A Russian court has ordered Alphabet Inc.‘s GOOG GOOGL Google to pay a massive fine of $20 decillion for restricting content from Russian media outlets. The fine, which is expected to increase, is a result of a long-standing legal dispute.
What Happened: The fine was imposed after Google blocked the content of various Russian media outlets, including Tsargrad, a nationalist channel, in response to U.S. sanctions. This move sparked a legal battle that has now culminated in an astronomical fine, reported The Register on Tuesday.
The court has ordered Google to pay 100,000 rubles ($1,025) per day, with the fine doubling every week. The compound interest has now resulted in an “insane amount of money,” as described by the presiding judge.
Despite the staggering fine, it is unlikely to have a significant impact on Google’s parent company, Alphabet. Google has been inactive in Russia since 2022, following the country’s military operation. The Russian government allegedly seized Google’s bank accounts, effectively bankrupting its operations in the country.
The legal battle has now expanded to courts around the world, with Russia attempting to seize Google’s assets.
Why It Matters: This is not the first time Google has faced significant legal challenges. In June, Google was fined $14.85 million by the Turkish Competition Board for non-compliance with local competition regulations.
Similarly, in February, Google was faced with a $2.3 billion lawsuit from 32 European media groups, accusing the tech giant of inflicting financial losses through its digital advertising practices.
However, Google has also seen victories in its legal battles. In September, Google won its appeal against a $1.7 billion EU antitrust fine for anticompetitive practices involving its online search advertising business.
To provide some context, the World Bank estimates that global GDP is approximately $100 trillion, a mere fraction compared to the potential fine. On Tuesday, Google reported $88 billion in quarterly revenue, falling significantly short of the Russian fine.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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