Russian Supreme Court Confirms Fine on Apple for Abusing Dominant Position in Application Market
The Russian Supreme Court has upheld a fine of 906 million rubles on American tech giant, Apple. The company was accused of abusing their dominant position in the iOS application distribution market by limiting the functionality of third-party parental control applications. The fine was imposed by the Federal Antimonopoly Service (FAS) after an investigation that was initiated in 2019 on the complaint of Kaspersky Laboratory.
The laboratory accused Apple of limiting the functionality of its application “Kaspersky Safe Kids” after updating the iOS 12 operating system. Apple allegedly prohibited the use of the API for control of access to applications and browsers and removed the application from the App Store without explanation. This action created an unequal playing field for competitors in the parental control market and provided an advantage to their own product, the “Screen Time” function.
Apple disagreed with the decision of the FAS and appealed to the Moscow Arbitration Court. However, the appeal was dismissed and the court confirmed the legality of the fine in May 2021. The subsequent appeal to the Supreme Court of Russia has also been rejected.
In addition to the fine, the FAS has instructed Apple to eliminate the violations and change its documentation to avoid discrimination against third-party developers. The company is also required to allow the distribution of parental control applications in the App Store without losing important functions.
This ruling underscores the importance of fair competition, and serves as a warning to other tech companies that may be tempted to misuse their dominant market positions.
Source: FAS