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Google fined $2.5 decillion by Russian court over Android monopoly
Introduction
On July 19, 2022, a district court in Moscow ruled against Google and ordered the company to pay 434 billion rubles ($5.8 million USD) for abusing its dominant position in the Android operating system market. The court found that Google had violated Russian antitrust laws by requiring manufacturers to pre-install its apps on Android devices and by restricting their ability to distribute forked versions of the operating system.
What is the case about?
The case was brought by the Russian Federal Antimonopoly Service (FAS), which had been investigating Google's practices since 2019. The FAS alleged that Google had engaged in anti-competitive behavior by:
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Requiring manufacturers to pre-install its apps on Android devices
Restricting manufacturers from distributing forked versions of Android
Using its Play Store to promote its own apps and services
The FAS argued that Google's practices had stifled competition in the Android market and had harmed Russian consumers.
What did the court find?
The court agreed with the FAS and found that Google had violated Russian antitrust laws. The court found that Google's practices had:
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Prevented competition from emerging in the Android market
Led to higher prices for Android devices
Reduced consumer choice
The court ordered Google to pay 434 billion rubles ($5.8 million USD) in fines. The court also ordered Google to change its practices and to allow manufacturers to pre-install any app they want on Android devices.
What does the ruling mean for Google?
The ruling is a significant setback for Google. The fine is the largest ever imposed on the company and it could have a major impact on Google's business in Russia. The ruling could also encourage other countries to investigate Google's practices and to take action against the company.
What does the ruling mean for consumers?
The ruling could have a positive impact on consumers. The ruling could lead to lower prices for Android devices and it could give consumers more choice in the apps they install on their devices.
Conclusion
The ruling is a major victory for the FAS and for Russian consumers. The ruling could have a significant impact on Google's business in Russia and it could encourage other countries to investigate Google's practices and to take action against the company.