RUSSIA SUES APPLE: They want the App Store to open

Photo Credits : UNSPLASH

The problem arose because the payment methods in iOS applications are controversial, as developers are asked not to include other companies’ systems.

Photo Credits: Getty Images

Apple clashed with regulators in Russia a few months ago, as the App Store works so that the company makes more profit, to the detriment of small companies.

Namely, Russian laws that prevent the dominance of large companies require iOS developers to inform users about alternative payment methods within the application.

The conditions were supposed to be met by the end of September, but Apple instead asked for a revision of the request.

Since Apple did not fulfill what was required, the Russian Federal Office against Monopolies (FAS) has launched a new process that should force the company to operate according to the laws of this country.

The problem arose because the payment methods in iOS applications are controversial, as developers are asked not to include other companies’ systems. Thanks to that, Apple in many cases gets 30% of every purchase.

And that’s not all – the company not only prohibits other methods of payment but also prevents developers from informing users that they accept alternative methods in other online stores.

This is exactly the practice that bothers Russia because Apple is abusing its dominant position in the market in order to suppress competition. So the App Store gets stronger, and the company makes more profit, while other, smaller players stay on the sidelines.

Apple issued a statement in August stating that developers have the right to inform customers about alternative payment methods, but only through emails and other communication channels – not through applications in the Apple online store.

Because of these problems, Apple is in conflict with regulators in countries around the world. In the United States, it is fighting the battle with Epic Games, which is also looking for alternative payment methods in its applications. South Korea is also demanding that other payment methods be included in applications in Google and Apple stores, and the European Commission wants something similar.

Apple has already paid a fine of 12 million dollars in Russia because it suppressed competing applications for parental control. It seems that there are more and more people who want the monopoly to end, and that smaller companies get their chance in the market ruled by giants.

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