CADE holds public hearing on digital ecosystems in mobile devices

By Natali de Vicente Santos Kapulskis and Sarah Carneiro

On February 19, the Administrative Council for Economic Defense (‘CADE’) will hold a public hearing to discuss competition aspects related to digital ecosystems that include the operating systems for mobile devices iOS by Apple and Android by Google (Alphabet).

The debate seeks to include economic agents, experts, academics, civil society organisations and other interested parties, with the aim of understanding the challenges faced in the market, especially in the face of the ‘growing number of reports of violations of the economic order related to digital ecosystems for mobile devices’. Contributions can be made orally or in writing, with the deadline for registration or submission being February 12, by emailing audienciapublica@cade.gov.br.

As mentioned in the notice published by CADE (link here), competition in digital ecosystems has already been studied by various antitrust authorities around the world (such as the Netherlands, the UK and Australia), as well as giving rise to various investigations into anti-competitive practices in Brazil and abroad. In Brazil, three cases stand out:

• Google Android (Administrative Enquiry No. 08700.002940/2019-76): investigates Google’s alleged agreements with mobile device manufacturers and mobile network operators to impose restrictions on Android applications and versions.
• Google Play Store (Administrative Enquiry No. 08700.009916/2024-25): investigates alleged restrictions imposed by Google on the use of applications or payment systems other than Google Play on the Android system; and
• Apple App Store (Administrative Process No. 08700.009531/2022-04 and voluntary appeal no. 08700.009932/2024-18): assessment of the alleged imposition of restrictions by Apple on the use of applications or payment systems other than the iOS system. A preventive measure was granted to contain anti-competitive effects arising from the terms and conditions of use of the Apple Store, which was later suspended by court order.

While the debate on Bill No. 2,768/20222, which regulates the organisation, functioning and operation of digital platforms that offer services to the Brazilian public, is still going on in Congress, the public hearing simbolizes a move by CADE to assert itself as the body responsible for regulating digital markets. This position is in line with the recommendation of the Ministry of Finance’s Secretariat for Economic Reforms in its report ‘Economic and Competition Aspects of Digital Platforms: Considerations on the Scenario in Brazil and Recommendations for Regulatory and Public Policy Improvements’, which we commented on in a LinkedIn post (link here), for CADE to take on the role of regulating digital markets.

Our team is available to make contributions to the public hearing or to assist you in this process.

📅 When? February 19, 2pm

📍 Where? Live broadcast on CADE’s YouTube channel and hybrid participation (in person and online)

📩 Registration? Until February 12 by email: audienciapublica@cade.gov.br

This bulletin is for information purposes only and should not be relied upon to obtain legal advice on any of the topics covered here. For additional information, please contact the leaders of the Competition Team.

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