Google faces a fine in the amount of 7% of the turnover of mobile application store in Russia in 2014. Anti-competitive actions by Google in the beginning of last year FAS has complained of Russian “Yandex”.
Google may be fined in the amount of 7% of annual turnover, said the head of the Federal Antimonopoly service (FAS) Igor Artemyev. As reported by the Agency TASS, the head of Department pointed out that the fine sum taking into account “various factors, aggravating circumstances delaying the process and other things”. “The penalty will be assigned in rubles of the turnover in 2014 and will be made for inflation. Since the actual payment of the fine will be held in 2017, inflation will eat a third,” — said the representative office. According to him, practice shows that these “complex cases take about two years, so Google it is advantageous to delay the process.”
The maximum punishment which is prescribed for violation of the competition act, up to 15% of the turnover, specified earlier, the representative of the FAS. The amount of the fine is calculated based on the company revenues in a market where the violation occurred. FAS has identified it as a market pre-installed app stores in Russia: in the case of American Corporation we are talking about Google Play revenue in Russia.
The representative of Google in Russia Alla Zabrovskaya refused to comment on the possible size of the fine, citing the fact that the company is trying to challenge the decision of FAS. She expressed frustration that the Agency says the amount of the penalty, although the court has not yet taken place (it is scheduled for January 25).
In February of 2015 at Google in the FAS complained Yandex: a Russian company is required to test the competitor’s actions in the dissemination of devices with the Android operating system (owned by Google). Access to key platform components, in particular to the application store Google Play, without which it is almost impossible to sell Android devices, manufacturers can obtain only under Google. As a result, Google can put any restrictions up to a ban on cooperation with competing services, was stressed in the message “Yandex”.
Google, as prescribed by FAS, had until November 18 to change already entered into with the manufacturers of mobile devices, contracts, removing them from the ban and the items on which vendors are required to be installed with Google Play applications, products and services from Google Mobile Services (this package includes the Google Play Store, Google Maps, Gmail, Drive, YouTube, Hangouts and Chrome), to place icons of these applications on the first screen of the mobile device, as well as set the default search Google.
However, American corporations did not agree with the position of the FAS. In December, Google filed a lawsuit in the Moscow Arbitration court demanding to recognize illegal the decision of the Antimonopoly authority. The company “Yandex” has refused comments.