Apple Taking Legal Action Against Russia’s Market Watchdog in IAP System Feud

BY Anu Joy

Published 6 Dec 2021

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Back in October, Russia filed an antitrust case against Apple and accused it of not allowing app developers to inform customers of alternate payment options in the App Store. According to RT, the iPhone maker has commenced legal proceedings against Federal Antimonopoly Service (FAS) regarding the dispute.

Earlier this year, the FAS submitted a request to the court for Apple to “stop abuse in the market.” This forced the tech company to allow developers to promote alternative payments to its IAP system. However, the iPhone maker is now reportedly seeking a judicial review of the warning.

The Russian watchdog first issued the warning in August. It granted Apple a deadline until September 30 to fix the issue, failing which, the tech giant could face a fine. The fine would be calculated based on its revenue in Russia. Following Apple’s failure to adhere to the deadline, the FAS launched proceedings against it citing non-compliance.

Apple takes a 15 to 30 percent commission on revenue generated through the App Store. Developers are not allowed to bypass Apple’s system by linking to their own website or offer alternative methods of payment. It was also reported that the case was filed after some iOS users and developers complained to the Russian regulator that it was sometimes “cheaper to buy a product on the seller’s website rather than on Apple’s platform.”

Earlier this year, in April, Russia fined Apple $12 million for alleged abuse of its position in the mobile applications market. The move followed a complaint from Kaspersky Lab, after Apple removed the Kaspersky Safe Kids app from the App Store. However, Apple struck back and filed a lawsuit to fight the penalty.

Apple is facing a similar situation in the US, with the court mandating that it should allow third-party payment methods in the App Store. However, a recent legal filing indicated that even though Apple intends to comply, it will still collect its commission.

[Via RT]