U.S. tech giant Apple (AAPL) is facing another anti-competition probe – this time in Brazil.
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The Brazilian regulator, the General Superintendence of the Administrative Council of Economic Defense (CADE), said it had recommended a “conviction” of Apple over allegations of anti-competitive conduct related to its iOS operating system.
Abusive Practices
CADE said the decision stemmed from an investigation “that found abusive practices adopted by the company, such as the imposition of the exclusive use of its payment system by application developers and the restriction on the distribution and marketing of third-party digital services.”
The case followed a 2022 complaint filed by Brazilian e-commerce companies, including MercadoLibre (MELI), that accused Apple of abusing its dominant position in the distribution of applications for iOS devices, the statement said.
MercadoLibre’s complaint, filed in 2022 in Brazil and Mexico, accuses Apple of imposing a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books, and written content.
Brazil Bashing
“The investigation revealed a set of restrictive conducts related to the sale of digital content within the Apple ecosystem—especially the prohibition of the marketing of third-party digital services and the requirement that developers exclusively use the company’s own payment system for transactions involving digital goods or services,” the regulator said.
This is not the first issue faced by Apple in Brazil. Back in March 2021, Brazil’s consumer protection foundation, Procon, fined Apple for selling iPhones without a charger. In July 2022, Apple, Google (GOOGL), Microsoft (MSFT) and Amazon (AMZN) were accused of buying gold illegally mined in Brazil.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 16 Buy, 9 Hold and 4 Sell ratings. Its highest price target is $300. AAPL stock’s consensus price target is $226.54 implying a 10.42% upside.
