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The Russian Federal Antimonopoly Service has fined Apple for abusing its dominant market position regarding the App Store's payment rules

1 cover Russia's FAS

It's being reported this morning that the Russian Federal Antimonopoly Service (FAS) has been issued a fine of US$17.4 million (1.2 billion rubles) against Apple for the reason that it abuses its dominant market position. The agency claims that Apple insists that developers in Russia must use its Apple Pay system. It considers this a serious offence. Officials stated  that "Apple requires Russian iOS app developers to use the company’s payment tool in their apps." Apple must pay the fine  within two months.

According to the FAS, App Store rules prohibit developers of iOS apps from informing customers about the possibility of purchasing apps outside the store and using other payment methods. The company asked developers to remove referential backlinks and change the app’s functionality. This way, it will not be able to direct signups to external sites. If the app does not keep to this policy, Apple will not allow the app to be in its App Store.

Apple banned Russian developers from informing buyers of apps in the App Store about alternative payment methods, according to the regulator. In July last year, a Moscow court fined Apple 2 million rubles (about US$29,000) for refusing to localize Russian data. The FAS ruled that Apple violated antitrust laws in the summer of 2022 for abusing its market dominance.

The FAS claims that the fine will come in the form of a percentage of turnover. According to FAS officials, the fine will range from 0.01 – 0.15% of the company’s annual revenue in the Russian Federation. FAS notes that the amount of the turnover penalty will be distributed after the investigation.

Considering that Apple announced its withdrawal from Russia early in the ongoing conflict between Russia and Ukraine, it's not immediately clear how the fine will be enforced.

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