Russia slaps Google with 2 sextillion ruble fine – here's why
Background: Russia's Antitrust Battle with Google
Russia's antitrust watchdog, the Federal Antimonopoly Service (FAS), has been investigating Google since 2015 over allegations that the company abused its dominant position in the Russian market.
In 2019, the FAS found Google guilty of violating antitrust laws and ordered the company to pay a fine of 438 million rubles ($6.8 million).
Google appealed the decision, but the Russian Supreme Court upheld the fine in 2021.
The New Fine
The new fine of 2 sextillion rubles ($25 billion) is the largest antitrust fine ever imposed in Russia.
The FAS alleges that Google has continued to abuse its dominant position in the Russian market by:
- Preventing other search engines from competing with Google
- Bundling its services with Android, the most popular mobile operating system in Russia
- Using its data to favor its own services over those of competitors
The FAS also alleges that Google has failed to comply with the 2019 antitrust ruling.
Google's Response
Google has denied the FAS's allegations and said that it will appeal the fine.
The company said that it has always complied with Russian law and that it is committed to fair competition.
Implications for Google
The new fine could have a significant impact on Google's operations in Russia.
The company could be forced to pay the fine, which would be a major financial blow.
The FAS could also order Google to change its business practices in Russia, which could make it more difficult for the company to compete in the market.
Implications for the Russian Market
The new fine could also have a ripple effect on the Russian market.
It could make it more difficult for other companies to compete with Google, which could lead to higher prices for consumers.
It could also discourage foreign investment in Russia, which could hurt the country's economy.
Conclusion
The new fine against Google is a major development in the ongoing antitrust battle between the company and the Russian government.
The fine could have a significant impact on Google's operations in Russia and on the Russian market as a whole.
