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Russia fines Google $34 million for breaching competition rules

Published 07/26/2022, 07:16 AM
Updated 07/26/2022, 09:35 AM
© Reuters. FILE PHOTO: The Google name is displayed outside the company's office in London, Britain November 1, 2018.  REUTERS/Toby Melville

LONDON (Reuters) -Russia's competition watchdog fined Alphabet (NASDAQ:GOOGL)'s Google 2 billion roubles ($34.2 million) on Tuesday for abusing its dominant position in the video hosting market, the regulator said in a statement.

The decision is the latest multi-million dollar fine as part of Moscow's increasingly assertive campaign against foreign tech companies.

The Federal Antimonopoly Service (FAS) said the company had "abused its dominant position in the YouTube video hosting services market", without providing additional details.

"We will study the text of the official decision to define our next steps," Google said in a statement to Reuters.

Google must pay the fine within two months of it entering into force, the FAS said.

Russia has slapped Google's Russian subsidiary with numerous fines in recent months. Last week a court ordered it to pay 21.1 billion roubles ($358.7 million) over what prosecutors said were repeated refusals to remove content Russia deems illegal, such as "fake news" about Russia's invasion of Ukraine.

Since Moscow launched what it calls its "special military operation" in Ukraine, it has also accelerated attacks on Western tech companies at home in a push to exert more control over the online space, including through supporting domestic players to oust their Western rivals.

Gazprom (MCX:GAZP) Media - a media conglomerate linked to state-controlled gas giant Gazprom - has been heavily promoting RuTube, its Russian alternative to YouTube, which has seen a sharp uptick in traffic since February.

YouTube, which has blocked Russian state-funded media globally, is under heavy pressure from Russia's communications regulator and politicians.

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Google stopped selling online advertising in Russia in early March but has kept some free services available. Its Russian subsidiary officially filed for bankruptcy after authorities seized its bank account, making it impossible to pay staff and vendors.

Latest comments

omg 34 billon make crash Google shares. lol un autre fake de putin
haha...simpel dont pay a cent to Russia they are a roque state. Its like an african dictator country sending google a fine for being there.....simpel lawyer job
Russia? Nobody should care about country which breaking all international rules!
  while now russia bomb Ukrainia and do in Afganistan and doing in Mali , and Siria , but if want ask a S Korean if prefered be in  N Korea, or a Viet if prefer be in China rules , and Yugoslavia if prefer being in USSR Or Nato as they asked,   check this new on yandex
Just the same in US
you do business in Russia and this is what you get! lesson learned yet?
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