Apple pays Russia a fine of $13.7 million, imposed for abusing its dominant position with the App Store

Apple has settled a Russian fine of 1.2 billion roubles ($13.65 million), according to Russia’s FAS antitrust agency. The fine was imposed due to allegations of Apple abusing its dominant market position in relation to in-app payments, as per a report by Reuters.

Apple had previously expressed a “respectful disagreement” with the FAS ruling, contending that the distribution of apps through its iOS operating system did not unfairly favour its products.

Russia’s anti-monopoly watchdog, FAS, announced on Monday that it received the payment following a November ruling.

The ruling found Apple guilty of preventing app developers from informing customers that they could make purchases outside of the App Store. The payment will contribute directly to the Russian budget, supporting the government’s financial needs amid increased defense spending related to the conflict in Ukraine.

This dispute between Apple and Russia’s competition regulator predates the invasion of Ukraine in February 2022, and it is not the first time Apple has faced fines in the country.

In addition to the recent fine, Apple paid a 906 million roubles ($10.1 million) fine a year earlier for a different violation of antimonopoly law, as reported by the FAS. Other Western tech companies, including Google, have also faced fines following action by the FAS in recent years.

American companies, including Apple, must seek permission from the US Treasury’s Office of Foreign Assets Control to pay fines imposed by the Russian government.

Following the outbreak of the war in Ukraine, Western sanctions prompted several tech companies to cease operations in Russia. Apple halted the sales of its physical products in 2022, but its App Store and some subscription services continue to operate.

Although Apple relinquished its office in Moscow at the end of 2022, it still maintains two legal entities in the country.

Despite the restrictions, Apple has removed apps from Russian propaganda outlets and sanctioned Russian banks from its mobile store.

However, iPhones remain prevalent in Russia, with many users accessing the latest models through imports from third countries. Notably, the iPhone 15 is available at a significant markup compared to the US prices.

Apple’s App Store policies have faced scrutiny globally, with a US federal court finding that its rules wrongly prevent developers from directing customers outside their apps. Apple recently adjusted its rules in the US to comply with this ruling. Additionally, new EU legislation is compelling Apple to allow “sideloading,” allowing iPhone users to download apps from sources other than the App Store.

(With inputs from agencies)

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