Epic accuses Apple of lobbying to have government Trump harm Brazil

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Tim Sweeney, CEO of Epic Games, claims Apple is using lobbyists in Washington to undermine relations between Brazil and the United States. This action, according to Sweeney, is a response to Brazil’s Administrative Council for Economic Defense (Cade) ordering Apple to allow external virtual stores on its iPhone operating system. Sweeney asserted that Apple is attempting to damage bilateral relations to maintain its ability to break laws and collect illegal fees. Apple has denied these statements, characterizing them as false. The company stated that it continues to work with Brazilian developers and has reached an agreement with Cade, which includes reduced commissions and the allowance of alternative payment and app distribution methods. Apple also emphasized its cooperation with regulatory agencies in Brazil to uphold safeguards within the digital environment. Further allegations suggest that Apple’s actions extend to lobbying efforts against Brazil’s interests. Public documents from the U.S. Trade Representative (USTR) indicate commercial pressure against Brazil, although they do not identify Apple as the instigator of investigations or tariff applications. The USTR has reportedly threatened international partners with tariffs for implementing regulations that limit Apple’s control over app distribution.

US Imposes New Tariffs on Brazilian Digital Trade and Payments Amidst Trump Order.

Under an order from the Trump administration, the USTR imposed an additional 25% tariff on most Brazilian imports, which took effect on July 22. Digital commerce and payment services were cited as justifications for this surcharge. Public documents show that the USTR suggested to President Trump the application of two rounds of tariffs on Brazilian products, potentially reaching up to 37.5%. The tariff implemented on July 22 specifically targeted Brazilian practices in digital trade and payment services, among other reasons. This report is based on information from Tiago Ribas in Folha de S.Paulo.

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