Google faces astronomical fines in Russia over media blocks

Google is encountering issues related to significant financial penalties in Russia, reaching 2 undecillion roubles, equivalent to 2.5 decillion dollars. These fines are due to the refusal to reinstate pro-Kremlin media accounts on YouTube. According to RBC, the penalties began accumulating from 2020 when media outlets like Tsargrad and RIA FAN won lawsuits against Google, reports the themoscowtimes portal.

In total, seventeen Russian television channels, including the state-owned Channel One and the military channel Zvezda, filed lawsuits against Google. YouTube, owned by Google, blocked these media outlets due to their support for the invasion of Ukraine. Moscow responded with fines but chose not to block the service.

Google's Russian branch declared bankruptcy in the summer of 2022 and was formally recognised as bankrupt in the autumn of the same year. Alphabet Inc., Google's owner, had earlier halted advertising in Russia, complying with Western sanctions related to the war in Ukraine, reports the themoscowtimes portal.

Several factors influenced Google's decision. In December 2021, a court imposed a turnover fine of 7.2 billion roubles (approximately £105 million) on Google's Russian branch for failing to comply with the decision of the Russian state media regulator Roskomnadzor, which ordered the company to remove certain content.

In May two years ago, court bailiffs initiated proceedings to enforce the fine. In 2022, the court confiscated assets of Google's Russian branch twice, totalling 500 million roubles (approximately £7 million), to secure funds in cases brought by state-owned television channels NTV and TNT, reported Meduza.

In May 2022, the company's account was seized, making it "impossible for our Russian office to operate, including maintaining employment and paying salaries, paying suppliers and subcontractors, and fulfilling other financial obligations.