Russia fines Apple over $17 million for forcing app developers to use its payment system
The Russian Federal Antimonopoly Service (FAS) issued a fine of 1.2 billion rubles (about $17.4 million) to Apple because it abuses its dominant position. The agency claims that
Apple insists that developers in Russia must use its Apple Pay system. It considers this a serious offence. “Apple requires Russian iOS app developers to use the company’s
payment tool in their apps,” the official said in a statement. The company must pay the fine (1177988700 rubles) within two months, officials said. According to the FAS, App
Store rules prohibit developers of iOS apps from informing customers about the possibility of purchasing apps outside the store and using other payment methods. The company asked
developers to remove referential backlinks and change the app’s functionality. This way, it will not be able to direct signups to external sites. If the app does not keep to this
policy, Apple will not allow the app to be in its App Store. The U.S. company banned Russian developers from informing buyers of apps in the App Store about alternative payment
methods, according to the regulator. In July last year, a Moscow court fined Apple 2 million rubles (about $29,000) for refusing to localize Russian data. The FAS ruled that Apple
violated antitrust laws in the summer of 2022 for abusing its market dominance. The FAS claims that the fine will come in the form of a percentage of turnover. According to FAS
officials, the fine will range from 0.01 – 0.15% of the company’s annual revenue in the Russian Federation. FAS notes that the amount of the turnover penalty will be
distributed after the investigation. Made in India iPhones to account for 50% in 2027 At the moment, almost all the iPhones we have in the market are produced in China. However,
with the growing tension between the U.S. and China governments as well as the issues (COVID and others) issues in China, Apple has been looking for alternative production
countries. The company is trying to make its supply chain stronger. India, Vietnam and Brazil are the most promising regions to become Apple’s next manufacturing centers. The
Indian government has been pushing for Made In India products. There are reports that India will produce a lot of iPhones in the coming years. According to reports, over 50% of
iPhones that will ship worldwide will be produced in India by 2027. This is coming from the latest DigiTimes forecast regarding Apple’s iPhone production. The figure is more
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aggressive than JPMorgan’s earlier forecast that India would assemble 25 per cent of the world’s iPhones by 2025. DigiTimes analyst Luke Lin said: “Given the uncertainty of
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