Russia Hits Google With Gargantuan Fine

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Russia Hits Google With Gargantuan Fine

Key Takeaways

  • Russia demands $20 decillion fine from Google for banning Russian-led channels, exceeding global GDP.
  • Conflict began in 2020, resulting in sanctions on Russian channels, leading to increasing fines.
  • Google LLC declared bankrupt, assets seized, no compromise reached, fines still growing daily.

Google has been slapped with a colossal fine worth 20 sextillion USD (approximately) by Russia, due to their handling of certain Russian-managed YouTube channels that were restricted on the platform. The penalty is in retaliation for these actions.

Due to the prolonged conflict in Ukraine, the internet has also been affected negatively. Many websites and services have stopped accepting payments from Russian citizens, thus hindering individuals such as Russian Twitch streamers from generating income. It’s important to note that this restriction stems from a lawsuit initiated in 2020, which has since grown more complex over time.

Russia is aiming for an astronomical sum of 2 undecillion rubles (approximately $2.5 decillion USD or 2.5 trillion trillion trillion dollars) from Google, as reported by the RBC Group, due to blocking several Russian-led channels on their service. This figure is far greater than the total global GDP in 2022 ($100 trillion USD), indicating that Russia is demanding a fine larger than all the current liquid money in circulation worldwide. Even though Google’s parent company Alphabet generated $307 billion USD in revenue in 2023, it’s important to note that this massive fine exceeds their ability to pay. Yet, Google continues to grow financially on a daily basis.

How The Conflict Between YouTube and Russia Started

In the year 2020, Google faced a lawsuit due to blocking the Tsargrad TV and RIA FAN channels for allegedly breaching sanctions laws and trade regulations. After the block, Tsargrad TV filed a complaint in August of 2020, asking for the ban to be lifted and the channels to be reinstated on the site. The court ruled in favor of the Russian channels in 2021, with penalties imposed if no action was taken. Instead of lifting the ban, more channels were added to the list from 2022, including Sputnik, NTV, Russia 24, and all Russian state channels. By this time, Google’s Russian subsidiary, Google LLC, had filed for bankruptcy, and its assets were confiscated partially to cover the Russian fines. However, the fines against Google LLC amounted to over 19 billion rubles (around $196 million USD), while its assets were only valued at approximately 3.5 billion rubles ($36 million USD).

As of now, there appears to be no sign of resolution in the ongoing lawsuit or Google’s attempts at negotiation with Russia over the imposed penalty. It is uncertain whether the Russian government will take any steps regarding this fine, but for the present, it seems that the amount keeps escalating day by day.

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2024-10-31 01:23