Apple Facing Russian Investigation Into Alleged Monopolistic App Store Behavior

[MacRumors]

Russia's FAS, or Federal Antimonopoly Service, has launched a formal investigation into Apple over alleged violation of antitrust laws about the App Store and Apple's restrictions that do not allow developers to link to third-party payment methods outside of the platform.

In August, FAS issued a warning to Apple to "stop violating antimonopoly legislation" by not inhibiting developers from directing users to make in-app purchases from outside the App Store, such as on the web. Apple "did not comply with the warning," according to a press release from the agency, and therefore a case has been opened against Apple on the grounds of violating antitrust laws.

"If Apple is found to be in violation of the Competition Law, it could face a turnover penalty on the amount of market revenue," the agency added. FAS stopped short of specifying how much a fine would be or under what timeframe.

Apple is no stranger to being scrutinized in Russia and by the FAS. This past April, the Cupertino tech giant was fined $12 million for violating anti-monopoly rules with the App Store. Just a month earlier, Apple had agreed to comply with the Russian government's request that users be shown government-approved apps to download during initial device setup.

Apple has already announced steps it plans to take early next year to ease App Store restrictions. As part of a deal to close an investigation in Japan, Apple announced in September that it would allow "reader" apps to link to external websites in their apps. These links to external websites can help users set up or manage an account.

Article Link: Apple Facing Russian Investigation Into Alleged Monopolistic App Store Behavior

 

[BootsWalking]

Apple is running out of countries that don't find its business practices anti-competitive.

 

[Adarna]

This is how govts get big tech to compromise their user's privacy. Pressure them on one front and promise to lay off when they capitulate.

Taken another way any company must comply with the lawful orders of govt or else withdraw from that market like what Google did in China.

 

[Wildkraut]

Apple is running out of countries that don't find its business practices anti-competitive.

They probably need an Apple Planet where they can freely exploit THEIR citizens.

 

[Sandstorm]

You've got a nice App Store here. Some opposition apps still remaining.
It would be a shame if something happened to it.

 

[cosmichobo]

Kind of ironic...

 

[HughRR]

Hang on weren’t governments supposed to be providing infrastructure for society but were too incompetent or corrupt to do so and left it to corporate interests? Now they’re throwing in post-hoc regulation as an “oh yeah that” afterthought and pocketing a metric **** ton of cash from fining the corporates.

We can still choose the corporates we use and there is no monopoly I can think of other than government incompetence and greed.

UK here for ref.

 

[ksec]

Adding Russia to the list of market Apple should pulled out as suggested by MR comments.

So it is now, EU, UK, AUS, Japan, South Korea, India, Russia

In case anyone wondering why US is missing. Yes, US is the only country with an on going AntiTrust threat or cases that MR wont suggest pulling out of.

 

[Wildkraut]

Hang on weren’t governments supposed to be providing infrastructure for society but were too incompetent or corrupt to do so and left it to corporate interests? Now they’re throwing in post-hoc regulation as an “oh yeah that” afterthought and pocketing a metric **** ton of cash from fining the corporates.

We can still choose the corporates we use and there is no monopoly I can think of other than government incompetence and greed.

UK here for ref.

It’s also the government’s obligation to enforce competition and keep the economy running stable and healthy now and farer in the future.

This is not only about Russia, Apple is running aground in the whole world. They can’t escape this, and moving out of a country here and there is not an option too.
Specially since they are being hunt in their own country.

Apple IS acting anticompetitive, simply as that… same for Google… both in their different ways.

 

[Wildkraut]

Adding Russia to the list of market Apple should pulled out as suggested by MR comments.

So it is now, EU, UK, AUS, Japan, South Korea, India, Russia

In case anyone wondering why US is missing. Yes, US is the only country with an on going AntiTrust threat or cases that MR wont suggest pulling out of.

? Yep, and if they go that route, we might see Apple Sales Reps. running up and down the beaches trying to illegally sell iDevices out of their jackets.

Hey ? bello iPhones, bello iPhones heyyyyyy belllllllllo iPhones, just 1279$ bello iPhone ?

 

[ValO]

I guess apple can stall this for a few years, but in the end they’ ll have to give in.
Shame, it will open the doors for developers like epic to launch their own stores with their own exclusives.

Perhaps exclusive apps on alternative AppStores should be banned too, that is also ati-competitive , isn’ t it?

 

[ponzicoinbro]

TL;DR

Oligarch mafia want to steal more money from companies after FBI hacked and pwned ransomware group. In the mean time they will use all their brainwashed conspiracy theorists in the west to accuse western governments of being controlled by space lizards.

 

[CB1234]

I wonder if Russia will first investigate Putin for monopolistic hold on power in the country !!

 

[Wildkraut]

I guess apple can stall this for a few years, but in the end they’ ll have to give in.
Shame, it will open the doors for developers like epic to launch their own stores with their own exclusives.

Perhaps exclusive apps on alternative AppStores should be banned too, that is also ati-competitive , isn’ t it?

Hmm maybe generally 1-2 years, but in that case the fines also sums up.

 

[Elijen]

Sounds funny coming from Russia

 

[Wildkraut]

Sounds funny coming from Russia

Well, as if other countries have a much better reputation.

 

[Michael Scrip]

...Apple's restrictions that do not allow developers to link to third-party payment methods outside of the platform.

Is this for a "subscribe on the website" kind of thing? For signing up to external services like Spotify or Netflix?

Or is this a "purchase a 50-pack of jewels in a game" kind of thing? For game upgrades?

If it's the former... I thought Apple will start allowing links developer websites soon.

But if it's the latter... I'm having a hard time figuring out how you will make in-app purchases outside the app.

 

[boyarka]

Apple dug its own grave here: though there are clear advantages with apps being released exclusively and payments also exclusively going trough same platform - this is as monopolistic as things can get.
Blaming it on Russia or "Putin... bad!" does not help here. iPhone, iPad, TV and Watch users are today locked very tight within the Apple ecosystem, and it's about time it's busted open.

 

[Your Royal Highness]

Governments around the world needs to make up for lost taxes due to Covid somehow. Unfortunately, it’s American tech companies that will pay.

 

[miric]

russia, antitrust. Wat? russia just should shut up and be thankful if somebody from the first-world companies wants to do the business on that territory as it is the huge security threat to the whole world.

 

[iwan073]

Is their store… their phone… how’s that a monopoly?
To me it feels like forcing Adidas to allow Nike to sell their stuff in the Adidas store.

 

[deevey]

But if it's the latter... I'm having a hard time figuring out how you will make in-app purchases outside the app.

If you really want to buy the currency <insert fake game money here> you'll be able to buy it from the dev's website via a button on the app and be brought outside to pay for it.

Apps that do it are going to suffer in sales though, checkout abandonment is the #1 reason IAP's work so well.

 

[vipergts2207]

Another day another country investigating Apple on antitrust issues. Where there’s smoke there’s fire.

 

[Michael Scrip]

If you really want to buy the currency <insert fake game money here> you'll be able to buy it from the dev's website via a button on the app and be brought outside to pay for it.

Yeah I understand going to a website to buy something.

I was just wondering how the game will know when you buy something outside of the game.

Will Apple have an API that gets a signal from the outside website to add the currency inside the game?

And if so... is that how Apple will track all purchases made outside the game so they can get their commission?

 

[Futurix]

And the issue can be resolved by allowing Russian government to install some harmless apps on every Apple device sold. Really harmless. Really.

P.S. Apple’s marketshare is minuscule in Russia - it’s too poor of a country. So this whole thing is a sham.