CADE publishes technical report on digital ecosystems

The Administrative Council for Economic Defense (CADE) published the technical report of the public hearing “Competition in Digital Ecosystems for Mobile Devices (iOS and Android)”, held on 19 February 2025. The document is divided into four sections, with a structured summary of the main topics and arguments discussed during the hearing, based on the oral and written statements submitted by the participants.

The first section addresses regulatory and institutional arrangements in digital markets, gathering divergent opinions on the sufficiency of ex-post enforcement to deal with digital ecosystems, as well as on the possible need for ex-ante asymmetric instruments aimed at platforms acting as gatekeepers. In addition, the discussions also explore ways of coordinating competition and regulatory instruments, in addition to potential impacts of these approaches on legal certainty, innovation, and economic efficiency.

Another section approaches the structure and competitive dynamics of the Android and iOS ecosystems, comparing business models, levels of openness, vertical integration, as well as relationships between users, developers, and manufacturers. The opinions differ regarding the level of rivalry between the systems, emphasizing that, although there is competition for users and developers, the presence of switching costs, single-homing and multihoming patterns, may lead to potential limitations on competitive discipline, especially at the level of app stores.

The document also systematises the alleged unilateral conduct in mobile ecosystems, as reported in the participants' statements. Among the recurring topics are the agreements for pre-installation and definition of default apps, anti-steering rules, mandatory use of native payment gateway, commissioning policies, access to technical features, and restrictions on alternative distribution channels. The contributions assess the possible effects of these practices on prices, quality, innovation, contestability, and rivals' access to relevant inputs.

Furthermore, the report includes an international perspective, with references to regulatory cases and initiatives in jurisdictions such as the European Union, the United States, the United Kingdom, Germany, Japan, the Netherlands, and Australia. These examples illustrate different combinations of competition enforcement and sectoral regulation, discussing, in a non-uniform manner, how certain solutions could be applied in the Brazilian context. The technical report is descriptive and systematic, seeking to provide transparency and qualified input to the debate on competition in digital ecosystems for mobile devices in Brazil.