
Russia’s antitrust agency, the Federal Antimonopoly Service (FAS), has written to Apple, asking the tech giant to clarify why Russian users of Apple devices do not have access to the full functionality of banking and payment services. The FAS has fined Apple approximately $26 million in the past two years for what it describes as Apple’s abuse of its dominant position in the mobile apps market and in-app payments.
Background on Apple’s Dispute with the FAS
The FAS has previously accused Apple of giving its own products a competitive advantage through the distribution of apps on its iOS operating system. Apple has disagreed with the FAS ruling, stating that it respectfully disagrees with the allegations. The FAS claims that most Russian banks have been removed from the App Store, and Apple restricts users from installing apps from sources other than the App Store, making it impossible for Russian banks and contactless services to function properly. The FAS believes that Apple’s actions may violate antimonopoly legislation.
Apple’s Response and Concessions in Europe
Apple has not yet responded to the FAS’s request for comment outside of U.S. business hours. However, it is worth noting that Apple recently made concessions in Europe to comply with the European Union’s Digital Markets Act (DMA). As part of these changes, Apple announced that developers would be allowed to distribute their apps directly to consumers, aiming to protect the dominance of its App Store on iPhones and other devices.
Sanctions Against Russian Banks Impact Apple’s App Store
As a result of Russia’s ongoing conflict with Ukraine, the United States, the UK, and the European Union have imposed sanctions on various entities in Russia, including major banks. These sanctions were initiated in February 2023 and have been expanded over time.
One significant consequence of these sanctions is that banks in Russia have been denied access to SWIFT, a messaging service that facilitates communication and asset transfers between financial institutions. Additionally, a broader ban on cross-border transactions has been implemented.
Due to these sanctions, U.S. companies like Apple are prohibited from directly collaborating with Russian banks. As a result, Apple has been compelled to remove bank apps from the App Store to ensure compliance with international laws and regulations.
Despite the ban, some banks have attempted to continue servicing customers through the App Store by creating Trojan horse apps that disguise their true nature, aiming to circumvent the App Store’s review process.
However, it is crucial to note that allowing these bank apps to exist in the App Store would not only violate sanctions but also pose significant challenges for Apple, which is already operating within the constraints of international regulations.