Apple will allow third-party app stores and payment processing in Brazil

Brazilian regulators have with Apple after a yearslong investigation into the company’s App Store fee practices as well as its policies against third-party app stores. As first reported by Brazilian tech site , the nation’s Administrative Council of Economic Defense (CADE) said it has accepted Apple’s proposed agreement that will address claims of anticompetitive practices.

The agreement will allow for third-party payment processing methods for in-app purchases and reins in Apple’s anti-steering efforts by allowing links to external websites for transactions. The settlement requires that these payment options be shown next to Apple’s own. Apple must also allow third-party app stores to be installed on its devices, though the company is allowed to display warnings to users if they are written in a neutral and objective way.

A new fee structure has also been agreed to, with Apple applying no fee if users are directed to outside payment methods in a text-only way. The use of a clickable link or button for an external payment option will incur a 15 percent fee. Purchases made within Apple’s App Store will still be subject to a 10 percent or 20 percent commission. Developers using Apple’s payment system would also be subject to a 5 percent transaction fee.

Additionally a 5 percent “Core Technology Fee” would be levied against all app downloads from third-party app stores. This new structure bears similarities to policy and fee after the EU passed its Digital Markets Act, with Apple allowing third-party app stores and external purchases subject to varying fees.

Apple will have 105 days to comply under the new agreement and could face fines of up to $27 million for failure to implement the changes. The iPhone maker has been facing mounting pressure from regulators worldwide over its anti-steering practices and was recently handed a $587 million fine by the EU for violating its Digital Markets Act. Apple is the fine. In the US, Apple has been embroiled in a court battle with Fortnite maker over commissions on purchases that take place on third-party payment platforms.