Starting today, app developers in Brazil can distribute their applications through alternative app marketplaces on iOS, marking a significant shift in Apple's App Store policies in the country. The changes, which also include new payment processing options and a revamped commission structure, take effect for users running iOS 26.5 or later.

The announcement comes after Apple reached a settlement late last year with Brazil's competition regulator, CADE, resolving a dispute that originated in 2022 when Latin American e-commerce giant MercadoLibre filed a complaint over Apple's App Store rules. The agreement required Apple to open iOS to alternative app marketplaces in Brazil and allow developers to offer payment systems outside the company's In-App Purchase (IAP) system.

Under the new framework, developers can build and distribute alternative app marketplaces using Apple's MarketplaceKit framework. Apps distributed through these marketplaces remain subject to Apple's baseline Notarization review, which combines automated checks and human review to identify malware and verify that apps function as advertised. Apple emphasizes that this process is distinct from its regular app review, which is more thorough, leaving additional scrutiny to each alternative marketplace.

Alternative App Marketplaces Now Live

Developers can now choose to distribute their apps through the App Store, one or more alternative marketplaces, or both. However, users cannot sideload apps directly from the web; any app distributed outside the App Store must come from an approved alternative marketplace. Applications distributed through these alternative outlets must still carry age ratings, as stipulated in Apple's agreement with CADE. This means parental controls such as Screen Time, download approval, and content restrictions based on age ratings remain enforceable even outside the App Store.

Apple notes that these protections, especially for children, go beyond what is required under the European Union's Digital Markets Act (DMA). For instance, apps in the Kids category on the App Store will not include links to external websites for transactions, aiming to reduce the risk of fraud or scams targeting younger users. Users under 18 must pass a parental gate before making purchases through alternative payment processing, and apps from the App Store cannot link to external websites for transactions for those users. Apple is also developing a new API that will allow developers using alternative payments to enable parents to monitor and approve purchases made outside Apple's IAP.

New Payment Options

With the updated rules, developers now have three ways to handle in-app purchases within apps distributed via the App Store:

• In-app via Apple's IAP: Continue using Apple's in-app purchase system.
• In-app via third-party provider: Integrate a third-party payment provider directly into the app.
• Off-app: Direct users to an external payment provider on the web.

Developers who choose to integrate a third-party payment provider directly into their apps must still offer Apple's IAP system as an option. For those directing users to an external website, Apple notes that apps in the Kids category are prohibited from including such external purchase links. The company acknowledges that while these measures do not completely eliminate the risk of scams, they help mitigate risks for younger users and provide stronger protections than the DMA requirements.

Apple also warns that transactions processed outside its payment system will not benefit from features such as refunds, subscription management, purchase restoration, purchase history, or Apple's customer support and security protections. This is a key point for developers to consider when choosing a payment route.

Revised Commission Structure

The new commission framework in Brazil is tiered based on how apps are distributed and how payments are processed. The structure closely mirrors the one Apple introduced in Japan last December. Here is a breakdown:

• Apps distributed via the App Store using Apple's IAP: Developers pay a 5% payment processing fee plus a 21% App Store commission. The commission drops to 10% for developers enrolled in the App Store Small Business Program, Video Partner Program, Mini Apps Partner Program, and for subscriptions after the first year.
• Apps distributed via the App Store using a third-party in-app payment provider: The 5% processing fee is waived, but the 21% App Store commission remains, with the same reduced rates for qualifying developers and subscriptions.
• Apps distributed via the App Store directing users to an external payment provider: A 15% Store Services Commission applies. The reduced 10% rate applies to qualifying developers and subscriptions. This commission covers purchases completed within seven days of a user tapping an external purchase link in the app.
• Apps distributed through alternative marketplaces: A 5% Core Technology Commission is charged on sales of digital goods and services, including paid-app purchases.

This structure encourages developers to use Apple's own payment system by offering a slightly lower overall fee when combined with the App Store commission, though the differences are nuanced. For large developers, the total commission can still reach 26% (21% + 5%) or 21% if using a third-party provider, versus 15% for external link purchases or 5% for alternative marketplace distribution. Smaller developers enrolled in the Small Business Program can see effective rates as low as 15% (10% + 5%) on Apple IAP, or 10% for external link purchases, making alternative marketplaces relatively more attractive for lower-revenue apps.

Apple's introduction of a Core Technology Commission in Brazil parallels similar fees in the EU and Japan, drawing criticism from some developers who argue it still locks them into Apple's ecosystem. However, Apple defends the fee as necessary to cover the costs of maintaining the platform's security and privacy infrastructure.

Setting a Default App Marketplace

Users running iOS 26.5 or later can now set an alternative app marketplace as their default installation platform. To do so, they navigate to Settings > Apps > Default Apps > App Installation, and if they have an alternative marketplace installed, select it instead of the App Store. This follows a similar approach to how users can set default browsers or email clients, shifting power to consumers to choose their primary app source.

The changes are effective immediately for Brazilian users, and developers can start submitting alternative marketplaces and apps for review. The Brazilian market is the latest to benefit from Apple's compliance with regulatory pressures, following similar moves in the EU and Japan. Unlike the EU's DMA, which mandated a broad set of interoperability and choice requirements, Apple's settlement in Brazil was negotiated directly with CADE, resulting in a tailored framework that includes the age-rating and parental control provisions highlighted by Apple.

For developers, the opportunity to bypass Apple's payment system and distribute through alternative stores could reduce costs and increase flexibility. However, the requirement to undergo notarization and the 5% Core Technology Commission may temper enthusiasm. The ability to offer external payment links also introduces new user experience considerations, as apps must present clear options between Apple's system and third-party providers.

Broader Context and Implications

The Brazil changes come amid a global antitrust crackdown on Apple's App Store practices. The U.S. Justice Department recently filed a lawsuit alleging monopolistic behavior, while South Korea and India have pushed for similar reforms. Apple's phased approach—first in the EU under the DMA, then Japan, now Brazil—shows a pattern of reluctant concession, often with a complex fee structure that critics say maintains Apple's control while appearing to comply with regulators.

In Brazil, the agreement with CADE was notably influenced by MercadoLibre's complaint, which argued that Apple's 30% commission and mandatory IAP stifled competition, particularly in the digital goods and services market. MercadoLibre operates its own payment system and app marketplace, and the changes are expected to benefit not just large platforms but also smaller Brazilian developers who previously had no alternative to the App Store.

Apple continues to emphasize the safety and privacy advantages of its integrated approach. In a statement accompanying the announcement, the company highlighted that its new rules offer stronger protections for children than the EU's DMA, pointing to the prohibition of external purchase links in Kids category apps and the parental gate for users under 18. These protections are not mandatory under the DMA, which instead focuses more on interoperability and choice.

Despite these safeguards, some consumer advocates worry that opening the platform to alternative marketplaces could increase the risk of malicious apps slipping through, especially if marketplaces have lax review standards. Apple counters that the baseline Notarization process catches known malware and fraudulent apps, and that age ratings and parental controls add an extra layer of protection.

Developers now have time to evaluate the new options and decide which distribution and payment methods best suit their apps. The commission structure, while complex, offers clear tradeoffs between cost, user trust, and ease of integration. For users, the ability to choose a default app marketplace could lead to a more diverse ecosystem, though most are likely to stick with the familiar App Store unless alternatives offer compelling benefits like lower prices or exclusive content.

Apple has signaled that it will monitor the implementation in Brazil closely and may adjust terms if necessary. The company also plans to expand similar frameworks to other regions where regulatory pressures mount, though it has not announced a timeline for additional markets. As the global landscape for app distribution shifts, Apple's gradual opening—while maintaining strict control through fees and review processes—appears to be its strategy for balancing regulatory demands with its commercial interests.

Source: 9to5Mac News