How does this law aim to boost Russian IT firms against foreign competition?

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Russian Law Mandates Pre-Installation of Domestic Software on Smart Devices to Bolster Local IT Sector

Effective April 1, a new Russian law requires that smartphones, computers, and other smart devices sold within the country must come with Russian software pre-installed. This legislation is designed to foster competition for domestic IT firms against their international rivals and to reduce Russia's reliance on foreign technology and companies. The government aims to strengthen its control over the internet landscape through these measures.
Requirement for Pre-Installed Russian Software

The core of the legislation mandates that devices manufactured after April 1, including smartphones, tablets, smart TVs, laptops, and PCs, must feature Russian-developed applications. These applications will be presented alongside their foreign counterparts during the device setup process, allowing users to choose which software to utilize. Examples of pre-installation categories include internet browsers, search engines, mapping and navigation services, and applications for Russia's Mir payment system.
Support for Russian IT Companies

Beyond the pre-installation mandate, Russia is considering additional measures to support its domestic IT industry. These proposals include requiring foreign technology companies to establish physical offices within Russia and providing tax incentives specifically for Russian IT firms. Deputy Prime Minister Dmitry Chernyshenko has highlighted the significant potential of the Russian IT sector to drive national modernization, indicating further support packages are under discussion.
Impact on Foreign Tech Giants

The law presents a notable challenge for dominant foreign players in the Russian market, such as Apple, Samsung, and Huawei. Apple, in particular, initially hesitated but ultimately agreed to provide users with an option to install Russian software during the initial setup of iPhones, subject to its own privacy, security, and content standards. Russian tech giants like Yandex, a leader in search, and Mail.Ru are anticipated to be the primary beneficiaries of this legislative push.

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How does this law aim to boost Russian IT firms against foreign competition?

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