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INSTITUTIONAL
CADE upholds interim measure against Apple
On 14 May, the Administrative Council for Economic Defense (CADE) dismissed Apple’s appeal against the interim measure imposed by the Office of the Superintendent General at CADE (SG). The interim measure orders the cessation of anticompetitive practices under pain of a daily fine of BRL 250 thousand.
Apple questioned order that was part of an investigation on alleged abuse of dominant position in the distribution market of apps on iOS devices. According to the representatives, Mercado Livre and Mercado Pago, Apple imposes a series of restrictions to developers for the purchase of digital goods and services, to prevent or limit new entries into these markets.
The SG decided to launch an investigation to analyse evidence of antitrust violations, based on information gathered during the preliminary enquiry. Complaints similar to these led to investigations in other countries, with ongoing or concluded cases in the European Union, the United Kingdom, the Netherlands, Germany, Australia, South Korea, Japan, India, and Indonesia.
Commissioner Victor Fernandes, rapporteur of the case, stated the alleged illegality of the tie-in sale practiced by Apple, since it imposed a 30% fee for payments made in apps. According to the commissioner, this practice not only harms developers by imposing excessive costs, but also hinders innovation and the variety of apps available for consumers.
The Tribunal of CADE unanimously decided to follow the vote of the rapporteur and uphold the interim measure imposed by the SG, within 90 days from the decision.