Russia fines Apple $12 million for antitrust violation
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Apple has just been fined $12M by Russian antitrust authorities, according to a report from The Moscow Times. The tech giant has been sued by Kaspersky, a large cybersecurity company, for unfair treatment and an antitrust violation—something that’s been getting Apple into hot water quite a bit lately, it seems.
Apple was found to have abused its dominant position in the distribution of mobile applications on the iOS operating system through a series of actions that led to a competitive advantage for its own products, and at the same time worsening the distribution conditions for competing products.
The information was originally released in a statement from Russia’s Federal Antimonopoly Service, or FAS.
It turns out that back in 2018, Kaspersky was updating its Safe Kids parental control app, but was unjustly blocked from Apple. At the exact same time, however, Apple released its own competing feature called Screen Time as part of iOS 12.
Now that Kaspersky has won the lawsuit, the Russian court is ordering the Cupertino giant to do more than shell out twelve million dollars.
In addition, Apple will be forced to change their own terms and conditions that allow them to “reject third-party applications from the App Store for any reason, even if they meet all requirements.” The court has also ordered that Apple make sure that “in-house apps do not take precedence over third-party apps.”
Apple is currently appealing the fine, arguing that its reason for blocking Safe Kids had nothing to do with competing services. Rather, the company said that Kapersky’s app was putting “users’ privacy and security at risk” using highly invasive technology.
Questions & Answers
Q.What specific actions did Apple take that led to the antitrust violation?
What specific actions did Apple take that led to the antitrust violation?
Apple was found to have abused its dominant position by worsening distribution conditions for competing products while gaining a competitive advantage for its own. This included blocking Kaspersky's Safe Kids app while simultaneously releasing its own competing Screen Time feature.
Q.What changes must Apple make to its App Store policies as a result of the ruling?
What changes must Apple make to its App Store policies as a result of the ruling?
Apple must change terms allowing it to reject third-party apps for any reason, even if they meet requirements. It also needs to ensure its own in-house apps do not take precedence over third-party applications.
Q.What is Apple's defence against the antitrust ruling and fine?
What is Apple's defence against the antitrust ruling and fine?
Apple is appealing the fine. It argues that Kaspersky's Safe Kids app was blocked because it put users' privacy and security at risk due to its highly invasive technology, not because of competing services.