Russia issues a fine of $6.8 million in an antitrust case against Google

Russia fight against google(Photo: indianexpress)

It is rumored that Google’s promotion of its own services over the other alternatives such as Yandex on the Android was extremely anti-competitive. Thus the Russian Federation Antimonopoly Service (FAS) has issued of measly $6.8 million fine against Google which will surely leave them bankrupt.

Google has annual revenue of $75 billion and this fine is a very tiny amount for them. It is basically based on a cut of 15% of only Google’s revenue in Russia in 2014.Google has claimed that it will further decide its next step after evaluating the ruling handed over by the FAS. And this probably includes not only paying the fine although it is a small amount of money but it signifies that Russian authorities have considered the way that Google operated android is illegal But the company does not want to admit that without an appeal.

The issue here is an agreement which grants OEMs to gain access to the Google Play Services. Because some of the apps from Google need to be included on the devices and have to be put as default. This clearly irks as it clearly wants to be given a prominent placement on the mobile phones. And of course because android is an open source everyone is allowed to create a fork if they don’t want to use the ecosystem of Google but everyone wants to get access to the Play Store on android. This could cause a messy situation is Russia as this could begin monetary penalties there.

Google 75 billion in annual revenue as compared to Russia which akin to a rounding error the newest setback for the company is ruling against Android at the time of climbing global competition investigations.

Europeans Unions top antitrust official, Margrethe Vestager charged Google of using android to promote its own private services unfairly which include the Google maps and the Google search as compared to those of its rivalries.

The company has also been charged in a separate case of competition as well by the European Union, who accused the company of favoring some of its own search services as compared to those of its rivals. Thus they filed in the third set of charges linked to Google search services in July which was offered to the third party websites such as the newspapers and other online retailers.

Google disagrees with the accusations and claims that it competes equally and fairly with other companies such as Yelp and Microsoft. It also claims that the mobile phone makes are also free to use android services provided by other rivals. They say that they do not make money from the mobile operating system by licensing them directly to the companies but they take a cut from all the ads which are shown on the online searches.

The Company has woe against its antitrust accusations and now they are also spread all around the United States where the FTC is considering these accusations that Activities of Google which are linked to the Android are completely not competitive. It has been investigated by the American officials that the company surely has favored some of its services over the rival services unfairly but has decided not to bring any charges to them.

Also in India the national antitrust authority sent the company a report last year explaining of its concerns about the search dominance and uncompetitive behavior as well, India is one of the fastest growing Google’s markets.

It was suggested by the officials of India that by ranking its own services ahead as of the rivals in Google search the company was abusing the more dominant market position and this was according to the people who have the knowledge about this report as it has not yet been made official.

About the Author

Mariangel Silva
Mariangel Silva is a senior reporter on NY Daily. Bachelor of Arts in International Development Studies from McGill University.

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