Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Russia to go after Google this month with fine of up to 20% of annual turnover

Published 10/19/2021, 05:54 AM
Updated 10/19/2021, 06:46 AM
© Reuters. FILE PHOTO: The logo of Russia's state communications regulator, Roskomnadzor, is reflected in a laptop screen showing Google start page, in this picture illustration taken May 27, 2021. REUTERS/Maxim Shemetov/Illustration/File Photo

By Gleb Stolyarov

MOSCOW (Reuters) - Russia said on Tuesday it would this month seek to fine U.S. tech giant Google a percentage of its annual Russian turnover for repeatedly failing to delete content deemed illegal, Moscow's strongest effort yet to rein in foreign tech firms.

Communications regulator Roskomnadzor said Google had failed to pay 32.5 million roubles ($458,100) in penalties levied so far this year and that it would now seek a fine of 5-20% of Google's Russian turnover, which could reach as much as $240 million, a significant increase.

Google did not immediately respond to a request for comment.

Russia has ramped up pressure on foreign tech companies as it seeks to assert greater control over the internet in the country, slowing down the speed of Twitter (NYSE:TWTR) since March and routinely fining others for content violations.

Opposition activists have accused Alphabet (NASDAQ:GOOGL)'s Google and Apple (NASDAQ:AAPL) of caving to Kremlin pressure after they removed an anti-government tactical voting app from their stores.

Roskomnadzor earlier in October said it would ask a court to impose a turnover fine on social media firm Facebook (NASDAQ:FB), citing legislation signed by President Vladimir Putin in December 2020.

"A similar case will be put together in October against Google," Roskomnadzor said in emailed comments to Reuters on Tuesday, noting that the company also owned video-hosting site YouTube.

The SPARK business database showed that Google's turnover in Russia in 2020 was 85.5 billion roubles. A 5-20% fine would amount to between 4.3 and 17.1 billion roubles.

© Reuters. FILE PHOTO: The logo of Russia's state communications regulator, Roskomnadzor, is reflected in a laptop screen showing Google start page, in this picture illustration taken May 27, 2021. REUTERS/Maxim Shemetov/Illustration/File Photo

Google is currently fighting a court ruling demanding it unblock the YouTube account of a sanctioned Russian businessman or face a compounding fine on its overall turnover that would double every week and force Google out of business within months if paid.

($1 = 70.9450 roubles)

(Additional reporting and writing by Alexander Marrow; Editing by Kirsten Donovan)

Latest comments

When other countries do more to contain big tech than the US? You know our politicians hace been bought and paid for! Sad days in the country
hii
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.