Asger Risom
Apple has been fined $518K by UK authorities for breaching Russian sanctions after making payments to a newly sanctioned entity in 2022, adding to its history of regulatory scrutiny.
Apple has been penalized by UK authorities over payments linked to a sanctioned Russian entity, adding to a growing list of regulatory challenges facing the tech giant.
The case centers on transactions made shortly after ownership of a media platform changed hands.
According to The Telegraph, Britain’s Office of Financial Sanctions Implementation (OFSI) fined Apple about $518,000 for breaching Russia-related sanctions. The penalty relates to two payments totaling roughly $844,000 made in mid-2022 to Russian streaming service Okko.
At the time, Okko had been transferred from state-owned Sberbank to a new entity that had just been placed under sanctions.
Payments Under Review
OFSI said Apple’s Ireland-based division processed payments on June 30 and July 28, 2022, after the new owner became sanctioned.
The regulator noted there was a limited window during which at least one payment might have been stopped.
It also revealed Apple had previously paid more than $1.6 million to Okko earlier in April 2022, before stricter liability rules came into force.
Compliance Gaps
Authorities pointed to weaknesses in Apple’s internal checks.
According to the penalty notice, the company relied on developer self-certification and third-party due diligence, but did not proactively verify ownership changes.
OFSI said this approach “very likely contributed to the breach payments occurring.”
The fine was reduced from an initial £600,000 after Apple voluntarily disclosed the issue and cooperated with investigators.
Familiar Scrutiny
The case adds to Apple’s history of regulatory pressure, particularly in Europe, where authorities have repeatedly targeted the company over competition and tax practices.
In recent years, Apple has faced multibillion-euro disputes with EU regulators over alleged tax advantages in Ireland, as well as fines and investigations related to App Store rules and antitrust concerns.
These cases have reinforced scrutiny of how the company manages compliance across different jurisdictions.
Company Response
Apple said the breach was unintentional and that it acted quickly once the issue was identified.
“We follow the laws in the countries where we operate and take sanctions compliance extremely seriously,” a spokesperson said.
“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.”
Rising Pressure
The development comes amid increasing pressure on Apple from Russian authorities.
According to RBC and Interfax, officials have moved to restrict Apple services, including limiting payment options and pushing for the return of certain apps to the App Store.
Regulators have also called on Apple to comply with local requirements, including offering users a choice of Russian search engines by default.
Sources: The Telegraph, OFSI, RBC, Interfax
