Thursday, August 11, 2016

FAS fined Google nearly half a billion rubles – BBC

The deputy head of the Federal Antimonopoly Service Aleksey Dotsenko expressed the hope that the company will fulfill the authority’s decision and pay a penalty in the near future.

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In the course of the investigation, which began in 2015 year, the oversight office has found that Google delivers to manufacturers of smart phones, which are sold in Russia, the store Google Play applications only on condition that the device will be installed, and other services of the American corporation. Among them are listed and the Google search engine, which should be posted on the home screen of your smartphone. In September 2015 the FAS concluded that IT-corporation violates Part 1 Article 10 of the Federal Law “On Protection of Competition” (abuse of dominant position).

«We have received notification from the Federal Antimonopoly Service of the imposition of a fine. We carefully review the decision before determining next steps »,

– told” Gazeta.ru “in Google’s press service. IT-giant as described in the company, will continue to cooperate with all stakeholders, and to talk about the opportunities that Android gives users, developers and device manufacturers in Russia.

«Fine, appointed by the FAS – a precedent case which indicates such a large cross-border companies, that they are obliged to take into account the subtleties of the antimonopoly law and the interests of national players in the countries in which they operate »,

– told “Gazeta.ru” director of external communications Rambler & amp;. Co Matvey Alekseev

Good news for “Yandex»

The reason for the initiation of the case was the claim of the Russian company “Yandex”. In 2014, three vendors – Fly, Explay and Prestigio – refused to establish a domestic search engine services on their smartphones and tablets, referring to the terms of Google. Due solutions manufacturer devices “Yandex” has lost one of the opportunities to increase its share of the Internet search market in Russia and other developing countries, by increasing the proportion of mobile Internet

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FAS filed a case at the end of February and the first meeting of his appointed on April 13, 2015, but consideration has repeatedly . tolerated

In “Yandex” did not comment on the announced Federal Antimonopoly service fine, noting that its definition -. case supervisory service

«we have never it was the requirement that Google was fined. We were interested in anti-competitive practices on the Android platform. When Google will stop them, then we can say we are satisfied, “Yandex” or not »,

– said in an interview with” Gazetoy.Ru “spokesman Vladimir Isayev of the Russian company.

After the FAS found Google guilty, the agency issued a determination until November 18 to eliminate violations of the antimonopoly legislation. In particular, the company was excluded from the requirements of agreements that restrict the installation of applications for Android, and other development services.

However, IT-company ignored the request of the Russian authorities and tried to challenge the decision of FAS in court. In March of this year, the claim was rejected, and the verdict on recognizing Google guilty upheld.



Two seconds, lingering for months

In the antitrust case against the US search engine tolerated not only processing times, but also the determination of the amount of the fine. At the end of last year, Deputy Head of FAS Anatoly Golomolzin stated that a decision can be made within a month or two. Later, the head of department Igor Artemyev said that the amount of the fine can be up to 7% of the annual turnover of Google applications in the field of sales and internal purchases

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«fine in rubles for the year 2014 trafficking. We take into account inflation in the amount of the fine. Most likely, it will be 7% of annual turnover, taking into account various factors, aggravating factors: delays in the process and so on “, – said the head of the FAS. It is also said that Google can pay a fine in the amount of from 1 to 15% of its revenues on the Russian market in 2014. The exact amount of service representatives are not called.

In March, Artemyev said the FAS that can calculate the fine for Google «in two seconds.” According to him, the agency is not in a hurry, as “waiting for the appeal» Google the court’s decision.

It was expected that the FAS will announce the amount of the fine on 11 April. But then the day the announcement was postponed several times. In the spring of this happened at least three times.

Despite the fact that the spring Artemyev talked about “aggressive» Google policy and did not see the compromise now, at the beginning of the summer it was reported that the FAS does not preclude the possibility of a settlement agreement with Google for antitrust proceedings. In addition, Artemyev said that the fine may be reduced if the company recognizes the breach and perform the FAS issued a prescription.

«We would be interested in that, so as not to ruin the company, not to remove them from the market. But it is necessary to remove the effects of unfair competition “, – at the same time, deputy head of the Ministry Andrei Tsarikovsky

The whole world is against Google

In Europe, authorities are struggling with Google on several fronts: in addition. antitrust cases European countries periodically convict a US company in tax evasion. For example, in Italy, Google accused of tax evasion in the period from 2008 to 2013 and was appointed a fine of € 300 million. In the UK, in turn, agreed with the company to collect £ 130 million ($ 185.4 million) and ordered to IT -giganta pay a higher tax rate in the future.

The big challenge for Europe, Russia and South Korea some time now Google is an agreement with the manufacturers of smartphones and tablets. Investigations in different countries show that the corporation is forcing manufacturers to pre-install the operating system Android devices

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According to European investigators, IT-giant demanded not to sell the devices working on Android versions, created by third-party companies, and paying vendors for priority Google search setup

About five. years ago in South Korea proceedings over the fact that Google has not been confirmed by the wine – the share of the corporation in the domestic market was only 10%. Currently, the South Korean Fair Trade Commission has decided to reopen the investigation.

The European Commission, in turn, regularly makes a complaint, as in Europe, the company occupies a leading position in popularity. EC is particularly interested in two disputes: according to investigators, Google is abusing its dominant position in the market by artificially limiting the show on sites and promotes in the search results to find products and compare the specific company’s price

The thing about Google’s abuse. dominant position in the European market of Internet search services investigated since 2010, and, according to Reuters reports, Google risks to pay a record fine of € 3 billion.

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