Apple Takes Russia to Court Over App Store Alternative Payments Issue

Isabella James, Tech Times 06 December 2021, 02:12 am

Apple is taking legal action against Russia following a ruling in the country that allows app developers to include payment alternatives to the App Store's payment system.

Russia's Federal Antimonopoly Service initially asked Apple to make changes to its policy to comply with its ruling, but the tech giant objected to the ruling and did not do as the Federal Antimonopoly Service directed.

Apple is facing a similar legal issue in the United States. The tech company has until Dec. 9 to comply and allow developers to include alternative payment options.

Apple Takes Russia to Court

Apple is taking Russia to court over an issue over the payment system of the App Store.

The tech giant wants a judicial review following a ruling by the latter's Federal Antimonopoly Service (FAS) that allows app developers to include other payment options aside from the in-app payment system of Apple Store.

According to a report by Engadget, "FAS gave Apple until September 30th to alter its policies, but the company declined to change its rules despite the threat of a fine."

Per a report by 9to5Mac, "Apple takes a 15% to 30% cut of revenue generated through the App Store, and apps on iPhone and iPad are only distributed through the App Store."

This, according to the 9to5Mac report, includes monthly subscription payments for apps like Netflix and Spotify.

The report also added that the FAS has already started legal proceedings against Apple over its non-compliance with the ruling.

Similar Legal Battle in US

Both reports by Engadget and 9to5Mac mention that Apple is also having a similar legal issue in the United States.

"The judge in Epic's lawsuit against Apple ordered the tech firm to let App Store developers point to other payment systems," Engadget says of the legal battle in the U.S. Apple made an appeal but was denied and now the tech giant has until Dec. 9 to comply.

According to the Engadget report, some media apps will get to enjoy exceptions to the App Store's policy next year. Per 90to5Mac, the tech giant is intending to collect a commission from alternative modes of payment.

Apple's Previous Legal Issues in Russia

Russia's ruling on the issue of alternative payment options in the App Store is not the first time that the country and Apple had legal issues.

Russia slapped Apple with a $12 million fine in April over an antitrust violation that the country believed worsened conditions for the tech company's competitors.

In 2017, Apple was found guilty of price-fixing in the country. According to a previous report published here on Tech Times, the FAS accused Apple of telling Russian retailers to fix the prices of the iPhone 5 and iPhone 6.

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Written by Isabella James