Google fined $2.5 Decillion by Russian Court-Know the issue

Google: Record-Breaking Fine for Non-Compliance

A Russian court have reportedly ordered an unprecedented fine of staggering $2.5 decillion, after the tech giant did not restore YouTube accounts of certain pro-Kremlin and state-controlled media businesses. According to RBC News, Google has been accruing daily fines of 100,000 rubles since 2020, after losing a lawsuit filed by pro-government media channels Tsargrad and RIA FAN over blocked YouTube channels. Penalties doubling each week have also led to the current astronomical fine reported by the Moscow Times.

The roots of this legal dispute go back to year 2020, with Google’s YouTube service blocking the channels of Russian media entities, citing sanctions imposed by U.S. on owners of channels since 2014. Despite Russian court’s orders to restore these channels, Google has not complied, and channels are still inactive. In response to non-adherence, the Russian court imposed a system of escalating fines, with daily charges of 100,000 rubles that double weekly if the channels remain inaccessible. The court’s October 28 hearing emphasized the unusual size of the fine, with the judge reportedly stating, “a case in which there are many, many zeros.”

Amongst the affected entities are prominent Russian state and media channels such as Zvezda, Channel One, Russia 24, Parliamentary Television, NTV, and others. IP Simonyan M.S., which represents journalist Margarita Simonyan’s YouTube channel, is also among the third-party plaintiffs. The court reemphasized that if Google fails to comply within nine months of the ruling, a fine will accrue continuously, doubling each week until it meets the requirements.

By September, the total fines had already reached an estimated 13 decillion rubles (one followed by 33 zeros), illustrating the exponential nature of the penalties.

Historical Context: Previous Cases of Heavy Fines

Russia has fined Western tech companies in past also over content regulation. A Moscow court in 2021, imposed a $98 million fine on Google for failing to delete content that Russia deemed illegal. Notably, this penalty was one of the first in Russia to be based on annual turnover of a tech company. Signaling towards growing insistence on tighter control over digital platforms by the Kremlin. Facebook’s parent company Meta also received a fine of 2 billion rubles shortly after.

This reflects on Russia’s broader strategy of digital sovereignty, initiated by President Vladimir Putin, to give government more power to regulate what content is accessible within Russia. Amid claims of unmoderated content because of external interference, Russia has been introducing measures like mandatory pre-installed Russian apps on all new smart devices, tightening internet and social media controls.

In May 2021, Russia’s media watchdog threatened to slow down Google’s speed if it did not remove thousands of flagged posts, citing concerns over drug promotion, violence, and extremism. Additionally, LinkedIn, Dailymotion, and several VPN services were blocked for failing to cooperate with local authorities.

Russia’s ongoing efforts to control the information available within its borders can be clearly understood by its strong stance against these companies, while arguments are going on, on freedom of expression and suffocating online dissent. The latest case with Google exemplifies the country’s broader campaign to regulate the digital landscape under its jurisdiction, posing significant compliance challenges for foreign tech giants.

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