Brazil Intensifies Scrutiny Over Apple’s NFC Practices on iPhones
Apple is currently under heightened examination by Brazil’s Administrative Council for Economic Defense (CADE) concerning its Near Field Communication (NFC) policies on iPhones. The investigation centers on allegations that Apple may be engaging in anticompetitive behavior by restricting third-party access to the iPhone’s NFC capabilities, potentially favoring its own services like Apple Pay.
Background of the Investigation
The inquiry began in 2025 when Brazil’s central bank, Banco Central, and the banking association Febraban raised concerns about Apple’s NFC policies. They alleged that Apple was limiting third-party payment providers’ access to the iPhone’s NFC functionality, thereby giving an undue advantage to Apple Pay. This led CADE to initiate a formal investigation into Apple’s practices.
Apple’s Defense
In response to these allegations, Apple has maintained that its practices are lawful and do not harm competition. The company argues that Brazilian law does not prohibit it from charging fees for its services and points out that it holds only a 10% share of the country’s smartphone market. Apple also highlights that since 2024, third-party developers have had access to the iPhone’s NFC capabilities. Furthermore, Apple contends that the Brazilian market offers a variety of payment options and that Apple Pay does not negatively impact consumers or exclude competitors.
Recent Developments
Despite Apple’s defense, CADE has intensified its investigation. On March 17, 2026, the agency issued a formal notice to Apple, requesting detailed information on fees, technical requirements, and contracts with developers in Brazil. Apple has been given until March 30 to provide this information.
The Role of PIX
A significant aspect of this investigation involves PIX, a free and instant payment system introduced by Banco Central in 2020. PIX has become the most widely used payment method in Brazil. In 2025, Banco Central introduced a contactless protocol for PIX. While Google adopted this feature, Apple declined, stating that it was non-essential for Brazilian consumers, who predominantly use PIX via QR codes rather than contactless methods.
Regulatory Implications
Apple appears to be attempting to avoid classification as a Payment Transaction Initiator, a regulatory category overseen by Banco Central. This classification would impose obligations related to interoperability and access, potentially affecting Apple’s control over its payment systems.
Conclusion
As the March 30 deadline approaches, the outcome of CADE’s investigation could have significant implications for Apple’s operations in Brazil. The case underscores the ongoing global debate over tech companies’ control over their platforms and the balance between innovation and fair competition.
