Google Hit with Startling $2.5 Decillion Fine in Russia

Google is facing an unprecedented fine from Russia totaling approximately 2 undecillion rubles, equivalent to $2.5 decillion. This follows years of accumulated penalties tied to restrictions on Russian pro-Kremlin media.

The penalty arose from legal actions taken by Russian state-affiliated media outlets Tsargrad and RIA FAN, which sued Google after blocking their YouTube channels.

The fine reportedly started with daily penalties of 100,000 rubles in 2020 and has compounded weekly, according to an anonymous source cited by Russia’s RBC news website. Citing an unnamed source familiar with the court rulings, this accumulation allegedly stemmed from Google’s continued blocking of state-run and pro-Kremlin media channels.

The blocked accounts included 17 Russian media outlets and television channels, including Channel One and the military-affiliated Zvezda broadcaster. YouTube’s content restrictions on these are believed to be linked to their support of Russia’s actions in Ukraine, which led Russian authorities to respond with financial penalties.

Google Russia Subsidiary Declares Bankruptcy

Following intensifying sanctions and the subsequent freezing of its Russian bank accounts, Google’s Russian subsidiary filed for bankruptcy in 2022. Although Russia imposed substantial fines, it has not blocked access to YouTube, which remains one of the country’s most popular online platforms.

Google confirmed the ongoing legal challenges in Russia in its latest quarterly report, noting that “civil judgments that include compounding penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned parties.”

According to Google’s parent company Alphabet Inc., revenues in 2023 exceeded $307 billion for 2023. However, it said that it does not anticipate the Russian fines to impact its financial position substantially. Alphabet’s stability appears to be largely unaffected, as evidenced by the 5% rise in after-market trading values shortly after its third-quarter earnings report.

Google ceased ad operations in Russia in March 2022 in compliance with international sanctions. Over the past months, the company also stopped creating new accounts for Russian users and disabled AdSense accounts within the country. As of the latest update, although authorities imposed repeated fines, there is no full ban on the company’s services.

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