Cade's investigation focuses on the broader issue of big tech companies imposing limitations on app developers, particularly concerning digital goods and services.Apple has responded to the court's decision, expressing concerns that the mandated changes could "compromise the privacy and security of our users." The company has also stated its intention to appeal the ruling, maintaining its belief in "vibrant and competitive markets."
