Apple has agreed to permit third-party app stores and alternative payment methods on its iOS platform in Brazil, settling a three-year investigation by the country’s antitrust regulator, CADE. The agreement was approved by an internal CADE panel on Tuesday, marking a major shift in Apple’s tightly controlled App Store ecosystem.

Under the terms, Apple will allow developers to use third-party payment processors for in-app purchases or provide links to external websites for transactions. Apple said it will implement the changes in compliance with CADE’s demands but cautioned that these modifications could introduce privacy and security risks for users. “We have worked to maintain protections against some threats, but these safeguards will not eliminate every risk,” the company said in a statement.

The probe began in 2022 after a complaint from Uruguay-based e-commerce platform MercadoLibre, which alleged Apple restricted the distribution of digital goods and in-app purchase options. CADE issued preventive measures against Apple in 2024, and its technical body recommended a ruling against the company earlier this year before the case went to the regulator’s internal panel for final approval.

MercadoLibre acknowledged CADE’s efforts to address competitive challenges posed by iOS and the App Store in Brazil but described the agreement as only “partially” addressing the need for more balanced rules in the market.

The agreement will remain in effect for three years once the new terms become mandatory for app developers. Apple has 105 days to execute the required changes and has also agreed to terminate a judicial complaint it filed against the 2024 preventive measures. Failure to comply could result in a penalty of up to 150 million reais ($27.09 million), CADE noted.