Apple fined $12M in Russia over alleged app market abuse

Posted:
in iOS
Russia has fined Apple $12 million for breaking monopoly laws, over claims the iPhone maker is allegedly abusing its dominant position in the mobile apps marketplace.

Russia's State Duma
Russia's State Duma


In August 2020, the Russian Federal Antimonopoly Service (FAS) ruled that Apple's App Store gives Apple an unfair advantage in the digital app economy. In a follow-up on Tuesday, it was revealed Apple would be fined $12 million by the anti-competition regulator.

In its fine issued over the ruling, FAS said Apple's distribution of apps through iOS gave its own products a competitive disadvantage, reports Reuters. Apple "respectfully disagreed" with the ruling, and plans to appeal it.

The fine of 906.3 million roubles ($12.1 million) is a turnover fine for violating the anti-monopoly legislation.

In August's ruling, Apple was ordered to remove provisions in its policies that gave it the right to reject apps from the App Store. The complaint itself stemmed from Kaspersky Lab, which had seen its Safe Kids application declined by Apple.

"We worked with Kaspersky to get their app in compliance with rules that were put in place to protect children," said Apple. "They now have 13 apps on the App Store and we have processed hundreds of updates for them."

According to to Russia's State Duma committee on information and communications member Anton Gorelkin, the fine wouldn't be damaging to Apple, but it would be noticeable in its financial statements. Gorelkin then said "Gradually we are approaching the kind of seriousness in the conversation with Big Tech that has long been on display in the West."

The fine is the latest attempt by Russia to try and gain more control over the activities of tech companies like Apple. To follow 2019 legislation that took effect in April, Apple now offers a selection of government-approved apps to be installed by users when they first set up an iPhone and other Apple devices.

Russian legislators have also attempted to introduce bills that would cap Apple's App Store commission at 20%, and also open up the door to third-party digital storefronts on Apple devices.

Comments

  • Reply 1 of 12
    mac_dogmac_dog Posts: 886member
    I guess in Russia, you’re guilty until proven innocent. 
    magman1979jony0watto_cobra
  • Reply 2 of 12
    prolineproline Posts: 201member
    mac_dog said:
    I guess in Russia, you’re guilty until proven innocent. 
    In chess you have predictable rules and unpredictable results. In Russia you have predictable results and unpredictable rules.

    - Gary Kasparov
    lkruppfotoformatmagman1979fastasleeppslicecroprjony0watto_cobra
  • Reply 3 of 12
    22july201322july2013 Posts: 2,314member
    I'm not sure how important a market Russia is to Apple, financially. However, some country, somewhere, will be the first country to put rules in that are so onerous that Apple will have to pull out. At this rate that country might be Russia. Then Russian consumers will have to get their iPhones from the black market.
    edited April 27 magman1979pslicejony0watto_cobra
  • Reply 4 of 12
    sflocalsflocal Posts: 5,605member
    This should be a shot across the bow of every company doing business in Russia.  Russia has now told every tech company that it will tell you what you can do with YOUR product.  That's worrisome.

    Telling Apple that it has a monopoly on what is Apple's iPhone, and the App Store?  

    Apple (for now) would be best served to pull out of Russia.  Their iPhones will still be desired on the black market anyways.
    aderuttermagman1979pslicejony0watto_cobra
  • Reply 5 of 12
    DAalsethDAalseth Posts: 1,553member
    mac_dog said:
    I guess in Russia, you’re guilty until proven innocent. 
    In Russia you’re guilty if one of the Oligarchy wants you to be.
    edited April 27 Ofermagman1979jony0watto_cobra
  • Reply 6 of 12
    lkrupplkrupp Posts: 9,117member
    I'm not sure how important a market Russia is to Apple, financially. However, some country, somewhere, will be the first country to put rules in that are so onerous that Apple will have to pull out. At this rate that country might be Russia. Then Russian consumers will have to get their iPhones from the black market.
    Does Russia even manufacture any smartphones? Seems outside their technical abilities.
    magman1979jony0watto_cobra
  • Reply 7 of 12
    Rayz2016Rayz2016 Posts: 6,757member
    And straight into Putin’s back pocket. 
    magman1979jony0watto_cobra
  • Reply 8 of 12
    MacProMacPro Posts: 19,307member
    Russia against monopolies, that's rich!
    jony0watto_cobra
  • Reply 9 of 12
    pslicepslice Posts: 120member
    Russia’s courts/government are nothing but a bunch of killers and thieves. I hope Apple pulls out and does not pay. 
    jony0watto_cobra
  • Reply 10 of 12
    wizard69wizard69 Posts: 13,377member
    mac_dog said:
    I guess in Russia, you’re guilty until proven innocent. 

    Actually Russia is just reflecting what the rest of the world has recently taken notice of.   There is no doubt that Apples policies put it in an anti competitive position.   Plus their use of censorship to remove political ideas they deem offensive is gone a bit overboard of late.   So no one at Apple nor the public at large should be surprised by the push back Apple is getting.
  • Reply 11 of 12
    wizard69wizard69 Posts: 13,377member
    sflocal said:
    This should be a shot across the bow of every company doing business in Russia.  Russia has now told every tech company that it will tell you what you can do with YOUR product.  That's worrisome.

    Telling Apple that it has a monopoly on what is Apple's iPhone, and the App Store?  

    Apple (for now) would be best served to pull out of Russia.  Their iPhones will still be desired on the black market anyways.

    The fact that Apple has a monopoly on that App Store has absolutely nothing to do with Russia!    That monopoly was created by Apple for their benefit, the question is should it be legal and is it legal considering current law.   App Store is the very definition of a monopoly, in this case for apps on a specific platform.
  • Reply 12 of 12
    badmonkbadmonk Posts: 975member
    Strikes me as a strange amount, I suspect someone’s dacha needed remodeling.
    jony0watto_cobra
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