Google fined over unfair market competition by a Russian Court

Kramer Phillips By Kramer Phillips | 4 years ago

Google has been fined $6.75 million for violating antitrust rules on tablets and mobile phones. Research done by Russian authorities showed that the app had breached competition rules.

On Thursday, the country’s Federation Anti-monopoly service (FAS) put Google in the spotlight. They argued that the company had forced mobile phone to include the Google search on the home screen of all Android devices. The company had also bundled other services with Google Play while preventing manufacturers from pre-installing competing services.

The case began officially in February 2014. This is after Yandex, a competing company, filed an official complaint against the Google. Google received the notification about the fine from FAS. The company is studying the decision carefully before determining further action according to an email.

FAS in a statement said that the Russian law applies to all businesses operating in the country.
The penalty is not considered as a significant loss by the multi-billion company. The company had registered a global annual turnover estimated at $74.5 billion.

Russian authorities are however limited in strength. They can only fine up to 15% of domestic earnings. Though the penalty is less, FAS made an order that was sure to shake up the company.
In April, competition commissioner Margaret Vestager sent a Statement of Objections to the company. She said that the company had misused its dominant position. They were either clean it up or face a fine worth 10% of its annual turnover.

The company is required to change the restrictions it places on device makers. The company is appealing against the order. A hearing is scheduled for August 16.