Apple Announces Major App Store Changes on iOS in Brazil

Utsanjan Maity
June 20, 2026

Apple Opens Up iOS in Brazil: A New Era for App Developers and Users

In a significant announcement, Apple has confirmed that developers in Brazil will now have the unprecedented ability to distribute iPhone apps through alternative app marketplaces on iOS. Furthermore, they will be permitted to accept payments for digital goods and services using third-party platforms, bypassing Apple's traditional in-app purchase system. This move marks a pivotal moment for the iOS ecosystem in Brazil, introducing new avenues for developers and potentially greater choice for users. While these changes open up the platform, it's important to note that a fee structure will still apply, albeit with different terms.

This decision comes as a direct response to growing regulatory pressure worldwide, with Brazil's competition regulator playing a key role in advocating for a more open digital marketplace. The changes reflect a broader global trend where governments and regulatory bodies are scrutinizing the market power of large technology companies, aiming to foster greater competition and innovation. For years, Apple has maintained a tightly controlled ecosystem, arguing that its singular App Store and integrated payment system were crucial for user privacy, security, and a consistent, high-quality experience. However, regulators argue that this control stifles competition and innovation, leading to changes like those now being implemented in Brazil.

What's Changing: Alternative Marketplaces and Payment Options

The core of Apple's announcement revolves around two major shifts: the introduction of alternative app marketplaces and new flexibility in payment processing.

Alternative App Marketplaces

Going forward, developers in Brazil will no longer be exclusively bound to the official App Store for distributing their iPhone applications. Instead, they can opt to list their apps on alternative app marketplaces. These marketplaces are essentially third-party app stores that can operate on iOS alongside Apple's own App Store. This opens up a world of possibilities for developers, allowing them to potentially reach new audiences, experiment with different business models, and reduce their reliance on a single distribution channel. For users, this could mean access to a wider variety of apps, potentially with different pricing structures or unique features not available elsewhere.

However, it's crucial to understand that these alternative marketplaces won't operate without any oversight. Apple has stipulated that these marketplaces must be "authorized" by the company and will need to meet "ongoing requirements." This suggests that Apple will retain a degree of control, likely implementing a vetting process to ensure certain standards of security, performance, and potentially content guidelines are met. The exact nature of these requirements will be detailed further by Apple, but they are designed, according to Apple, to mitigate potential risks associated with opening up the ecosystem, such as malware or privacy vulnerabilities. Developers considering these alternative channels will need to carefully review Apple's authorization process and ensure their chosen marketplace adheres to all necessary compliance standards.

Flexible Payment Processing

Beyond app distribution, the changes also significantly impact how developers can handle payments for digital goods and services within their apps. Historically, Apple's in-app purchase (IAP) system was the only approved method for such transactions, with Apple taking a commission on every sale. Now, developers have more options:

  • Alternative Payment Processing within App Store Apps: For apps that continue to be distributed through the official App Store, developers will now have the option to include an alternative payment processing method directly within their application. This means users could, for example, choose to pay with a different payment service provider than Apple Pay or Apple's IAP system, giving them more flexibility.
  • Linking to External Websites for Transactions: Developers can also choose to direct users to an external website to complete a transaction. This allows developers to fully control the payment process outside of the app environment, potentially using their preferred payment gateways and avoiding Apple's in-app purchase system altogether. This method is particularly appealing for developers who wish to integrate with existing e-commerce solutions or offer a broader range of payment options to their customers.

These new payment options are a direct challenge to Apple's long-standing policy that required developers to use Apple's IAP system for digital goods and services. They provide developers with more autonomy over their revenue streams and could potentially lead to cost savings, depending on the fee structures of the alternative payment processors they choose. It also means users will encounter different payment interfaces and options when making purchases within apps.

The Regulatory Push: Why Brazil is Following Global Trends

These significant changes, available on iOS 26.5 and later, are not an arbitrary decision by Apple but rather a direct consequence of regulatory action from Brazil's competition regulator. This move places Brazil alongside a growing list of regions—including the European Union, Japan, and South Korea—where Apple has been compelled to modify its long-standing App Store policies due to governmental intervention aimed at promoting fair competition and consumer choice.

The Global Landscape of App Store Regulation

The pressure on Apple to open its ecosystem is not isolated to Brazil. In the European Union, the landmark Digital Markets Act (DMA) has been a pivotal force, mandating that "gatekeepers" like Apple allow alternative app stores and third-party payment systems. The DMA, which became fully applicable in March 2024, aims to ensure fair and contestable digital markets, preventing dominant platforms from self-preferencing or imposing unfair conditions on businesses that rely on their services. Apple's compliance with the DMA involved a comprehensive overhaul of its iOS ecosystem in the EU, introducing new APIs, developer tools, and fee structures to accommodate these changes. The EU's robust stance has set a precedent, influencing regulators worldwide.

Similarly, Japan and South Korea have enacted specific legislation to address app store dominance. South Korea passed a law in 2021 that explicitly prohibits app store operators from forcing developers to use their proprietary billing systems, becoming one of the first major economies to do so. Japan has also been actively investigating app store practices, pushing for more openness and choice. These actions underscore a global consensus among regulators that the control exercised by platform owners over app distribution and payments can stifle innovation and create anti-competitive barriers.

Anticipating Future Changes

Given this global regulatory environment, Apple explicitly acknowledged that it will "likely be forced to do so in the UK and Australia too, due to similar regulations in those countries." Both the United Kingdom and Australia have active competition watchdogs that have been scrutinizing digital markets. The UK's Competition and Markets Authority (CMA) has, for example, published reports expressing concerns about the dominance of Apple and Google in mobile ecosystems. As these countries develop and implement their own versions of digital market regulations, it's highly probable that Apple will face further mandates to open its iOS platform. This growing trend suggests that the changes seen in Brazil are not just a regional anomaly but part of a much larger, ongoing transformation of how digital platforms operate globally. Developers and users worldwide should pay close attention, as these shifts could eventually impact their local markets as well.

For developers in Brazil seeking more detailed information, Apple has created a dedicated resource page: developer.apple.com/support/app-distribution-in-brazil. This page will be essential for understanding the specific technical requirements, compliance guidelines, and implementation details necessary to leverage these new options.

Privacy and Security: Apple's Concerns and Safeguards

While these changes introduce new freedoms, Apple has expressed significant concerns regarding the potential impact on user privacy and security. The company has historically argued that its tightly controlled App Store environment, with rigorous app review processes and mandatory in-app purchases, serves as a vital safeguard against malware, scams, and privacy breaches. Opening up the platform, they contend, could expose users to new risks.

Identified Risks

Apple's primary concerns include:

  • Malware and Viruses: Apps from unauthorized sources might not undergo the same stringent security checks as those on the App Store, potentially increasing the risk of malicious software infecting devices.
  • Data Privacy: Third-party payment processors or alternative app marketplaces might have different privacy policies and data handling practices, which could expose user financial and personal information to greater risk.
  • Scams and Fraud: Without Apple's unified review process, it could become easier for fraudulent apps or payment schemes to proliferate.
  • Inconsistent Content Policies: Alternative marketplaces might have different content moderation standards, potentially allowing apps that Apple would typically reject due to offensive content, misinformation, or other violations.
  • Impact on Children: Children, being more vulnerable, could be particularly susceptible to misleading apps, inappropriate content, or unauthorized transactions if parental controls and safeguards are not universally applied.

Apple's Safeguards to Mitigate Risks

To address these concerns and maintain a baseline level of security and trust, Apple has introduced several safeguards:

  • Notarization Process for iOS Apps: Even if an app is distributed outside the App Store through an alternative marketplace, it will still be required to go through Apple's notarization process. Notarization is an automated system that scans apps for known malicious code, viruses, and other security threats. This process aims to provide a fundamental layer of security for all iOS apps, regardless of their distribution channel, giving users some assurance that the app isn't overtly harmful. It's a critical step in balancing openness with security.
  • Authorization Process for App Marketplaces: Before an entity can operate an alternative app marketplace on iOS in Brazil, it must undergo an authorization process by Apple. This involves a review to ensure the marketplace meets Apple's specific criteria for security, platform integrity, and perhaps even operational standards. This authorization helps Apple maintain a degree of oversight over the new distribution channels, ensuring that they themselves adhere to certain responsible practices and are not simply platforms for distributing unsafe applications.
  • Limitations on External Links and Alternative Payments for Users Under 18: Recognizing the particular vulnerability of minors, Apple has implemented specific restrictions. For users under the age of 18, there will be limitations on accessing external links for transactions and using alternative payment methods. This safeguard is designed to protect children from potentially harmful content, inappropriate purchases, or exposure to less secure payment systems, offering an additional layer of parental control and child safety within the evolving ecosystem.

These safeguards represent Apple's attempt to reconcile regulatory demands for openness with its steadfast commitment to user privacy and security. While developers gain more freedom, Apple is clearly aiming to prevent a complete free-for-all, seeking to maintain a level of quality control and protection for its users, especially the most vulnerable. It will be an ongoing challenge to balance these competing interests as the ecosystem evolves.

Fees: The New Financial Landscape

Despite the introduction of alternative distribution and payment options, developers in Brazil will still be subject to fees and commissions from Apple. The fee structure is complex, varying based on whether an app is distributed via the App Store or an alternative marketplace, and whether Apple's in-app purchase system is utilized. Understanding these new financial terms is crucial for developers to make informed business decisions.

Fees for Apps Distributed on the App Store (with New Payment Options)

For developers who choose to continue distributing their iOS apps through the official App Store in Brazil, and opt to use alternative payment methods or link to external websites for transactions, a revised commission structure applies:

  • Lower Commission on Digital Goods and Services: The standard commission rate for digital goods and services will be lowered to a maximum of 21%, down from the previous maximum of 30%. This represents a significant reduction for many developers, increasing their revenue per sale. This lower rate applies if a developer uses an alternative payment processor within the app or links out to a website for the transaction.
  • Existing Programs and Lower Rates: It's important to remember that many developers already qualify for even lower commission rates through existing Apple programs. For example, the Small Business Program allows developers earning less than $1 million USD in annual net sales to pay a 15% commission. Similarly, the Video Partner Program and Mini Apps Partner Program also offer reduced rates, sometimes as low as 10%. Developers should assess their eligibility for these programs, as they can lead to substantial savings.
  • Additional 5% Fee for Apple's In-App Purchase (IAP) System: If a developer chooses to offer an alternative payment method but still allows users the option to pay through Apple's traditional in-app purchase system, an additional 5% fee will be applied on top of the base commission. This means that if a developer's base commission is, for instance, 21%, and they use Apple's IAP, the total commission would be 26%. This 5% charge is intended to cover the value and services provided by Apple's IAP system, including secure payment processing, fraud prevention, and customer support. Developers will need to weigh the convenience and trust associated with Apple's IAP against this additional cost.
  • Commission on Website-Linked Transactions: For transactions involving digital goods and services that are completed on an external website linked to by the developer's App Store app, a commission of 15% will apply. In certain cases, this commission may be further lowered to 10%. This fee acknowledges that Apple's App Store still provides the crucial discovery, marketing, and distribution channel that leads users to the developer's app in the first place, even if the final transaction occurs off-platform. Developers must clearly understand when the 15% or 10% rate applies to accurately forecast their revenue from such transactions.

Fees for Apps Distributed Outside the App Store (Alternative Marketplaces)

For iOS apps distributed through alternative app marketplaces in Brazil, a different fee structure is introduced, centered around what Apple calls the "Core Technology Commission" (CTC):

  • 5% Core Technology Commission (CTC): Developers distributing their apps outside the App Store will be required to pay a 5% commission on the sale of digital goods and services. This includes paid apps themselves, as well as in-app purchases made for digital content. This fee is distinct from the App Store commission and is applied regardless of the payment processor used by the developer or the alternative marketplace.
  • Apple's Justification for the CTC: Apple states that this "Core Technology Commission" serves to compensate it for the fundamental value it provides to the iOS ecosystem. This includes the extensive suite of tools, technologies, and services that enable developers to create, test, and offer apps to iOS users. These foundational elements encompass the iOS operating system itself, the Xcode development environment, the Software Development Kits (SDKs) that provide access to iOS features, security infrastructure, App Store Connect services (even if used for notarization), and the continuous innovation and maintenance of the platform. Apple argues that developers benefit from this intellectual property and infrastructure regardless of their distribution channel, thus warranting a fee.
  • Implications for Developers: The CTC means that even when completely bypassing the App Store and Apple's payment system, developers will still incur a cost for operating within the iOS ecosystem. Developers will need to factor this 5% into their pricing and revenue models when choosing to distribute via alternative marketplaces. This fee structure mirrors similar approaches Apple has taken in other regions, like the EU, where regulatory mandates have forced the opening of the ecosystem. It highlights Apple's strategy to maintain a revenue stream from the iOS platform's core technology, even as its traditional commission models face challenges.

By July 6, 2026, all current members of the Apple Developer Program will be required to agree to an updated Apple Developer Program License Agreement. This updated agreement will incorporate the new terms and conditions that enable these distribution and payment options in Brazil, making it legally binding for developers to comply with the new framework. Developers should review these updated terms carefully to understand their obligations and the nuances of the new fee structures. The complexity of these new fees underscores the need for developers to meticulously plan their distribution and monetization strategies in Brazil.

Strategic Choices for Developers and User Experience

The changes in Brazil present a complex new landscape for iOS developers. They now face critical strategic decisions that could significantly impact their business models, reach, and operational overhead. Simultaneously, users will experience a different, potentially more varied, but also potentially more fragmented, app environment.

Developer Decisions and Considerations

Developers in Brazil will need to carefully weigh several factors when deciding how to navigate these new options:

  • Distribution Channel Strategy:
    • Stay on App Store (with new payment options): This offers the benefit of Apple's vast user base, established trust, and marketing power. Developers can now benefit from lower commissions on digital sales (up to 21% or 15%/10% for web-linked transactions), and potentially use their preferred payment processors. However, if they still offer Apple's IAP, there's an additional 5% fee.
    • Distribute via Alternative Marketplaces: This offers more autonomy, potentially different terms with marketplace operators, and access to specific user communities. The primary cost here is the 5% Core Technology Commission (CTC) to Apple, plus any fees charged by the alternative marketplace itself. Developers will need to manage multiple distribution channels and potentially adapt their apps for different marketplace requirements.
    • Hybrid Approach: Some developers might choose to be on both the App Store and alternative marketplaces, tailoring their strategy based on app type, target audience, or specific regional preferences. This adds complexity but could maximize reach.
  • Payment Processing Strategy:
    • Third-Party Payments: By using their own payment processors, developers can potentially reduce transaction fees (compared to Apple's historical 30% cut), gain more control over customer data, and integrate with their existing commerce systems. However, they will be responsible for security, fraud prevention, chargebacks, and customer support related to payments.
    • Apple's In-App Purchase: Despite the additional 5% fee (when also offering alternatives), Apple's IAP offers convenience, high user trust, seamless integration with Apple ID and Apple Pay, and Apple handling all payment-related issues. For some developers, especially those focused on simplicity and premium user experience, this might still be a preferred option.
  • Compliance and Technical Overhead: Navigating notarization for all apps, ensuring compatibility across different marketplaces, and managing various payment integrations will add to the development and operational workload. Developers will need to invest in legal and technical expertise to comply with Apple's new terms and other marketplace requirements.
  • Innovation and Business Models: The newfound flexibility could spark innovation in app features, pricing models, and how developers engage with their users, potentially leading to new types of apps or services that were previously hindered by strict App Store rules.

Impact on User Experience

For users in Brazil, these changes will bring both opportunities and potential challenges:

  • Increased Choice: Users might gain access to a wider variety of apps, including those that previously couldn't meet App Store guidelines or preferred alternative distribution. This could also lead to more competitive pricing as developers have more control over their costs.
  • Potential for Fragmentation: Users may need to manage multiple app stores, each with its own interface, update mechanism, and account login. This could make discovering and managing apps slightly more complex than the previous unified App Store experience.
  • Enhanced Security Awareness Needed: While Apple has introduced safeguards like notarization, users will still need to be more vigilant. They'll need to exercise caution when downloading apps from unfamiliar marketplaces and be aware of the security implications when using third-party payment processors. Understanding the source of an app and the security of a payment method will become more critical.
  • Varied Payment Options: While more choice is good, encountering different payment interfaces and terms across various apps might require a slight adjustment from users accustomed to the consistent Apple IAP experience.
  • Impact on Pricing: It remains to be seen whether reduced developer fees will translate into lower prices for apps and in-app purchases for consumers, or primarily result in higher profit margins for developers. A competitive market might push prices down, but developers also face new costs associated with managing multiple platforms.

The transition period will likely involve a learning curve for both developers and users. However, the overarching goal of these regulatory-driven changes is to foster a more open, competitive, and innovative mobile app ecosystem in Brazil, reflecting a global shift towards greater digital market fairness.

The Road Ahead: Future Implications and Predictions

The recent announcement regarding iOS in Brazil is far more than a regional adjustment; it's a clear indicator of a global shift in the regulatory landscape surrounding digital platforms. These changes set precedents and highlight the likely trajectory for Apple's iOS ecosystem in the years to come.

The Inevitable Global Spread

As Apple itself hinted, the changes enforced in Brazil are almost certainly a harbinger of things to come in other major markets. The regulatory momentum building in regions like the UK and Australia, with their own strong competition watchdogs and legislative efforts, suggests that Apple will face similar mandates to open its ecosystem there. Beyond these, other countries might draw inspiration from the EU's Digital Markets Act and Brazil's regulatory action, potentially prompting similar legislative efforts. This means that developers around the world, and certainly users, should anticipate that the options now available in Brazil could eventually become standard practice globally. The era of a single, unchallenged app store and payment system on iOS appears to be drawing to a close, at least in its most restrictive form.

Innovation vs. Control: An Ongoing Tension

The core of this regulatory push lies in the tension between fostering innovation and maintaining control. Regulators argue that Apple's previous policies stifled innovation by creating high barriers to entry, limiting developer choices, and favoring Apple's own services. By opening up distribution and payment channels, the hope is to unlock new forms of creativity, business models, and competitive offerings that can benefit consumers. On the other hand, Apple has consistently maintained that its tightly controlled ecosystem is essential for security, privacy, and a consistent user experience. The company believes that giving users and developers more choices inherently introduces greater risks, such as increased exposure to malware or fraudulent transactions. The safeguards Apple has implemented (notarization, marketplace authorization, restrictions for minors) are an attempt to navigate this tension, to open the platform while still preserving what it considers to be its core values. This delicate balance will be an ongoing subject of debate and adjustment.

Impact on Apple's Revenue Model

Apple's services revenue, largely driven by App Store commissions, has been a major growth engine for the company. These changes, particularly the reduction in commissions and the introduction of the Core Technology Commission (CTC) for off-App Store distribution, will undoubtedly impact Apple's financial model. While Apple aims to recoup value through the CTC and by retaining a fee for web-linked transactions, the overall shift could lead to a re-evaluation of its services strategy. The company might explore new revenue streams, further diversify its services offerings, or adjust its pricing models in other areas to offset potential impacts on App Store revenue. The long-term financial implications for Apple will depend on how many developers choose alternative paths and the success of those new avenues.

The Future of App Stores and Digital Marketplaces

The introduction of alternative app marketplaces could lead to a more diverse and specialized app distribution landscape. We might see niche app stores catering to specific types of apps (e.g., gaming-focused, productivity tools, educational content), or marketplaces emerging with unique business models, such as subscription-based app access or ad-supported distribution. This could foster a more dynamic market, but also one where users need to be more discerning about where they download their apps.

In conclusion, Apple's announcement for Brazil is a clear signal that the company's traditional stronghold over its iOS ecosystem is being systematically challenged and reshaped by global regulatory forces. While presenting complexities and new responsibilities for both developers and users, these changes ultimately aim to foster a more competitive, innovative, and user-centric digital environment. Brazil's move is not just a local event; it's a chapter in the evolving global narrative of digital market regulation, setting a course for a more open and diverse future for mobile applications. The coming years will reveal how this new balance of power and choice plays out across the world.

Tag: App Store

This article, "Apple Announces Major App Store Changes on iOS in Brazil" first appeared on MacRumors.com

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