FAS put Google a fine of half a billion rubles

17/05/2018

Recently, the Federal Antimonopoly Service (FAS) has imposed a fine of half a billion rubles on the American corporation for exceeding its powers with respect to companies that manufacture mobile devices based on Android. So, representatives of Google forbade to make the software developed by competitors, in the list of the built in applications for let out mobile devices.

The company “Yandex” decided to challenge the impropriety of these actions and in February 2015 filed a complaint with the FAS. After considering the appeal of the Russian giant, it was decided to satisfy his claim. The violation of articles of the antimonopoly legislation by representatives of Google, as well as its affiliate – Google Ireland – has been proved. According to representatives of Yandex, when trying to conclude contracts for the pre-installation of branded applications in the soft-pool of mobile devices of some brands, they encountered some resistance. Among the brands listed are manufacturers such as Explay and Fly, as well as other companies that they preferred to keep silent about. All these companies have terminated agreements aimed at installing Yandex applications in the basic software package of mobile devices, motivating their actions by the fact that these actions are imposed restrictions imposed by Google under the contract.

According to the decision of the FAS, the Americans will have to correct already signed and all subsequent agreements with companies that manufacture devices from the mobile segment. From contracts, the clause about the installation of only selective applications in the basic package of devices should be excluded. As you can guess, this package necessarily includes Google Play, as well as all the well-known products of the Google Mobile Service product line. Icons of all these products had to be installed on the main screen of the device, and as a default search engine Google was assigned. As for competitors, access to producers was completely blocked by them.

As for the amount of the fine, according to preliminary data, it will be 7% of the net annual revenue of the corporation in the market where there was a violation. Igor Artemyev, who is the head of the Federal Antimonopoly Service, earlier warned about this amount of the fine. Based on these data, we can conclude that every year, Google’s revenue from its brainchild Google play reaches a record 6.3 billion rubles in Russia. By the way, the American corporation does not like to advertise data about their earnings in individual countries or market segments. Apparently, not in vain. Despite the fact that Google twice tried to challenge the injunction, Yandex managed to restore balance in the mobile software market, and at the end of June, the share of the Russian corporation in the market of devices based on Android.

The author of the article: rSEO
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