2 weeks Ago By Iain Thomson
A Russian court has ruled that Google owes Russian media stations around $20 decillion in fines for blocking their content, and the fines could get bigger. To put that into perspective, the World Bank estimates global GDP as around $100 trillion, which is peanuts compared to the prospective fine. Google might be one of the most valuable businesses on the planet, but even if Sundar Pichai rummages around the back of the sofa he won't be able to raise the funds to pay the penalty.
The bizarre amount has been calculated after a four-year court case that started after YouTube banned the ultra-nationalist Russian channel Tsargrad in 2020 in response to the US sanctions imposed against its owner. Following Putin's illegal invasion of Ukraine in 2022 more channels were added to the banned list and 17 stations are now suing the Chocolate Factory, including Zvezda (a TV channel owned by Putin's Ministry of Defence), according to local media. "Google was called by a Russian court to administrative liability under Art.
13.41 of the Administrative Offenses Code for removing channels on the YouTube platform. The court ordered the company to restore these channels," lawyer Ivan Morozov told state media outlet TASS.
The court imposed a fine of 100 thousand rubles ($1,025) per day, with the total fine doubling every week. Owing to compound interest (Einstein's eighth wonder of the world), Google is now on the hook for an insane amount of money, or what the judge on Monday called “a case in which there are many, many zeros.” Not that there's much chance of bankrupting Alphabet over the issue.
Google in Russia has been inactive since 2022 after the search giant effectively pulled out of the country following Putin's special military operation. Google says the Russian authorities had seized its bank accounts and the offshoot was essentially bankrupt. The ad-spreader had over 200 staff in Russia and, while some have been relocated, others were laid off.
The battle is now on in courts around the globe as Russia seeks to seize Google's assets, with little success. The Chocolate Factory certainly seems sanguine about it. "We have ongoing legal matters relating to Russia.
For example, civil judgments that include compounding penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned parties," Alphabet reported in its last earnings statement [PDF]. "We do not believe these ongoing legal matters will have a material adverse effect." Google had no comment on the fine at time of going to publication.
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