Apple’s grip on iPhone app distribution is loosening in another major market: Brazil.

German technology giant Bosch settled a case with the US Department of Commerce for supplying $72 million-worth of sensor products and software subject to export restrictions to Huawei.

The products falling foul of US rules were Micro-Electro-Mechanical Systems (MEMS) sensors used in smartphones, wearables and vehicles, along with automotive software.

Announcing the $36.2 million settlement, the US department’s Bureau of Industry and Security (BIS) noted Bosch had disclosed the information itself and cooperated with the subsequent proceedings.

BIS explained the products shipped to Huawei or affiliates were covered by the Foreign Direct Product Rule, part of Export Administration Regulations (EAR) restricting the supply of some goods made using specific technology of US origin without a licence.

Shipments found to break the rules were made between 16 September 2020 and 26 September 2024.

Alongside the fine, Bosch must give up profits made as a result of the transactions.  

BIS assistant secretary of commerce for export enforcement David Peters said the company had “several opportunities to avoid these violations had they exercised the increased vigilance BIS has repeatedly said it expects of companies whose transactions are governed by the EAR”.

“Today’s action should serve as a warning to embrace compliance and as an example of the benefits of voluntary self-disclosure.”

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