In a recent development, Google (GOOGL.O) has been slapped with a fine of 15 million roubles ($164,000) by a Moscow court. The penalty was imposed on Tuesday due to Google’s persistent refusal to store Russian users’ data on servers located within Russia. This move follows Russia’s ongoing clashes with foreign technology companies, particularly concerning content, censorship, data storage, and the demand for local representation. The tensions in this dispute escalated notably after Moscow deployed armed forces into Ukraine in February 2022.
Persistent Disputes Over Content and Local Representation
Google’s Russian subsidiary has been a focal point of criticism in Russia, primarily for its failure to delete content that Moscow deems illegal. Additionally, the tech giant has faced scrutiny for restricting access to certain Russian media outlets on its video-sharing platform, YouTube.
Amid these controversies, Google’s Russian unit took a significant hit in the summer of 2022 when it filed for bankruptcy. The authorities seized its bank account, rendering the company unable to fulfill financial obligations such as paying staff and vendors. This financial turmoil further intensified the strained relationship between Google and Russian authorities.
Ban on Platforms and Google’s Continued Operations
While the Kremlin has taken a hardline approach by banning certain social media platforms like Twitter and Facebook, it has not implemented a complete block on Google’s services. Notably, Google’s search engine and YouTube platform, free to users, have continued operating in Russia. This contrasts with the fate of other platforms that faced outright bans.
Despite the substantial fine imposed on Google, the tech giant has not yet responded. The company did not immediately respond to emailed requests for comment, leaving the public awaiting further insight into its stance. It remains to be seen how this latest development will impact Google’s operations in Russia and whether there will be any subsequent legal or strategic moves in response to the imposed penalty. ($1 = 91.4250 roubles)
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