Apple is fighting Russian regulator’s demands on alternative app payments

Alex Castro illustrated thechorus image.

Russia's Federal Antimonopoly Service (FAS) wants developers to be able to tell customers about alternatives to Apple's in-app payment option, but Apple is challenging the action. Russia Today reports that Apple wants a judicial review of the warning that was given to it by the regulators. FAS announced at the end of October that it was opening an antitrust case against Apple.

The policies on in-app payments are contentious. Apple requires developers to use its own in-app payment system, which allows it to collect up to a lucrative 30 percent commission on any purchases. Apple restricts the ability of developers to tell customers when they accept alternative payment methods other than ApplePay.

FAS is accusing Apple of using its dominant position.

FAS is objecting to this policy. In an announcement at the end of October, the Regulator said that Apple was abusing its dominant position on the market for the distribution of apps through its App Store by not allowing developers to tell in-app users about the possibility of paying outside of the App Store. A request for comment was not immediately responded to by Apple.

In response to a class-action lawsuit, Apple said it was clarifying its policies about developers telling customers about alternative payment methods. Developers could use emails to share information with customers about alternative payment methods. It stopped short of allowing developers to do this on their own.

Apple's App Store policies are facing opposition. In the US, the judge in Apple's legal battle with Epic Games gave the company a deadline of December 9th to comply with his order to allow iOS apps to direct users to alternative payment options. Lawmakers in South Korea passed a bill in August banning platform holders from limiting developers to using their first-party payment systems. The practice has been charged with antitrust by the European Commission.

Apple was fined $12 million by Russia's antitrust authority for unfairly cracking down on third-party parental control apps. FAS is using a policy that is far more controversial.