Google faces a $20 billion fine in Russia – here's what you need to know

Topline

The Russian government is seeking to fine Google about $20 trillion, a figure with 34 zeros that is exponentially larger than the global economy, over a decision by YouTube – owned by Google's parent company Alphabet – to block channels that run by Russian state media Russian officials.

The Kremlin said the fine, which totals more than global GDP, was “full of symbolism.”

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Important facts

A Russian court fined Google for “removing channels on the YouTube platform” and ordered the company to restore channels from Russian broadcasters or face unspecified additional fines, doubling every day, if they do not do so within nine Months will be paid, according to the Russian state outlet Tass.

YouTube announced in March 2022 that the platform would block Russian state media channels – including RT and Sputnik – for publishing content about the Russian invasion of Ukraine that violates the platform's policies on content that include “well-documented violent events.” “deny, trivialize or belittle.”

The channels were blocked in Europe before being blocked worldwide, and according to YouTube, more than 1,000 channels and over 15,000 videos were removed in 10 days. However, it is not immediately known how many channels have been removed so far.

Google began issuing daily fines of 100,000 rubles (about $1,028) in 2020 after Russian state broadcasters Tsargrad and RIA FAN won lawsuits against the company over the suspension of their YouTube channels. According to Reuters, these fines have doubled every week since then.

About 17 Russian TV channels have reportedly filed lawsuits against Google in Russian courts.

Google did not immediately respond to a request for comment.

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Cons

Google is unlikely to pay the penalty: The company said in its third-quarter earnings report earlier this week that it had “ongoing legal matters related to Russia,” including increased penalties, that would not have a “material adverse impact.” The 37-figure fine is “full of symbolism,” Kremlin spokesman Dmitry Peskov said Thursday and “could be a reason for Google management to pay attention to what is going on and take action.”

Big number

110 trillion dollars. That's the estimated value of the world's overall economy, according to the International Monetary Fund, which is a small fraction of Google's fine. Alphabet, Google's parent company, has a market valuation of $2.1 trillion at Thursday's share price.

Surprising fact

According to Tass, YouTube became inaccessible to thousands of users in Russia on August 8, although it is not immediately clear why the platform was blocked. Weeks earlier, Russian lawmakers had reportedly said upload speeds on YouTube in Russia would drop by 70% because the platform “violates and ignores the law with impunity.”

Important background

The crackdown on Russian media has intensified in recent years as social media platforms and U.S. officials accuse the media of disinformation campaigns – particularly after Russia's invasion of Ukraine, which was preceded by baseless claims about Ukrainians. The Biden administration last month accused Russia of election interference through an alleged disinformation campaign involving state media ANO Dialog and RT, formerly known as Russia Today. Days later, Meta reportedly announced that RT and Rossiya Segodnya would be banned from Facebook, Instagram and WhatsApp. Meta said in a report earlier this year that Russia remains the largest source of “coordinated inauthentic behavior” on social media platforms after the company criticized its failure to counter Russia's election interference efforts in the 2016 election to block on its platforms.