Russia fines Apple $12 million for alleged App Store market abuse

Apple's App Store on iPhone
Apple’s App Store on iPhone

Russia’s Federal Antimonopoly Service (FAS) said it had fined Apple 906.3 million roubles (US$12 million) for alleged abuse of its dominance in the mobile applications market, in the latest dispute between Moscow and a Western technology firm.

Reuters:

FAS said on Tuesday that U.S. tech giant Apple’s distribution of apps through its iOS operating system gave its own products a competitive advantage.

Apple said it “respectfully disagreed” with the FAS ruling and that it would appeal it.

FAS determined in August 2020 that Apple had abused its dominant position and then issued a directive requiring the U.S. company to remove provisions giving it the right to reject third-party apps from its App Store.

“We worked with Kaspersky to get their app in compliance with rules that were put in place to protect children,” Apple said in a statement. “They now have 13 apps on the App Store and we have processed hundreds of updates for them.”

MacDailyNews Take: The operative term here is “Apple’s.” Possessive, Russia.

It’s Apple’s App Store and Apple’s platform, so Apple sets the policies.

Again, Apple doesn’t have a monopoly in smartphones. Without a monopoly, there simply cannot be monopoly abuse.

Worldwide Mobile Operating System market share (StatCounter, March 2021):

• Android: 71.83%
• iOS: 27.41%

I don’t think anybody reasonable is going to come to the conclusion that Apple is a monopoly. Our share is much more modest. We don’t have a dominant position in any market… We are not a monopoly.Apple CEO Tim Cook, June 2019

13 Comments

      1. It has been said that the best locksmiths make the best burglars. It’s no different in the digital realm. That being said, the rule of law provides different incentives to different security players. One would have to ask oneself, if national security was at stake, do the incentives align for you to purchase your security from a foreign supplier?

        “There’s always been a bit of suspicion about Kaspersky Lab. The company’s co-founder and owner, Eugene Kaspersky, was educated at a KGB-run technical academy beginning when he was a teenager, and then served in Soviet military intelligence. (Many security experts of all nationalities working in the private sector have similar backgrounds.)

        The company’s relationship with the Kremlin has never been clear, though Western experts on Russia think there’s no way Eugene Kaspersky could have become a billionaire without having reached an understanding with the government. Under Russian law, any company must open its communications lines to the authorities upon request.”

        https://www.tomsguide.com/us/is-kaspersky-safe,news-25983.html

        That’s the overwhelming consensus. It’s highly improbable that a billionaire-led company based in Russia isn’t sharing massive data with the KGB, even if personally Kaspersky didn’t want to be a stooge for Putin. Russian law requires him to be a stooge for autocrat Putin.

        Same thing in China, where a somewhat cuddlier Pooh bear autocrat has his fingers in all significant corporations operating within Chinese borders and former Chinese-controlled regions.

        Despite the delusions of US power amongst the orange faction, there is no amount of tweeting or pep rallies that will change the incentives these foreign states have to steal data in one way or another within their borders. You do business in an autocratic nation that publicly states repeatedly that their goal is to be the top superpower of the planet, you might as well expect your IP will be stolen.

        That’s why Apple actually has to spread its manufacturing and supply chain to 52 different countries, with the most labor intensive stuff going to China so that Apple can gain access to the market on the selling side. Knowing their IP is eroded constantly, Apple has no choice but to update its iPhone every year, and Apple’s OS software now gets security updates as frequently as Windows ever did. But for whatever reason, all the Fortune 500 companies (con and lib both) have decided its worth it to set up shop in foreign autocratic and corrupt countries.

        I still wouldn’t see a reason to install Kaspersky software if there was any domestic alternative. Not in my lifetime.

    1. True about the general behavior of oligarchs in Russia or their orange maga imitators. But that doesn’t mean Apple didn’t break some laws overseas, intentionally or accidentally. Like every corporation, they flex their muscles hard to squeeze money out of every market. It is good that corporations hav to answer to some regulators. It’s just sad that in about 1/3 of the world, those regulators are self serving corrupt dictators, in another 1/3, those regulators are owned by the very corporations they are supposed to oversee, and in perhaps 1/3 of the world, a relatively efficient bureaucracy of competent professionals actually looks out for fair market access, the rights of small companies, and the well being of individual citizens.

      Bipolar asshats on this forum can’t see the full spectrum, they’re too busy slinging haterade for their red team.

      1. Just shut up brown clown from San Diego. President Trump executed the greatest historical presidential turnaround of the economy in three years, because he is a smart businessman and not a swamp 50-year politician with no business sense or smarts our clueless leader Biden…

      2. EXCUSE ME. Tripolar is what is the new mental condition. Get it RIGHT please. I am also a TRANS tripolar LA artist, I want some respect, do you hear me?

    1. What??? Russia is a petroleum state . https://www.eia.gov/international/content/analysis/countries_long/Russia/russia.pdf It is the largest exporter of natural gas, and one of the largest oil producers. It claims to have the highest coal reserves, not that many other countries want it. Coal is already uneconomic for heating or energy production compared to the natural gas Russia itself sells, plus until recently coal health effects have been well known but under-considered. Best to leave it to steel production and other industrial needs, not for electricity and domestic heating.

      Russia is also thoroughly corrupt from top to bottom, has one of the worst environmental records of any nation, their vodka is truly vile, and their hookers have horrid bolted-on plastic tits.

      While the old timers in America (like you perhaps) think that cheap petroleum from anywhere they can find it is just honky dory, and some former presidents were clearly enamoured with big fake silicone tits, reliance on foreign oil has undermined and weakened the USA. Often during times of GOP presidents. Sorry, but that’s when the foreign military oil adventures always seem to flare up, you can’t deny that. Through it all, the USA stood beside dictators. The USA has long acted like it was a drug addict on the stuff.

      Foreign oil dependency has doomed prior empires. It has had the USA twisted in knots in the mideast for generations now, still blowing the biggest military budget in the world on oilwell and pipeline security, supporting dictators instead of standing up for democracy. Both con and lib. It isn’t even a partisan issue. Facts is facts. The smart thing for the USA to do is STOP BUYING THEIR PRODUCTS.

      North America, Europe, Japan, etc now have the technology to cut the oil drip feed without any real pain. Japan and Europe are already well practiced. They implemented awesome stuff like train networks, offshore wind turbines, and other great infrastructural stuff. Europe is now far in the lead on EV charging and network implementation. Like the computer microchip, electric power systems have gotten very good and cheap. Changeover costs are real, true, but why did we decide to be laggards now? Those are American jobs we’re talking about. We can keep the domestic petrol industries humming in the transition, but it should be a national goal to stop importing oil altogether and go electric as much as possible otherwise. Build out the electric infrastructure and bring the troops home. Electric self-sufficiency from inexhaustable sources (solar) easily beats the costs of foreign oil, if you remember to calculate the military security detail needed to keep the oil flowing. True domestic national security would be just one good reason why a sane, forward-thinking US president would wean good ol’ American motorists off of imported oil as fast as we can. We will all breathe cleaner air as a result too, even if you don’t care about that. Most of us do.

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