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UK Fines Apple $518K Over Payments to Sanctioned Russian Streaming Service
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Apple has been fined about $518,000 after UK authorities found the company had violated sanctions related to Russia, according to The Telegraph on March 30.
The penalty stems from two payments totaling around $844,370 made in June and July 2022 to Okko, a Russian streaming service, the outlet reported, citing Britain’s Office of Financial Sanctions Implementation (OFSI).
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At the time, Okko had been transferred from Sberbank—a Russian state-controlled bank already under sanctions—to a new owner, JSC New Opportunities, which was itself sanctioned in June 2022.
Despite the sanctions, Apple Distribution Limited, the company’s Ireland-based international arm, continued to process payments to Okko on June 30 and July 28, 2022. OFSI noted there had been a “narrow window in which the [first] payment could potentially have been cancelled” once the new owner’s sanctioned status took effect.
The watchdog also revealed that Apple had made more than $1.6 million in payments to Okko in April 2022, when the service was still controlled by Sberbank. However, those transactions occurred before stricter liability rules for sanctions violations were introduced.
According to the UK government’s penalty notice, Apple relied on “self-certification” from app developers to assess ownership risks, alongside third-party due diligence. OFSI said the company’s failure to strengthen its internal checks at the time “by affirmatively requesting ownership information from Russian-paid app developers very likely contributed to the breach payments occurring.”
The regulator reduced the fine from an initial £600,000 after Apple voluntarily disclosed the issue and cooperated with authorities during the investigation.
The notice also stated that Apple was unaware Okko had become sanctioned and that the breach was not intentional.
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“We follow the laws in the countries where we operate and take sanctions compliance extremely seriously. After identifying two payments to a developer that days earlier had become affiliated with a sanctioned entity, we promptly and proactively reported our findings to the UK Government,” an Apple spokesperson said.
“We are constantly working to enhance our already robust compliance protocols, which are consistent with industry standards.”
The move comes as pressure on Apple from Russian authorities continues to intensify, reflecting growing tensions between the company and Moscow.
Russia’s Ministry of Digital Development has ordered mobile operators to disable the option of topping up Apple ID accounts through mobile balances starting April 1. The instruction was reportedly delivered during a March 28 meeting with Digital Development Minister Maksut Shadayev and applies to major providers, including MTS, MegaFon, T2 Mobile, and VimpelCom (Beeline).
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One source, cited by RBC, indicated that the measure is designed to limit access to VPN services, which are widelyused to bypass state internet restrictions
A government source cited by Interfax added that the step is also intended to push Apple to reinstate Russian applications in the App Store. Officials believe that “temporary restrictions from operators may encourage” Apple to comply, as “lost revenue would otherwise be too significant.”
Authorities have further criticized Apple for not complying with requests from communications regulator Roskomnadzor to remove VPN services from the App Store. According to officials, these services account for more than 80% of all purchases on the platform.
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The pressure also extends to Apple’s compliance with Russian regulatory requirements.
Russia’s Ministry of Digital Development has backed the Federal Antimonopoly Service’s (FAS) demand that Apple introduce a feature allowing iOS users to select Russian search engines as their default, according to Digital Development Minister Maksut Shadayev.
“The Ministry supports FAS’s position on Apple’s unconditional compliance with the ‘choice window’ requirement [for search engines]. And we believe that if Apple fails to comply, tough measures should be introduced—because Google has complied,” Shadayev said.
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