After an agreement with CADE, the Brazilian competition authority, Apple announced a major restructuring of iOS Brazil. This update will allow developers to distribute applications through other applications and to process payments outside the in-house purchase system for apple applications.
For the first time, the Brazilian developers will no longer be fully subject to the distribution and digital purchase of App Store. Thus, at first glance, this seems to be a major victory for the developers, but after a close look, the latest initiative of apples has changed the way in which they maintain control rather than abandon control.
Apples still have multiple layers of control. Third-party application stores need to be approved, while applications distributed outside App Store still need to pass the notary of apples, an authorization process for the application market. Apple stated that those rules were necessary to protect users from malicious software, fraud, fraud and harmful content.
The new commercial provisions for apples include 21 per cent of the App Store commission, 15 per cent of the services purchased through web links and 5 per cent of the core technology for distribution outside App Store. This means that even if developers no longer use Apple Store, they may still have to pay apples in some way.
Epic reacted quickly to Apple ‘ s policies in Brazil, criticizing Apple for using strategies previously seen in other regulated markets: ostensibly complying with rules while keeping most of its business models unchanged. According to Epic, these costs and restrictions reduce the economic attractiveness of alternative application distribution, thereby undermining the potential competition of new application shops and payment systems.
Epic highlighted the application of 21 per cent to third parties for apples, 15 per cent commission for the purchase of web pages and the requirement for developers to report transactions outside the Apple Platform. Epic considered that these measures created additional obstacles to the development of the App Store.
Similar concerns have emerged in the EU, South Korea, Australia, Japan and the United States, and regulators continue to question whether apples allow for real competition or whether rules are adjusted only without reducing their overall control.
Brazil’s joining this group reflects the increasing challenge that Governments face to the traditional “gatekeeper” role of the main digital platforms, especially at a time when mobile ecosystems become increasingly important for software distribution, digital commerce and games.
Apples are now open, but only half. At the technical level, apples allow for competition, yet high costs still ensure that they hold the ecosystem. It was a matter of concern whether Brazil would promote further change, particularly with regard to Epic’s plan to launch the Epic game store on iPhone in the coming months.
