Apple opens up App Store to new competition in Brazil

As of June 18, 2025, Apple has granted developers in Brazil the right to distribute iOS apps through alternative app stores and handle digital transactions outside the App Store, marking a significant shift in the company’s long-standing control over its platform. This change stems from a regulatory agreement with Brazil’s Conselho Administrativo de Defesa Econômica (CADE), which has increasingly pressured tech giants to loosen their grip on app distribution and payment systems. The move aligns Brazil with a growing list of markets—including the European Union and Japan—where Apple has been compelled to adapt its policies to meet local regulatory expectations.

A Regulatory Push Against Walled Gardens

The App Store’s walled garden model has long been a source of contention, with critics arguing that it stifles competition and limits consumer choice. In Brazil, this model faced mounting scrutiny from regulators who viewed Apple’s 30% commission on in-app purchases as anti-competitive. The new agreement allows developers to offer apps and in-app purchases through third-party stores, provided they comply with a new set of security and content guidelines. These include notarization processes for apps distributed outside the App Store and authorization requirements for alternative marketplaces, aiming to balance openness with user protection.

New Rules for a More Open Ecosystem

Apple’s updated Apple Developer Program License Agreement outlines specific terms for apps distributed in Brazil, incorporating the Core Technology Commission (CTC) fee structure. This replaces the previous Core Technology Fee (CTF) and applies to apps distributed through the App Store, the web, and any authorized alternative marketplace. Developers will have until July 6, 2026, to accept the updated terms, giving them time to adjust their business models accordingly.

  • Alternative app stores will now be legally permitted in Brazil.
  • In-app payments can be processed outside the App Store.
  • Notarization ensures app security and compliance with local standards.
  • Authorization protocols will govern third-party marketplaces.
  • CTC fees will apply to all app distribution channels.

The changes do not eliminate Apple’s influence but instead redefine it. The company retains control over app approval and user security, while allowing developers greater freedom in distribution and monetization. This represents a delicate balancing act between regulatory pressure and the preservation of Apple’s brand and platform integrity.

A Global Trend with Local Implications

Brazil’s decision to push Apple toward openness is part of a broader global trend. Similar regulatory actions have been taken in the EU, where the Digital Markets Act (DMA) requires large platforms to allow third-party app stores and payment systems. In Japan, Apple also adjusted its policies following legal challenges. These developments suggest that the App Store’s monopoly may no longer be as unshakable as once believed.

For Brazilian developers, the new rules offer a welcome expansion of opportunity. They can now explore alternative distribution channels, potentially reducing dependency on Apple’s 30% commission and opening the door to more flexible monetization strategies. However, the added regulatory compliance and security measures may introduce new complexities, particularly for smaller developers who must navigate additional bureaucratic and technical hurdles.

Looking Ahead: A New Era for App Distribution

This shift in Brazil may serve as a blueprint for other markets seeking to regulate the dominance of platform gatekeepers. As competition intensifies and regulatory frameworks evolve, Apple’s ability to maintain its current dominance over the iOS ecosystem may be tested in more regions. For now, the company has adapted by introducing new protections and fee structures that ensure compliance without fully relinquishing control.

The broader industry will be watching closely to see how this new model plays out. If successful, it could signal a long-term transformation in how apps are distributed and monetized, moving away from the walled garden model that has defined the App Store for over a decade. For users, the result may be more choice, better pricing, and a more competitive app ecosystem—though the full impact will depend on how developers and regulators continue to shape the landscape.