A Russian legislator introduced a draft bill on Tuesday that would cap Apple's app commissions at 20% and could force the company to allow third-party app stores on its devices.
The draft legislation, submitted on Tuesday by Russian State Duma member Fedor Tumosov, would impact mobile app marketplaces like the Google Play Store and Apple's App Store. The latter platform has been accused of anticompetitive behavior by Russia's anti-monopoly authorities.
If adopted, the legislation would cap a company's cut of app sales and in-app purchases to 20%, Reuters reported. It would "oblige" device makers to allow the installation of third-party app stores on mobile devices, Tumosov wrote on social media.
Additionally, the bill would require companies that charge fees on app sales to pay a third of those commissions to a special internet technology training fund every quarter.
Apple currently charges a 15% to 30% commission on sales of digital products in its app store, in-line with other companies like Google. That cut has received criticism from both developers and antitrust regulators, one of whom likened the fee to "highway robbery."
"In recent weeks, the conflict between developers and owners of the so-called "marketplaces", that is, application stores, has only grown. Apple's conflict with Epic Games, Facebook's attempt to inform users about Apple's imputed tax - all of this led me to believe that the problem could be resolved through legislation," he said.
Tumosov also waved away concerns that the move would compel Apple to leave the Russian market, claiming that the "trend is worldwide, and Russia should not lag behind."
Some authorities in Russia are voicing their opposition to the bill, saying that it may create a "dangerous precedent" if the state imposes such regulations, according to Russia-based business publication Kommersant.
The legislation comes in the midst of global antitrust scrutiny of Apple and other tech giants. The CEOs of major tech companies, including Apple, testified in July before a U.S. House Judiciary Committee as part of a broader probe examining the power of U.S. technology companies.
Apple is also in the middle of an ongoing legal feud with Epic Games over the implementation of a payment system that bypassed Apple's App Store commissions.
33 Comments
The Russians are really taking this ‘he who control by options, controls the outcome’ to heart aren’t they?
Guess someone is waiting for a big bribe from big tech.
Particularly on the 3rd party app store, screw the mass murder.
Apple could cap to a 20% commission, but add other fees. Apple’s costs don’t drop just because political meddlers tell them to drop.
Let me know when their dictator for life agrees to limit his pilfering of their resources to just 30%. Putin is considered to be the richest unlisted billionaire on the planet.
“I estimate that he has accumulated $200 billion of ill-gotten gains from these types of operations over his 17 years in power”
https://www.townandcountrymag.com/society/money-and-power/a14480615/vladimir-putin-net-worth/
Compare to the meager net worth he claims:
https://qz.com/1594989/vladimir-putins-financial-disclosure-claims-little-wealth/
“He takes what he wants,” American political scientist Karen Dawisha told the International Consortium of Investigative Journalists. “When you are the president of Russia you don’t need a written contract. You are the law.”
Russia’s per capita income was just under $25,000 in 2017, the most recent data available, according to the World Bank.