Sanctioned Firms Seize Opportunity in Apple and Google App Stores

Recent investigations reveal that numerous U.S.-sanctioned organizations are actively offering apps in major app stores, raising significant concerns. The Tech Transparency Project (TTP) reported that the Apple App Store hosts 52 apps linked to various Russian, Chinese, and other sanctioned entities. This finding highlights potential compliance failures by major tech companies regarding U.S. sanctions.

App Store Violations and Sanctioned Entities

The Tech Transparency Project identified developers and companies behind these apps that align with U.S. Treasury Department sanctions. Notably, apps connected to banks assisting Moscow’s invasion of Ukraine were found, in addition to associations with Chinese paramilitary groups. The Google Play Store also contained 18 apps linked to sanctioned firms, although this number is significantly lower than that of Apple’s store.

Investigative Findings

• Apple’s App Store: 52 sanctioned apps identified.
• Google Play Store: 18 sanctioned apps identified.
• Apps connected to Russian banks, including Ural FD, and the Vietnam-Russia Joint Venture Bank.
• Chinese paramilitary group-linked apps available on Apple’s China App Store.

Implications for Apple and Google

Apple and Google’s hosting of these applications suggests potential violations of U.S. sanctions. Both companies profit by charging development fees, thus engaging in financial transactions with these sanctioned entities. This situation invites scrutiny regarding the robustness of their app vetting processes and compliance with national security regulations.

Previous Sanctions Cases

Apple has faced scrutiny in the past for violations related to sanctions. For instance, in 2019, the company was fined for allowing apps related to a sanctioned Slovenian drug trafficker. This settlement prompted Apple to improve its sanctions screening procedures, yet the recent findings from TTP indicate ongoing deficiencies.

Methodology of the Investigation

TTP utilized a combination of automated and manual searches to identify sanctioned apps across both platforms. The team sourced information from the U.S. Treasury Department’s list of Specially Designated Nationals (SDNs) to conduct their analysis, ensuring a thorough examination of potential links to sanctioned organizations.

Key Statistics and Findings

• Apps identified linked to over 29 sanctioned Russian companies.
• Apple retrieved 18 apps from its store after TTP shared its findings.
• Subsequent analyses revealed ongoing availability of apps despite existing sanctions.

Conclusion

The presence of sanctioned apps within the Apple App Store and Google Play raises vital questions about how these companies enforce compliance. Continued monitoring and stricter measures are necessary to ensure these platforms do not facilitate economic activities linked to organizations that undermine U.S. national security. The situation calls for rigorous enforcement of sanctions and transparent app vetting processes to uphold regulatory standards.