SG recommends Apple’s conviction for anticompetitive conduct

On 30 June, the Office of the Superintendent General at CADE (SG) recommended Apple’s conviction for anticompetitive conduct in the digital ecosystem of the iOS operating system. The decision results from an investigation that examined abusive practices adopted by the company.

The case started in 2022 after a complaint from Ebazar.com.br Ltda. and Mercado Livre, showing there was abuse of dominant position in the market of distribution of applications for iOS devices.

The investigation revealed a set of restrictive conducts related to selling digital content inside Apple’s ecosystem. Among them, prohibiting the sales of digital services from third parties and requiring developers to use exclusively the iOS payment system for transactions of digital goods and services.

During the investigation, the SG concluded that the practices create artificial entry barriers for competitors from markets related to the iOS system, fully controlled by Apple. Thus, the company hampers new agents’ performance, maintains an artificial dominant position, and reduces the options available for the platform’s developers and users.

CADE concluded that there was antitrust violation and recommended imposing a fine, in addition to behavioural remedies, to solve the competition problems identified. The recommendation also includes ceasing the investigated practices and adopting measures to mitigate its anticompetitive effects, removing the artificial entry barriers.

The case was submitted to the Tribunal of CADE and assigned to Commissioner Victor Fernandes, since he had already analysed Apple’s appeal against a preventive measure imposed by the SG in May. 

The proceeding will receive a final decision, either to dismiss or convict the defendants for antitrust violation and impose sanctions according to Law 12529/2011.