Apple has paid $12.12 million to Russia for antitrust practices, another fine is pending

In this article (4)
Apple’s decision to stop product sales in Russia over the war in Ukraine has not saved the company expenses, stemming from the multiple antitrust investigations that are going on. One of them has reportedly concluded with a $12.12 million fine over the Cupertino Company breaking monopoly legislation.
This particular case goes back to 2020, when the Russian Federal Antimonopoly Service (FAS) concluded that Apple is receiving an unfair advantage through its dedicated AppStore. The case has taken years to revolve, but the competition regulator finally concluded that Apple owes Russia a massive amount of money. Naturally, Apple “respectfully disagrees” and plans to appeal this decision, even though reports from Reuters point to the fine being already paid out.
All of this was initiated through Kaspersky Labs — a company renowned for its antivirus software — when its Safe Kids app was rejected as per AppStore internal regulations. Anton Gorelkin — a committee member on information and communications — went on record stating that the fine isn’t meant to be damaging to Apple, but to be noticeable enough to send a message to Big Tech.
But as we all know, sometimes, when it rains — it pours. Russia’s Federal Antimonopoly Service (FAS) is gaining on Apple with another fine, this time for $17.4 million. This one is related to the AppStore’s way of processing payments and more specifically, the lack of options that developers have when it comes to choosing how they bill their customers.
As per Reuters’ report, Russia sees Apple’s rules as abuse over its dominant position on the iOS market. Furthermore, the big, red, flashing light is related to Apple’s prohibition of developers to point users to payment solutions outside of the AppStore itself.
This is yet another instance of Apple being pursued by legislators worldwide over the way it runs its AppStore. This isn’t something unique to Apple either, as Google was recently forced through law to open up Android to third-party stores in India. As more and more lawsuits are being won against Big Tech companies, one cant help but wonder what the future of mobile digital goods will look like.
Questions & Answers
Q.What was the specific antitrust issue that led to the $12.12 million fine against Apple?
What was the specific antitrust issue that led to the $12.12 million fine against Apple?
The Russian Federal Antimonopoly Service concluded in 2020 that Apple was gaining an unfair advantage through its dedicated AppStore. This specific case originated from Kaspersky Labs' Safe Kids app being rejected due to AppStore regulations.
Q.What is the reason for the additional $17.4 million fine that Russia's FAS is pursuing against Apple?
What is the reason for the additional $17.4 million fine that Russia's FAS is pursuing against Apple?
This pending fine relates to the AppStore's payment processing methods and the limited options developers have for billing customers. Russia considers Apple's prohibition on developers pointing users to external payment solutions an abuse of its dominant market position.
Q.How has Apple responded to the $12.12 million fine from the Russian Federal Antimonopoly Service?
How has Apple responded to the $12.12 million fine from the Russian Federal Antimonopoly Service?
Apple respectfully disagrees with the decision and plans to appeal it. However, reports indicate that the fine has already been paid out, despite the company's disagreement.
Reader pulse
Is Apple's AppStore strategy sustainable?
22,559 votes so far