Apple complies to Russia's demands, opens office in Moscow to avoid penalty & ban

Apple on Saturday opened a representative office in Russia, adhering to Kremlin’s communications regulator Roskomnadzor’s rules that required the foreign firms to set up operations on Russian soil in order to promote the country’s own domestic tech sector over Silicon Valley. Roskomnadzor had earlier warned that the tech firms that violate the legislation risk facing advertising ban, data collection, and money transfer restrictions, or will be completely blacklisted. Russia had asked scores of IT and tech firms to localise their operations citing the new law.

Among the 13 foreign technology companies that were immediately required to open local offices were Apple (AAPL.O), Alphabet's Google (GOOGL.O), Facebook (FB.O), Twitter (TWTR.N), TikTok and messaging app Telegram, and many others. Russia had dispatched the technical requirements the foreign companies were expected to adhere to that included establishing a Russian-language feedback form to their website. The companies that were asked to open offices mostly served more than 500,000 consumers. 

Russia asks foreign firms to 'comply with the law' or face consequences

Roskomnadzor had shared a list of targeted firms that were asked to comply with the law that was signed by Russian leader Vladimir Putin. The law mandated foreign businesses to establish physical offices in Russia, a move that many had decried as an attempt to stifle corporate freedom. Russia had threatened penalties for non-compliance or even shutting down the business permanently. “A foreign entity, carrying out activities on the internet in Russia, is obliged to create a branch, open an office or establish a Russian legal entity,” the new law shared on the government website read. About 20 foreign companies — mostly US-based, including retailers and e-commerce firms — were likely to be affected, the Russian state media had reported. 

On Friday this week, music streaming service Spotify announced that it opened a representative office in Russia, announced Federal Service for Supervision of Communications, Information Technology and Mass Media. Meanwhile, Google, Viber, and Likee issued a response stating that they would comply with the demands in the near future. Other US-based companies such as Facebook-owner Meta, TikTok, and Telegram are yet to issue an official response. Twitter, Facebook, Google, and Telegram have also been involved in tough legal battles with the Russian government as they have been summoned by the court in Russia to defend the charges that say these firms failed to remove the illegal content quickly enough on their platform.