Epic Games is pressing Brazilian antitrust regulators to scrutinize Apple’s implementation of a recent App Store settlement, arguing that the iPhone maker has erected technical and procedural hurdles that weaken newly permitted competition in app distribution.
The dispute centers on changes Apple introduced in Brazil following the resolution of a years-long competition investigation into its App Store practices. Epic has filed a petition with Brazil’s Administrative Council for Economic Defense, known as CADE, challenging how Apple is carrying out those commitments, according to 9to5Mac.
CADE gave Apple until Monday to respond to the complaint, according to the Aug. 21 report. Apple had not publicly commented on Epic’s latest allegations at the time of publication.
The confrontation highlights the difficulty regulators face in translating antitrust settlements into practical changes in digital markets. Apple has faced pressure in several jurisdictions to loosen restrictions governing how software reaches users and how developers collect payments, while the company has sought to retain fees and safeguards around transactions taking place on its devices.
In Brazil, Apple began allowing developers to distribute iOS software through marketplaces other than its App Store roughly two months ago, according to 9to5Mac. The changes resulted from a settlement of an antitrust investigation that originated with a complaint by Latin American e-commerce company MercadoLibre over Apple’s App Store policies.
Under the settlement, developers can use alternative marketplaces and provide payment options outside Apple’s in-app purchasing system. Apple also established a revised fee structure that includes a 5% Core Technology Commission on digital goods and services sold through applications distributed outside its App Store, according to 9to5Mac.
Related: Apple Loses Supreme Court Bid to Pause Epic App Store Proceedings
Epic, the maker of Fortnite and a longtime critic of Apple’s control over software distribution, argues that the formal concessions don’t go far enough in practice. Its filing alleges that Apple has imposed what Epic characterized as structural, technical and access-related obstacles that make alternative distribution less viable, according to the 9to5Mac account of the Brazilian reporting.
One point of contention is the scope of the settlement. Apple’s new Brazilian terms apply to iOS applications, while Epic argues that the agreement with CADE also encompasses iPadOS, according to 9to5Mac.
Epic is also challenging warnings presented to consumers who install software from outside Apple’s official store and the number of steps required to complete such installations. The company says Apple’s Brazilian process takes nine steps, compared with six under the company’s current European implementation, 9to5Mac reported.
Epic cited Apple’s experience in Europe as evidence that additional friction can materially affect whether consumers complete installations. According to O Globo, as relayed by 9to5Mac, Epic told Brazilian regulators that Apple’s European installation procedure once involved 15 steps. After that process was reduced to six, Epic said abandonment of downloads dropped to 25% from 65%.
The complaint also takes aim at information Apple requires developers to provide. Epic contends that those reporting obligations exceed what Apple needs to determine applicable fees and could give the company visibility into competitors’ business models, according to the 9to5Mac report.
The Brazilian dispute adds another front to a broader regulatory debate over whether allowing alternative app stores and payment systems is sufficient to create meaningful competition if platform owners can still influence the cost and complexity of using them.
For CADE, the immediate question is whether Apple’s implementation complies with the substance as well as the formal terms of its settlement. Apple’s response could determine whether Brazil’s recent App Store reforms settle the competition fight — or open a new phase of regulatory scrutiny.
Source: 9to5Mac