Apple Expands iOS with Third-Party App Stores and Payment Systems in Brazil

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In a significant move, Brazil has compelled Apple to open iOS to third-party app stores and allow non-Apple payment processing for developers, following similar actions in the EU and Japan. Developers in Brazil can distribute apps through alternative app stores and process payments for apps, games, and in-app purchases outside of Apple’s proprietary payment system.

Despite these changes, Apple has cautioned that such shifts may "open new avenues for malware, fraud, scams, and privacy and security risks." All alternative app stores must be authorized by Apple and will be required to meet ongoing conditions to benefit both developers and users. Moreover, Apple will perform a baseline review known as Notarization on all apps, regardless of their source. This process emphasizes basic functionality and aims to protect users from significant threats.

Apple opens up iOS to third party app stores in Brazil

Notarization involves a blend of automated checks and human reviews, though it is not as comprehensive as the App Review process for apps available on the App Store.

Developers can utilize third-party payment systems not only for apps offered through alternative stores but also for those listed on the App Store. However, these alternative payment methods will always be shown alongside Apple In-App Purchase options.

Despite these developments, Apple continues to collect substantial fees, charging a 15% commission on transactions for apps and services linked through associated websites, with a reduced rate of 10% for select developers. These rates align with those applied to most developers using Apple’s payment services in the App Store, whereas a minority will face a 21% charge. In-app purchases processed through Apple incur an additional 5% fee.

Furthermore, the "Core Technology Commission" mandates a 5% payment to Apple from developers, even for apps sold outside the App Store using alternative marketplaces. Apple asserts that this fee compensates for the tools, technologies, and services that facilitate developers in creating and sharing their apps with iOS users.

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