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Apple Found Guilty of Illegal iPhone Price-Fixing in Russia

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Don Reisinger
Don Reisinger
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By
Don Reisinger
Don Reisinger
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March 15, 2017, 11:48 AM ET

Apple has run into some trouble in Russia.

The country’s antitrust watchdog, the Federal Antimonopoly Service (FAS), found Apple guilty on Tuesday of iPhone price-fixing in the country. In a statement, FAS said that Apple’s Russian subsidiary forced 16 retailers in the country to fix their pricing on iPhone 5 and iPhone 6 models, according to the Financial Times, which earlier reported on the ruling. Apple would even contact the retailers if it discovered “inappropriate” pricing at the stores and force them to change it, according to the report.

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The Russian investigation into Apple’s (AAPL) iPhone pricing was announced in August. At the time, Apple said that retailers are able to set their own prices on its devices and denied that it engaged in price-fixing activities at any point in its relationship with those companies.

This isn’t Apple’s first price-fixing problem. In 2015, Apple was found guilty of fixing prices on eBooks as part of a broader agreement with major book publishers. While the company has claimed its innocence, it ultimately settled the case for $450 million in 2016, after the U.S. Supreme Court declined to hear its arguments.

Apple has previously said its innocent in the Russian case. In a statement to the Financial Times, a spokesperson said that its Russian subsidiary “worked closely” with FAS during its investigation, adding that that it’s “deeply committed to making sure our resellers are able to compete fairly in the markets where we do business.”

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But Apple’s Russian troubles aren’t necessarily behind the company. Apple will have three months to respond to the charges, according to the investigators. And within the next few months, Apple’s subsidiary could face a fine of up to 15% of its Russian sales.

Apple did not immediately respond to a Fortune request for comment on the Russian troubles.

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