Google Faces Penalty Of 15% Of Its 2014 Revenue In Russia

Set to fight Russian anti-trust ruling over Android apps

google new logoGoogle, the U.S. multinational giant technology company, which specializes in Internet-related services and products covering areas such as online advertising technologies, search, cloud computing, and software, among others is in a spot of bother in Russia.

The company is accused of violating Russia’s anti-trust law by competing unfairly against its competitors.

According to press reports, Russia’s federal anti-monopoly service has declared that Google has abused its dominant position by requiring mobile firms to install all its apps.

Google, however, has denied that it has broken any rule and is set to challenge the ruling by the Russian oversight agency.

The American company has rejected the accusation that it forced or compelled partners to have its apps pre or post installed on mobile phones.

The company said no operator was compelled to install its apps and competition for its services remains intense.

Google was earlier given until November 18  to change its contracts with phone firms so its apps were not favored. The firm could face penalties of up to 15% of its 2014 revenue in Russia if it did not change its practices.

Google, however, is yet to comply with the ruling and continues its defense in mass media.

In a statement on its Russian blog, the company reportedly said, “We intend to challenge the decision in court and explain why we believe it to be unfounded.”

In the meantime, Yandex the major competitor to Google that prompted the investigation said it would welcome an “open trial” on the issue.

Yvad Billings Readers Bureau, Fellow

Edited by Jesus Chan

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