Apple Faces Investigation Into MercadoLibre Complaint Over App Store Monopoly in Brazil

Apple has been accused by MercadoLibre of imposing a series of restrictions on the distribution of digital goods and in-app purchases.

By Reuters | Updated: 19 January 2023 16:56 IST

Apple Faces Investigation Into MercadoLibre Complaint Over App Store Monopoly in Brazil

Photo Credit: Reuters

Apple's policies have been challenged in many countries over the past years

Highlights

MercadoLibre filed an anti-competitiion complaint in December
MercadoLibre filed its complaint in Brazil and also Mexico
The decision to open the investigation was taken last week

Brazil's antitrust watchdog CADE has begun investigating a complaint by e-commerce retailer MercadoLibre Inc against Apple Inc for alleged abuse of a monopoly in the distribution of apps for its devices, the regulator said on Wednesday.

The decision to open the investigation into alleged anti-competitive practices by Apple was taken last week based on the complaint filed in December by MercadoLibre, CADE said in a statement.

"Similar investigations are being conducted by antitrust authorities in other jurisdictions," the watchdog said.

Apple Could Roll Out iOS 16.3 Update Next Week: All Details

MercadoLibre argued that Apple had imposed a series of restrictions on the distribution of digital goods and in-app purchases.

The South American company criticized the California tech giant for requiring developers who offer digital goods or services within apps to use Apple's own payment system and stopping them from redirecting buyers to their websites.

MercadoLibre filed its complaint in Brazil and also Mexico.

Apple Said to Be Working on an iPad-Like Smart Display, New TV Box

Apple did not immediately respond to a request for comment.

Apple's policies have been challenged in nearly every corner of the world over the past few years.

In a U.S. court trial over similar allegations, a judge found that Apple had not violated antitrust law in part because its rules led to security benefits for users that outweighed any harm to appmakers. But the ruling is being appealed and a global resolution on the issue appears distant.

CADE said antitrust cases against Apple are underway around the world, including in the European Union, Britain, South Korea, Japan, India and Indonesia.

Nasdaq-listed MercadoLibre is one of Latin America's largest companies, with a market capitalization of $53.82 billion (roughly Rs. 437900 crore), according to Refinitiv data.

Is 2023 the year when you should finally buy a foldable phone? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.