FAS has fined Google nearly half a billion rubles

The Federal Antimonopoly service (FAS) has fined Google and her daughter Google Ireland in the case of violation of competition, said in a statement. “Fine for Google over violation of the Antimonopoly legislation amounted to 438 million rubles. We hope that the company will execute our decision and pay the fine in the nearest future”, — quoted the Deputy head of FAS Alexei Dotsenko.

The representative of the press service of the Ministry Anna Orlov declined to specify what sums were calculated the amount of the fine, citing commercial secrecy. Earlier head FAS Igor Artemyev has warned that the amount of the fine for Google could be up to 7% of the company’s revenue derived in the market where the offense was committed. FAS has identified it as a market pre-installed app stores in Russia. If the FAS has not since changed his mind about the size of the fine, the revenue of the American Corporation from Google Play in Russia may amount to 6.3 billion RUB In Google did not disclose the financial indicators for individual segments and countries.

The case was opened in February 2015, according to the complaint, Russia’s main competitor Google — the company “Yandex”. Representatives of “Yandex” claimed to have faced restrictions from some manufacturers of mobile devices (Explay, Fly and others) — in particular, they terminated the contracts for the preset of mobile applications. Manufacturers relied on contract restrictions imposed by Google, stated in “Yandex”.

In September 2015, the FAS found Google and its Irish subsidiary, Google Ireland guilty that they prohibit manufacturers of mobile devices running on the Android operating system (owned by Google) and installing Google Play, preinstalled on the device applications of a competitor.

In his order of the Antimonopoly service of Russia has ordered Google to change the contracts with producers of mobile devices, including prisoners, and from there to remove the ban on pre-application competitors and items requiring manufacturers to install along with Google Play applications, products and services from Google Mobile Services (Google Play Store, Google Maps, Gmail, Drive, YouTube, Hangouts and Chrome), to place icons of these applications on the first screen of the mobile device and to set the default Google search.

However, in early June, the Deputy head of Department Alexander Golomolzin said that the Federal Antimonopoly service leads with Google negotiations on the conclusion of the settlement agreement. The representative of “Yandex” noted then in a conversation with RBC that the main goal for the company is to “restore the competitive situation in the market and elimination of consequences of the violations that were established by the FAS and approved by the court.” If Google voluntarily fulfill the key requirements of the underlying decision of the FAS in the result of a settlement agreement, the company is also satisfied, said the representative of “Yandex”.

The decision made in favor of “Yandex”, the American Corporation tried to challenge in Arbitration court of Moscow. However, in March the court the claim of the American company declined. Google continues to challenge this decision. The next meeting is to be held on August 16.

General Director of “Yandex” in Russia Alexander Shulgin, announcing the company’s results for the second quarter, said that the company managed to conclude new agreements for the distribution of their applications with the mobile device after the decision of the FAS. As a result of these agreements, the share of Russian companies in search on mobile devices with operating system (OS) Android began to grow in late June, said Shulgin.