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Published On: Wed, Apr 19th, 2017

Google Caves to Russian Federal Antimonopoly Service, Agrees to Pay Fine

nsnbc : Google ultimately caved to Russia’s Federal Antimonopoly Service, agreeing to pay $7.8 million (438 million rubles) for violating antitrust laws. The corporate Colossus will also pay two other fines totaling an additional $18,000 (1 million rubles) for failing to comply with past orders issued by state regulators. Last year Google caved to similar demands by the European Union.

Google_ban_AD_TurkeyIn August 2016 Russia’s Federal Antimonopoly Service responded to a complaint by Russian search engine operator Yandex and fined the U.S.-based Google 438 million rubles for abusing its dominant market position to force manufacturers to make Google applications the default services on devices using Android.

Regulators set the fine at 9 percent of Google’s reported profits on the Russian market in 2014, plus inflation. Similar to the case against the European Union Google challenged the penalty in several appellate courts before finally agreeing this week to meet the government’s demands.

The corporation also agreed to stop requiring manufacturers to install Google services as the default applications on Android-powered devices. The agreement is valid for six years and nine months, Russia’s Antimonopoly Service reported.

Last year Google, after a protracted battle, caved to similar antitrust regulations by the European Union, but the internet giant has also come under fire elsewhere. In 2015 Australian treasurer Joe Hockey implied Google in his list of corporate tax thieves. In January 2016 British lawmakers decided to fry Google over tax evasion. Google and taxes were compared to the Bermuda Triangle.

One year ago the dispute between the European Union’s competition watchdog and Google, culminated in the European Commission formally charging Google with abusing the dominant position of its Android mobile phone operating system, having launched an investigation in April 2015.

In September 2016 Indonesia’s Finance Minister Sri Mulyani stressed that Google’s economic activities in the country are subject to taxes. Mulyani added that all countries are facing problems with Google and electronic transactions. The fact that Google now caved to Russia’s anti-trust regulator suggests that Google’s understanding of globalization isn’t consistent with the national interests of members of the global, although increasingly globalized international community.

CH/L – nsnbc 19.04.2017

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