Google has been fined an astronomical sum, exponentially greater than global GDP, for refusing to restore accounts of pro-Kremlin and state-run media outlets.
Russia is demanding or €18 decillion ($21.4 decillion) from the US tech giant, the result of the accumulation of fines over four years, currently doubling every week under Russian law.
Initially, Google was fined 100,000 Rubles (€929) in 2020 after two Russian media groups won lawsuits against restrictions on their YouTube channels.
After the Russian invasion of Ukraine, Google further banned other Russian outlets in 2022 over due to their support of the war, adding to the fines.
Google, which earned $306 billion (€280 billion) in revenue last year, cancelled advertising platform AdSense accounts in Russia in August and in October banned the establishment of new accounts for Russian customers.
As part of greater restrictions against Russia, Google users there have also not been offered online advertisements since March 2022.
Accusing YouTube of arbitrarily blocking the accounts and channels of Russian broadcasters, the Russian Federal Antimonopoly Service (FAS) determined in February 2022 that the platform’s owner Google had violated the provision of the statute “On Protection of Competition” by abusing its dominating position, prompting the fines.
As a result, Google’s Russian business was forced to file for bankruptcy after authorities there seized its bank accounts. YouTube is still generally available in Russia.
In its latest report for the quarter ending June 30 and published a few days ago, Google referred to “ongoing legal matters relating to Russia.”
“For example, civil judgements that include compounding penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned parties. We do not believe these ongoing legal matters will have a material adverse effect,” it said.
Google owner Alphabet is currently valued at $2.16 trillion (€1.98 trillion) on the stock exchange.
Roman Yankovsky, from the HSE Institute of Education, told Russian State media agency TASS that Google “clearly will not pay this penalty, and the Russian Federation will not be able to recover this money from the company”.
The world’s global GDP, according to estimates by the IMF, stands at around $110 trillion (€100 trillion).
On October 31, the Kremlin called the fine for Google “symbolic”.
“Although it is a concretely formulated sum, I cannot even pronounce this number,” Kremlin spokesman Dmitry Peskov told reporters at a daily briefing. “Rather it is filled with symbolism.”
“In fact, this should be a reason for Google’s management to pay attention to this and fix the situation. This is the best that the company can do,” he added.
The European Court of Justice has ordered both Apple and Google to hand over billions of euros in fines and unpaid tax revenue in two separate rulings. https://t.co/8jueKoJc10
— Brussels Signal (@brusselssignal) September 11, 2024
