Apple’s iOS 26.5 brings new ‘App Installation’ setting to Brazil, paving the way for third-party app stores

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Apple is taking another step toward opening up the iOS ecosystem in Brazil. With the release of iOS 26.5, Brazilian users are now seeing a new “App Installation” option in Settings > Apps, signaling that support for alternative app marketplaces is nearly ready for prime time.

The new setting falls under the “Default Apps” section, where users can already manage preferences for browsers, email clients, payment apps, and more. According to reports, it currently lists only the App Store as an option, but Apple’s own description hints at what’s coming:

“Your default marketplace is at the top and will be used to show recommendations in Spotlight, Siri, Safari, and more. If you’ve added multiple marketplaces, you can change your default marketplace.”

This marks the latest development in Apple’s settlement with Brazil’s competition authority, CADE. Earlier this month, the iOS 26.5 Release Candidate already laid the groundwork for app sideloading in the country following the antitrust resolution.

What This Means for Brazilian Users and Developers

Once alternative marketplaces become available, Brazilian iPhone owners will be able to choose a preferred app store other than Apple’s. This setup mirrors aspects of the EU’s approach but is tailored to Brazil’s agreement with CADE. It emphasizes marketplace-based distribution rather than direct web downloads (like the EU’s Web Distribution option).

Under the terms of the deal:

• Apple can charge a 25% commission on App Store sales (or 10% for qualifying small developers), plus additional fees in certain scenarios.
• Alternative app stores will face a 5% Core Technology Commission.
• Developers gain more flexibility with external payment links and options, though Apple retains some fees on active steering.

The rollout isn’t fully live yet — alternative marketplaces still need to be approved and made available — but the appearance of the “App Installation” setting is a clear indicator that the infrastructure is now in place. Apple has not issued an official statement on the exact timing, but the changes appear imminent.

This development stems from ongoing global regulatory pressure on Apple’s App Store policies. Brazil joins regions like the European Union in forcing greater openness, albeit through a negotiated settlement rather than sweeping legislation like the DMA.

MacDailyNews Take: For most users, the day-to-day experience on iPhone will likely remain centered around the App Store for its security, seamless updates, and integration. However, power users and those seeking more options will soon have new choices.



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