Apple Attempts to Stop Developers Promoting Alternative Payment Options for In-App Purchases in Russia

[MacRumors]

Apple is undertaking legal action in Russia to prevent developers from promoting alternative payment methods for in-app purchases that bypass the company's payment system, RT reports.

Apple's lawsuit attempts to challenge Russia's Federal Antimonopoly Service (FAS) and the request it made to the company in August to "stop abuse in the market." The FAS's request would allow developers to inform users about alternative payment options for in-app purchases, but Apple is seeking to have this withdrawn by judicial review.

The FAS's demand was based on the fact that some users and developers had notified it that some in-app purchases were cheaper outside the App Store due to skirting Apple's 15 to 30 percent commission, but this is not allowed to be highlighted in apps due to Apple's rules.

Apple was given a deadline of September 30 to allow developers to promote alternative payment methods and was cautioned that a failure to abide by the request could result in a fine based on the company's revenue in Russia. In October, the FAS initiated proceedings against Apple for non-compliance.

The development is Apple's latest point of contention in Russia. In March, Apple was forced to comply with a request from the Russian government to show users a list of government-approved apps to download during initial device setup, and in April, the company was fined $12 million for violating anti-monopoly rules with the App Store.

Article Link: Apple Attempts to Stop Developers Promoting Alternative Payment Options for In-App Purchases in Russia

 

[now i see it]

There’s a certain satisfaction seeing this all go down

 

[contacos]

In Russia? Maybe in the EU but in Russia? Good luck with that. That’s like telling China what to do

 

[MauiPa]

Don’t see what the big deal is, alternate payment systems also include showing the option to pay through Apple, right? Right? Oh. Now I get it

I have to admit, I do go direct to web sites when I shop Amazon or on travel sites, I certainly prefer to give money directly. How come Amazon doesn’t advertise that? Pathetic

 

[Scipster]

What if Apple set the commission rate on a per app basis? That way they could compete directly with the developer and let the consumer choose how much they want to spend.

It's like going to the gas station that offers a 10 cent discount if you pay in cash. I'll normally pay with cash, but sometimes I'll use my card if they offer a greater discount (e.g. get 6% back on gasoline, etc).

Apple offering a negative commission would be pretty sweet, not going to lie. They could even use holiday discounts to encourage users to spend, just like the iTunes store!

 

[joshwenke]

Apple is undetaking legal action

Typo in the third word, @Hartley

 

[Nuno Lopes]

Given current Russian border tensions with Ukraine, a huge Nato problem, this is mostly la politique marketing initiative targeting western politics to favor the Apple App Store policies cause in their own territory.

 

[laptech]

Now you can see why Apple likes to draw out investigations and court cases because whilst the investigations and court cases are on going, nothing can change with regards to existing app store rules and policies until Apple is either found innocent or guilty which means Apple can still take legal action against those who break it's app store rules.

 

[I7guy]

There’s a certain satisfaction in seeing Apple filing legal action.

 

[Biu_miu]

Given current Russian border tensions with Ukraine, a huge Nato problem, this is mostly la politique marketing initiative targeting western politics to favor the Apple App Store policies cause in their own territory.

I sat on this sentence for a few minutes and still couldn't puzzle, how is boarder situation between Ukraine and Russia is connected to AppStore fees?

 

[Victor Mortimer]

Typo in the third word, @Hartley

That's not a typo. That just means Apple's lawyers were working from home, and as is the fashion these days, not bothering putting on pants, thus taking the action in their underwear. And when it's used in a compound word like that, "undies" loses the "i". Thus you get the word "undetaking".

 

[Xtir]

Given current Russian border tensions with Ukraine, a huge Nato problem, this is mostly la politique marketing initiative targeting western politics to favor the Apple App Store policies cause in their own territory.

You think?

 

[Lounge vibes 05]

Don’t see what the big deal is, alternate payment systems also include showing the option to pay through Apple, right? Right? Oh. Now I get it

I have to admit, I do go direct to web sites when I shop Amazon or on travel sites, I certainly prefer to give money directly. How come Amazon doesn’t advertise that? Pathetic

Apple doesn’t make any money from physical Amazon purchases through the app I believe.
It’s just in app purchases relating to the app, not actual physical goods

 

[vipergts2207]

There’s a certain satisfaction in seeing Apple filing legal action.

It’s Russia. The case will go whichever way the powers that be want it to go.

 

[mscice]

I don't understand why apple won't allow payments in crypto or other sorts off payments ... because they don't get a cut?

 

[collin_]

Lol. Didn’t Apple recently state that they would stop banning developers from linking to alternative payment services in the wake of the South Korea and California litigation? (Which, to be clear, is textbook anticompetitive behavior.)

Apple will act ethical and benevolent in press releases and then fight tooth and nail in court trying to achieve whatever outcome makes them the most money, no matter how sordid it is.

And don’t even get me started on how many of their executives and board members (including Tim Cook) are also board members of lobbying organizations that fight against basically everything Apple claims to stand for (including legislation intended to tackle climate change).

I love their products, and there are a lot of truly good people at the company. But this apple is growing more and more rotten at its core, and they are sorely mistaken if they think that we, their customers, don’t notice.

 

[MrDerby01]

In Russia? Maybe in the EU but in Russia? Good luck with that. That’s like telling China what to do

apple's monopolistic behavior will never be ok regardless of where the customer is from.

 

[Cosmosent]

Dec 9th is Thursday, yet macrumors.com is still NOT covering what could be the most-important Day in the History of the App Store !

A realistic end-of-Jan PT is $137, Rod Hall's $142 PT minus five bucks !

The market is Oblivious to the Obvious !

A new so-called pro stock Analyst started coverage of AAPL today, with a, get this, $191 price target.

I laughed when I heard that !

That new Analyst clearing has NOT been following the "trust busting" efforts directed towards Apple, & clearly is NOT aware of the significance of Thursday, OR Jan 9th if Apple gets a 30-day Stay.

This isn't Rocket Science, Apple is about to get slammed, BIG time !

 

[MacLawyer]

Looks like Apple is trying to buck a worldwide trend. Poor Tim won't be able to buy coffee at Cafe Macs.

 

[0924487]

What if Apple set the commission rate on a per app basis? That way they could compete directly with the developer and let the consumer choose how much they want to spend.

It's like going to the gas station that offers a 10 cent discount if you pay in cash. I'll normally pay with cash, but sometimes I'll use my card if they offer a greater discount (e.g. get 6% back on gasoline, etc).

Apple offering a negative commission would be pretty sweet, not going to lie. They could even use holiday discounts to encourage users to spend, just like the iTunes store!

If Apple has to compete rather than set the price, it becomes unprofitable. They would only get accounting revenue, and not economic profit.

 

[0924487]

I don't understand why apple won't allow payments in crypto or other sorts off payments ... because they don't get a cut?

It’s difficult to take a cut of it’s not through Apple.

Other than evading the Apple tax, there is no real benefit of going 3rd party for developers.

 

[0924487]

China will not do it because users know how to get around it by depositing to merchant accounts in AliPay or WeChat.

For example, if you have credits, you can buy Audible books on iOS.

 

[0924487]

Now you can see why Apple likes to draw out investigations and court cases because whilst the investigations and court cases are on going, nothing can change with regards to existing app store rules and policies until Apple is either found innocent or guilty which means Apple can still take legal action against those who break it's app store rules.

That‘s why I think rule of law has its drawbacks. I would word the injunction order such that if Apple decides to dispute or not comply before that date, Apple will be given a fine based on how long they delay the mandate, and at the same time, block Apple servers in Russia so iPhones can’t even be activated, and block all sales of Apple products until further notice.

 

[huge_apple_fangirl]

We‘ll see how this goes… Russia‘s not exactly known for its fair court system (whatever you think of Apple’s view here).
it makes me wonder, though: China has been suspiciously silent on this whole issue. If they decide to get involved, how will Apple react ?

 

[Sophisticatednut]

Oh well look at that.
Apple is a curb defender of democracy and human rights.
Putin tells apple to remove VPNs and other essential apps for freedom.
Yes Ms Putin, apple always follow local laws as there’s nothing we can do.
Putin order apple to lower their revenue by 1%
Screech, you will take the nicked out of apples cold dead hands as we fight to the death for and litigation to postpone any ruling.

How the double standards are so clear when apple always follow local laws… when convenient