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Google Faces Fine of 20% of its Revenue in Russian

Russia said on Tuesday it would fine U.S. tech giant Google a percentage of its annual Russian revenue for repeatedly failing to remove content deemed illegal.

This is Moscow’s biggest effort to curb foreign tech companies.

Communications regulator Roskomnadzor said Google has not paid 32.5 million rubles ($ 458,100) in penalties imposed so far this year and will now seek a fine of between five and 20 percent of Google’s Russian turnover.

Revenue could reach up to $ 240 million, a significant increase.

Google did not immediately respond to a request for comment.

Russia has stepped up pressure on foreign tech companies as it seeks to assert greater control over the internet in the country.

The action has slowed Twitter’s speed since March and regularly fined others for content violation.

Opposition activists have accused Alphabet’s Google and Apple of yielding to pressure from the Kremlin after removing an anti-government tactical voting app from their stores.

Roskomnadzor, earlier in October, said he would ask a court to impose a turnover fine on social media company Facebook, citing legislation signed by President Vladimir Putin in December 2020.

“A similar case will be brought up against Google in October,” Roskomnadzor said in comments emailed to Reuters on Tuesday, noting that the company also owned the YouTube video hosting site.

The SPARK business database showed that Google’s turnover in Russia in 2020 was 85.5 billion rubles.

A fine of 5-20% would amount to between 4.3 and 17.1 billion rubles.

Google is currently fighting a court ruling asking it to unblock the YouTube account of a Russian businessman or facing a cumulative fine on its overall turnover that would double every week and force Google to close its doors in a few months if he was paid.

Reuters / NAN

 

 

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