As a powerhouse, Russia has its software development sector strengthening.
But if competing against those from the West, especially from the U.S., Russian-grown software companies are incomparable.
Kremlin knows this very well, and this is why it has an initiative, which requires all smart devices — including phones, computers, and TVs — in the country to have Russian software preinstalled.
The initiative was first introduced by the Federal Law No. 425-FZ of 2 December 2019 on Amendments to Article 4 of the Law on Consumers Protection ('the Law').
It was initially planned to enter into force on 1 July 2020, but the plan was delayed a few times, most likely due to the 'COVID-19 coronavirus pandemic and some related developments.
But this time, Russia is finally ready.
According to reports, the Russian government viewed the Law as a way to help Russian software companies compete with international ones.
Russia’s Digital Ministry said that the law applies to all smart devices produced after April 1, and those that are sold in Russia.
“Russian apps from the preinstallation list should be placed next to other programmes of the same class: both from the same category next to each other on the same screen of the device.”
The apps on the list include internet browsers, search engines, maps and navigations providers, and apps for using the payment system Mir, Russia’s version of Visa and Mastercard, according to a government decree published in November 2020.
Russia’s IT industry has the opportunity and potential to become a “locomotive in the process of modernizing the country,” Deputy Prime Minister Dmitry Chernyshenko said.
"When we buy complex electronic devices, they already have individual applications, mostly Western ones, preinstalled on them," explained one of the law's initiator, Oleg Nikolayev.
"Naturally, when a person sees them [...] they might think that there are no domestic alternatives available. And if, alongside preinstalled applications, we will also offer the Russian ones to users, then they will have a right to choose."
In what some locals have called a "law against Apple," Moscow wants to use it to not only reduce dependence on foreign companies and countries, but to also crack down on U.S. tech companies conducting business in Russia.
Beyond that, the government also has a number of additional proposals are in the works, ranging from compelling foreign firms to open offices in Russia, to tax breaks for Russian IT companies.
Russia’s smartphone market is dominated by foreign companies like Apple, Samsung and Huawei. And the software industry is conquered by the likes of Google, Facebook and others.
This law here, essentially aims at promoting Russian technology and making it easier for people in the country to use the gadgets they buy. And that is by requiring smart devices to have Russian "alternatives" to be installed.
The law should benefit IT giants, like Yandex, which dominates search, as well as Mail.ru, VK, ICQ, and more.
It should be noted that Apple has agreed to allow people to install Russian software as they set up their phones for the first time, but requires all apps to be checked to make sure they meet Apple's own privacy and security policies. What this means, users would be able to choose Russian apps over foreign ones when setting up their devices.
Apple introduces this initiative through a new setup process.
Samsung has also begun to comply with the requirements of the Russian government, and to do that, the South Korean company has released a major firmware update to a number of its smartphones in Russia, weighing at over 1.3GB in size.
While the law should strengthen Russia's IT companies, the law has also faced numerous criticisms from manufacturers and distributors in Russia..
First, the Association of Trading Companies and Manufacturers of Electrical Household and Computer Equipment (RATEK) said it is not possible to install Russian-made software on some smart devices.
Second, the law could make international companies behind the smart devices to leave the Russian market.
Those who refuse to have their products shipped with preinstalled Russian software, can face a fine: for individual entrepreneurs it will be from 100,000 to 500,000 rubles, for legal entities, between 500,000 thousand to 1 million rubles.
Third, others have raised their concerns, saying that the law can also be used to spy on users, and to also strengthen Russia's reliance on its own government-controlled "sovereign internet."
This sovereign internet law which has passed weeks earlier, in theory, is giving officials in Russia a wide-range of powers to restrict certain traffic on the Russian internet.
So while Kremlin suggests that the law can improve cyber security, critics fear that the government can use the law to create an internet firewall similar to that in China.
Read: Russia Creating Its Own Firewall: An Attempt To Connect Without The Regular Internet