The Russian “daughter” of Google filed for bankruptcy in the Moscow Arbitration Court

The Russian "daughter" of Google filed a bankruptcy petition with the Moscow Arbitration Court. This follows from the data file of arbitration cases.

On June 16, a court fined Google 15 million rubles for refusing to localize the personal data of Russian users. In 2021, the company was already fined 3 million rubles for violating the localization requirement, and the fine was paid.

Google announced its intention to file for bankruptcy on May 18. From March 22, 2022, the company "foresees its own bankruptcy and the impossibility of fulfilling monetary obligations," the company said in a statement. They explained that the Russian office of Google can no longer work due to the arrest of a bank account. The pressure on the company from the Russian authorities has increased against the backdrop of the war in Ukraine, sanctions being imposed and confrontation in the information field.

On March 10, due to problems with payment in foreign stores, Google limited the work of Google Play in Russia. In addition, the applications of Russian banks that fell under the sanctions were removed from the store. Google later banned Russian users and developers from downloading and updating paid apps on Google Play. Free apps remain available. On June 7, the Moscow Arbitration Court seized 1 billion rubles in the accounts of the Russian division of Google as an interim measure in two claims of the All-Russian State Television and Radio Broadcasting Company.

At the moment, a turnover fine in the amount of more than 7.2 billion rubles was imposed on Google by the court on the claims of Roskomnadzor, it was required to be paid before March 19. In May, bailiffs opened a case against the company for the enforcement of a turnover fine. The company was also ordered to pay an additional 505 million rubles as an enforcement fee. Also, Google has been repeatedly fined by the court for not removing prohibited content on its sites, including YouTube. And in relation to the Russian "daughter" of Google, several lawsuits were initiated in the arbitration court, where the Russian media are the plaintiffs.

At the end of 2021, the "daughter" of Google received a net loss of 26 billion rubles. This is the company's first loss since at least 2009.

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