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Apple said on Thursday it will allow developers in Brazil to distribute iOS apps through alternative marketplaces and process payments outside its system, following an agreement with the country’s antitrust watchdog CADE. Apple agreed to make the changes to its services in December when it settled a dispute that had been opened in 2022. For apps distributed via the App Store in Brazil, developers will be able to offer alternative payment methods within their apps and direct users to external websites to complete transactions, the company said.

Apple Opens iPhone to Alternative App Stores

“These updates create new options for developers to distribute apps on alternative app marketplaces and to process app payments for digital goods and services outside of Apple in-app purchases,” Apple said. The company said it will introduce protections including app notarization, authorisation requirements for marketplaces, and safeguards for younger users against inappropriate content

Apple warned that alternative app marketplaces and payment systems could increase risks such as malware, fraud, scams and privacy threats. Developers can begin using the new features on Thursday as part of iOS 26.5.

What was the dispute?

At the heart of the fight was a simple question: Was Apple using its grip on the iPhone to shut out competitors in Brazil?

Brazil’s antitrust agency, CADE, stepped in after developers complained. They said Apple forced them to only use the official App Store for iOS apps and made everyone go through Apple’s own payment system. On top of that, developers said they weren’t even allowed to tell users about cheaper ways to pay outside the App Store.

This all kicked off in 2022, thanks to Mercado Libre, a huge e-commerce player in Latin America. They argued Apple’s rules made it way harder for everyone else to compete and pushed costs up for developers and customers alike. Regulators in Brazil looked into it, saw real competition concerns, and launched a sweeping investigation that dragged on for several years.

Now, after all the back and forth, Apple finally agreed to some big changes. In Brazil, users will get to pick from alternative app stores on their iPhones. Developers can use their own payment systems if they want, and apps can finally send people outside the App Store to make purchases. All this is supposed to make things fairer for developers and give folks more options. That’s the end of a three-year showdown. Brazil now joins the list of places forcing Apple to open up. Apple says it’ll follow the new rules, though they still warn that letting outsiders in might put users’ privacy and security at risk.

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