A Russian court has fined Google a staggering 2 undecillion rubles (approximately $2.5 decillion) in fines due to its refusal to restore the accounts of several pro-Kremlin and state-run media outlets, according to a report by the Russian TV channel RBC news.
This figure represents a number followed by 36 zeros and sets a new record for penalties imposed.
A total of 17 Russian television channels, including state-affiliated outlets like Channel One and military broadcaster Zvezda, have filed legal claims against Google. The legal battles date back to 2020, when YouTube, owned by Google, began blocking Russian state media channels over their support for the full-scale invasion of Ukraine.
The news cited anonymous sources familiar with the situation and was later picked up by The Moscow Times, quickly making headlines all over the world. Here's a closer look at the fine and the events that led to this penalty against Google in Russia.
Why did YouTube block Russian channels?
The origins of the lawsuits can be traced back to YouTube’s blocking of the Tsargrad TV channel and RIA FAN, citing violations of sanctions legislation and trade rules.
This led to Tsargrad filing a lawsuit with the Moscow Arbitration Court, which resulted in a court order requiring Google to restore access to the blocked accounts under threat of escalating fines for non-compliance.
The situation intensified following the invasion of Ukraine in February 2022, when YouTube blocked multiple state channels, including Sputnik and RT.
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Russia accuses Google of competition law violations
In response, the Russian Federal Antimonopoly Service (FAS) found Google in violation of competition laws, leading to a fine initially set at 2 billion rubles, which later increased to 4 billion rubles due to continued non-payment.
The court stipulated that if Google failed to comply with the order to restore access to the blocked accounts within nine months, it would incur a penalty of 100,000 rubles for each day of non-compliance, with the amount doubling every week. As of September, the total fine reportedly approached nearly 13 decillion rubles (one followed by 33 zeros).
Why has Russia fined Google $2.5 decillion?
In the latest court hearing on Monday, during the hearing, a judge reportedly said that they were considering “a case in which there are many, many zeros.” Following this, Russian media reports said that the fine against the global tech giant had been upped to a whooping 2 undecillion rubles, which is roughly $2.5 decillion.
How has Google responded to Russia?
Google and its parent company Alphabet, have not made any public response to the ongoing legal battles in Russia. In its latest financial performance for the second quarter of calendar year 2024, however, Alphabet said that these ongoing disputes related to Russia will not have a significant adverse effect on its overall business. Alphabet further acknowledged that the legal matters include issues related to account closures and progressive fines connected to suspended accounts of sanctioned individuals.
Google’s Russia entity declared bankrupt in 2023
Google’s Russian subsidiary filed for bankruptcy in the summer of 2022, and by November 2023, a court officially declared it bankrupt. Alphabet indicated that debts exceeded 19 billion rubles while the subsidiary’s assets were valued at only 3.5 billion rubles, leading to the company’s decision to stop advertising operations in Russia in compliance with Western sanctions.