Apple May Be Forced To Reduce In-App Payments Cut In Russia

Apple has been in hot water in recent months, and it seems that new challenges are on the way. In August, Russia decided that the way in which Apple tackles third-party parental control apps makes it guilty of anti-competitive practices.

A new bill that has been submitted to the lower Russian Parliament seeks to force the company to allow the use of third-party app storefronts on its devices and to reduce the 30% cut from in-app purchases to 20%.

New rules

Besides a smaller cut, Apple and other companies would also have to provide a third of the revenue earned from commissions for on a special fund for training IT experts. While a reduction of the cut may not affect the Cupertino giant in a significant manner, the other proposal could set an interesting precedent.

If Apple is forced to offer users the option to install and use third-party app storefronts, it will lose the interest of many developers who might prefer to publish their app independently and collect more revenue from in-app purchases instead of paying Apple the required cut.

Antitrust concerns

If the bill is approved, the ramifications could be notable as Apple is being investigated for antitrust concerns across several countries. Apple has argued in most cases that the 30% cut is an industry staple and that a significant amount of the revenue is spent on the improvement of the App Store.

Apple would contest any decision that would force it to drop the current way in which the iOS ecosystem is organized. The company has already appealed the decision mentioned at the start of the article, but the bill is a separate initiative, and despite Apple’s impressive influence, it is possible that it will pass.

With pressure from shareholders to increase revenue from services Apple might face some difficult times in the future.

Willie Hahn, senior editor at The Trending Times, writes about the intersection between money and politics with a focus on lobbying and tech articles. Willie previously at the Android Authority and Vice. Willie can be reached by email.

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