Google Faces Issues Over Unfair Competition in Russia

Russia’s Federal Antimonopoly Service (FAS) has accused Google, Inc. and its Russian and Irish subsidiaries of breaking the Russian antimonopoly law, i.e. abusing the dominant market position.

Earlier this year, the Russian Internet company Yandex, which operates the largest search engine in Russia, filed a complaint with the FAS about Google’s practice of pre-installing Google applications, such as Google Play and Google Mobile Services, on Android devices.

Yandex, which also develops mobile apps, argued that Google required mobile phone makers to install Google applications on Android phones intended for sale in Russia and place the apps on the home screen. According to allegations, Google had incorporated relevant clauses into all its contracts preventing Russian smartphone vendors from installing its competitors’ applications and services.

The FAS ruling has not been published yet, but according to the law, Google faces a fine of up to 15 percent of its 2014 Russian revenue. The decision can be appealed.

Prepared by: Alla Prikhodko

For more information, please contact russia@petosevic.com.

Source: Russian business newspaper RBC Daily, Reuters, Newsfactor.com