Apple Fined Over $17 Million for Abusing Its Dominant Position In the Market

According to reports, Apple has been penalized once again for abusing its dominant position in the market. Russia’s federal anti-monopoly service (FAS) has slapped the organization with a fine of $17.4 million US dollars for allegedly misleading and limiting its users.

The penalty results from a judgment made in July of last year, when the watchdog found the firm in violation of local regulations with its AppStore guidelines, which have been forcing developers to utilize only the payment system provided by the company itself. 

Given that the fine was determined using the company’s annual revenue in the country, there is no surprise that it is extraordinarily large. When it comes to antitrust violations, FAS had previously threatened to punish foreign IT firms between 0.01 and 0.15 percent of their income.

In the United States, Europe, and Australia, for instance, regulators believe that the AppStore is excessively tightly controlled, and that Apple crosses the boundaries by not allowing third-party payment methods, which is similar to the claim made by the FAS. It however remains to see how regulators from other regions react following this. 

As for this case, FAS has found Apple guilty of misusing its position in the market, and so using it to its advantage by allowing its own payment methods for purchases via AppleStore. Apple has been given the deadline to pay these seventeen million dollars fine in two months. 

App Store rules prohibited iOS app developers from informing in-app customers about the possibility to pay for purchases outside of the App Store, as well as from using alternative payment methods. The company demanded that developers remove links to their own Internet sites and change the functionality of the application to prevent registration forms from leading to external sites”

– Federal Antimonopoly Service

It remains to be seen how the firm reacts to this, however let us know your thoughts on this in the comments, and till then, we will keep you informed of any update as new information becomes available.

Source: Reuters

ABOUT THE AUTHOR

Muhammad Qasim


Qasim's deep love for technology and gaming drives him to not only stay up-to-date on the latest developments but also to share his informed perspectives with others through his writing. Whether through this or other endeavors, he is committed to sharing his expertise and making a meaningful contribution to the world of tech and gaming.
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