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Russia decides to fine Google: The amount? No less than 20 trillion dollars

Written by Bruno Teles
Published 31/10/2024 ร s 02:14
Russia decides to fine Google: The amount? No less than 20 trillion dollars
Google has not shown any concern about paying the fine so far (Image: Reproduction)

In a move that defies the concept of โ€œimpossible,โ€ Russia has imposed a fine on Google that is not only shocking, but borders on the unbelievable: $20 trillion. To give you an idea, this amount exceeds all the money in existence on the planet. Amid this monstrous sum, the technology giant, Google, continues with its agenda almost intact and shows no signs of concern, treating the situation as yet another battle in its vast portfolio of global litigation.

The exorbitant fine stems from a legal battle that began with the blocking of Russian channels on Google-owned YouTube, including Tsargrad, Zvezda and the well-known Russia 1, which disseminated pro-Kremlin content. Googleโ€™s actions were in response to international sanctions against Russia following its invasion of Ukraine and resulted in an initial fine of 100.000 rubles per day. However, the fine has accumulated compound interest since 2020, resulting in a surreal amount that is unmatched in the history of financial sanctions.

To illustrate further: the global Gross Domestic Product (GDP) is around $100 trillion, while the amount charged to Google by Russia is approximately 200.000 times that amount. In other words, Google, if I had to pay, would need to generate wealth equivalent to more than two hundred times everything the world produces annually. The situation goes beyond a penalty; it is a value that challenges the very understanding of global finance and resources.

Google shows no signs of concern over Russia fine

Despite the extraordinary value and potential legal implications, Google remains seemingly calm. Alphabet, Googleโ€™s parent company, recently stated in its financial report that this dispute โ€œwill not have a material adverse impactโ€ on the companyโ€™s finances.

In fact, Google reported revenue of $88,2 billion in the third quarter, demonstrating that its global operation remains robust, while its operations in Russia have been virtually closed since 2022. The technology giant, despite having suffered sanctions, maintains some of its services available in Russia, such as the search engine and YouTube, in contrast to the blocking of platforms such as Twitter and Facebook by Russian authorities.

Permanence of some services in Russia

The relationship between Google and the Kremlin, marked by friction and legal battles, is not a complete rupture. The fact that some services remain in Russia reveals a scenario of controlled permissiveness between the parties, while the Russian government advances international actions to seize Google assets around the world. Even so, these attempts to block Google are met with resistance in international legal systems, which make it difficult to seize the company's global assets.

For Google, this dispute with Russia It is just another chapter among the multiple fronts in which the company operates judicially, with the same tranquility with which it displays its impressive financial results. And, for now, the frightening amount of the fine seems to be far from representing a real financial problem for the technology giant.

In addition to Russia, Google faces legal and regulatory challenges in several countries

The European Union has imposed several billion-dollar fines on Google in recent years. The company has been penalized in cases involving anticompetitive practices, such as using Android to favor its own services, manipulating search results to benefit Google Shopping, and commercial practices in the advertising market. The fines total more than US$9 billion since 2017.

Google is embroiled in antitrust lawsuits filed by both the Justice Department and individual U.S. states. The lawsuits target monopolistic practices in the digital advertising and search engine market that regulators say hurt smaller competitors and limit innovation in the industry.

India recently fined Google approximately $275 million, alleging abuse of its dominant position in the Android market and Play Store. Google was accused of using its operating system to promote its services and limit competition in the app market.

Google has already faced sanctions and investigations in Brazil on privacy issues, such as the use of user data for advertising and the collection of information without proper consent. In addition, recent regulations under the General Data Protection Law (LGPD) have created more challenges and requirements for the company's operations in the country.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 2.300 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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