Apple fined $12.1M by Russia for allegedly abusing dominant position with App Store

According to a new report, Russia’s Federal Anti-Monopoly Service has fined Apple $12 million for alleged abuse of its dominant position in the mobile applications market. According to the FAS, the Cupertino tech giant’s distribution of apps through iOS gives its products an unfair competitive advantage.

Apple fined $12.1M by Russia alleged app market abuse

In August 2020, the Russian Federal Antimonopoly Service (FAS) ruled that Apple had abused its dominant position in the market through its App Store. In August’s ruling, Apple was ordered to remove provisions giving it the right to reject third-party apps from its 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 in response. “They now have 13 apps on the App Store and we have processed hundreds of updates for them.”

In a follow-up on Tuesday, it was revealed that Apple would be fined 906.3 million roubles ($12.1 million) by the anti-competition regulator. In its ruling, FAS said Apple’s distribution of apps through its App Store gave its own products a competitive disadvantage. Apple “respectfully disagreed” with the ruling and will be appealing it in the future.

According to Russia’s State Duma committee on information and communications member Anton Gorelkin, the fine would not be a damaging monetary value to Apple, however, 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 $12M fine is Russia’s latest attempt to try and gain more control over the activities of tech companies like Apple. To follow the 2019 legislation that took effect in April, Apple allows users to select the apps that they want to install on their iPhone during device setup. This includes a list of third-party apps like web browsers, messengers, email apps, and more.

via Reuters