Google fined $34 million in Russia for violating competition rules

Russia’s competition watchdog on Tuesday fined Alphabet’s Google RUB 2 billion (about Rs 260 crore) for abusing its dominant position in the video hosting market, the regulator said in a statement. The decision is the latest multimillion-dollar fine as part of Moscow’s increasingly vocal campaign against foreign tech companies. The Federal Antimonopoly Service (FAS) said the company “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.

The FAS said that Google would have to pay the fine within two months of its implementation.

Russia has imposed several fines on the Russian subsidiary of Google in recent months. Last week a court ordered him to pay 21.1 billion rupees (about Rs 2,800 crore) in what prosecutors said repeatedly refused to remove material such as “fake news” about Russia’s invasion of Ukraine. it was done.

As Moscow begins its “special military operation” in Ukraine, it has intensified attacks on Western tech companies at home to gain more control over the online space, including support for domestic players to oust their Western rivals.

Gazprom Media – a media group affiliated with state-controlled gas giant Gazprom – is heavily promoting RuTube, its Russian alternative. youtubeWhich has seen a sharp increase in traffic since February.

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

Google stopped selling online ads in Russia in early March but has provided some free services. Its Russian subsidiary officially filed for bankruptcy after authorities confiscated its bank account, making it impossible to pay employees and vendors.

© Thomson Reuters 2022