06 Nov Tech News : Google Fined All The Money In The World!
A Russian court has fined Google over two undecillion rubles (a 36-digit figure, i.e. a sum that’s greater than the world’s total GDP) for removing Russia’s state media channels from YouTube.
Two Undecillion Rubles… And Growing!
As if being initially fined more money than there is in the world isn’t enough, Russian state-owned news agency TASS reports the state’s lawyer in this case, Ivan Morozov, as saying, “This number is growing daily because of penalties incurred due to non-payment.”
Actually, It Could Be a Limitless Fine
It’s also been reported that Morozov has said that if the fine is not paid within nine months, it doubles every day after that, and there is no limit on this number!
How and Why?
The fine originated from Google’s decision to restrict access to several Russian state-affiliated media channels on YouTube, a move the Russian government has interpreted as politically motivated censorship. Google initially began blocking Russian media, including Tsargrad TV and RIA FAN, in 2020. Following the sanctions imposed on Russia in 2014 after its annexation of Crimea, Google faced mounting pressure to comply with Western sanction policies, which restricted content from entities associated with individuals or organisations under these sanctions.
Escalation
The situation escalated dramatically after February 2022, when Google expanded its restrictions, this time blocking prominent Russian state channels like RT, Sputnik, NTV, and Russia 24. This expanded set of bans came in the wake of Russia’s invasion of Ukraine and was largely in line with sanctions imposed by Western governments on Russian state-controlled media. Google argued that these removals were consistent with both sanctions and YouTube’s own content policies.
The Legal Battle That Followed
In response to these actions, Russian media channels filed lawsuits against Google in Russian courts, demanding reinstatement on YouTube and hefty fines for Google’s continued defiance. Perhaps not surprisingly, the Moscow Arbitration Court ruled in favour of the plaintiffs (the Russian state) and ordered Google to restore the channels. This led to a ruling where Google would face progressively severe fines until it complied with the court order.
These fines were set to increase exponentially, with an initial penalty of 100,000 rubles (£794) per day. When Google failed to reinstate the channels, the daily fines began to double at a rapid pace. By September 2023, reports indicated the total fine had surged to 13 decillion rubles (33 zeros) – the equivalent of £103.2 nonillion – and by October, it had reached the unprecedented two undecillion mark.
Google’s Response – Bankruptcy in Russia and International Legal Measures
Facing these overwhelming financial demands, Google’s Russian subsidiary, Google LLC, declared bankruptcy in June 2022. According to company representatives, the subsidiary’s debts had exceeded 19 billion rubles, while its assets were estimated to be only 3.5 billion rubles. Google’s bankruptcy declaration marked the company’s official exit from Russia, yet the fine continued to grow, as Google’s decision to pull out did not halt the penalties.
To limit further exposure, Google has launched defensive legal actions in other jurisdictions, filing cases in US and UK courts against Russian state channels RT, Tsargrad, and Spas. Through these cases, Google is seeking rulings to prevent these media channels from initiating similar lawsuits outside Russia. Google’s reasoning is that Russian court decisions should not carry legal weight internationally, especially when they pertain to companies acting in compliance with sanctions on state-owned media.
Trying to Seize Google’s Assets
However, it seems that Russia has attempted to pursue Google’s assets outside its borders in a bid to actually enforce its court rulings. In June 2023, the High Court of South Africa granted Russian authorities permission to seize Google’s assets within South Africa after the company did not comply with a Moscow court order to restore Spas’s YouTube account. This ruling marked one of the few instances where a Russian court decision was enforced internationally, though the scale of assets seized was minuscule compared to the multi-undecillion fine imposed in Moscow.
While seizing assets within Russian territory might once have been feasible, Google’s withdrawal from the country has made enforcement nearly impossible. However, Russian authorities have continued trying to explore asset seizure in other regions, including Turkey, Hungary, and Spain, though these international pursuits have yet to yield substantial recoveries.
The Consequences for Google
While the fine’s actual collection is, as you may expect from the ludicrously large figure, almost impossible, the political pressure from Russia could create a long-lasting effect on Google’s operations and reputation. The enormous fine highlights Russia’s determination to exercise control over foreign tech companies operating within its jurisdiction and represents a broader, international standoff over information control.
Could It Set a Precedent for Other States?
In fact, although the level of the fine may sound ridiculous, Russia’s approach could set a precedent for other states with similar grievances to pursue legal action against tech giants, especially where national sovereignty and content censorship intersect. Tech companies like Google, with operations in politically diverse regions, therefore face the complex challenge of balancing platform neutrality with compliance with local legal and political pressures.
What Has Google Said About It All?
Google has responded to Russia’s escalating fines with a mix of official statements and legal actions, designed to illustrate its stance on the matter without directly engaging with the colossal monetary demands. For example, in its Q2 2024 report, Google’s parent company, Alphabet, briefly acknowledged the ongoing disputes with Russian authorities, noting:
“Google has ongoing legal matters related to Russia. For example, some of the disputes involve account closures, including for sanctioned individuals. The company has also been assessed progressive fines in connection with account suspension disputes, including for sanctioned individuals. We do not believe these legal matters will have a material adverse effect on Google’s business.”
This statement suggests that Google views the legal claims and fines as largely unenforceable outside Russia and unlikely to impact its core financial operations globally. Google has consistently argued that its actions (e.g. blocking channels tied to Russian state media) are in line with Western sanctions and YouTube’s policies against disinformation, which it aims to uphold across all regions.
Russia Not the Only One Restricted
It’s worth noting here that Russia is not the only state that appears to have had its official YouTube channels blocked by Google. Other states that have faced similar restrictions include:
– Iran, where various channels have been blocked due to US sanctions policies affecting Iranian state entities.
– Syria and Sudan, whose channels were blocked due to content critical of the government or politically sensitive material during conflicts.
– South Korea. Google has restricted thousands of pieces of content at the South Korean government’s request, i.e. restricting material that has criticised the government there.
What Does This Mean for Your Business?
The dispute between Google and Russia highlights the increasingly complex terrain that global tech giants face in balancing platform policies with the demands of local authorities. For Google, the sheer scale of the fine (two undecillion rubles and rising!) represents more than just a financial threat. In fact, it appears to highlight the lengths to which some governments are willing to go to enforce compliance from international companies, particularly in the realm of media and information control. Although Google’s exit from Russia has effectively rendered asset seizure within the country impossible, Russia’s ongoing attempts to pursue Google’s assets globally may serve as a warning to other companies operating in volatile geopolitical environments.
This case may set a new precedent, not only for Russia but for other governments seeking to impose their own rules on tech companies that manage information flows across borders. With YouTube’s global reach and influence, the stakes are high, as Russia’s actions signal a challenge to the control tech companies wield over content in international spaces. For other states observing this case, Russia’s persistence could inspire similar approaches, especially where media content is tightly regulated or where governments view certain narratives as critical to their sovereignty. Google’s stance that compliance with Western sanctions justifies its content decisions will, therefore, likely be tested further, particularly as other governments seek ways to enforce their authority over powerful global platforms.
Ultimately, this saga reflects the tension between state sovereignty and the global nature of digital information. As Google continues its legal battles to contain Russia’s claims within Russian borders, the case raises questions about the future of global digital governance. For now, Google’s strategy of defending its policies within Western legal frameworks suggests a focus on protecting its broader operations rather than bending to state-specific demands. However, as technology giants grapple with a patchwork of international laws and political expectations, the question remains – how sustainable is it for global platforms to uphold uniform policies in a world increasingly divided by political and cultural boundaries?