Explained: Why Russia has fine Google $20 decillion, more than the GDP of the entire world
By Sunita Iyer | First Published Nov 1, 2024, 1:26 PM ISTIn a landmark ruling, a Moscow court has imposed a staggering fine of $20,000,000,000,000,000,000,000,000,000,000,000 i.e. $20 decillion on Google for its failure to restore YouTube accounts belonging to banned pro-Kremlin channels.
In a landmark ruling, a Moscow court has imposed a staggering fine of $20,000,000,000,000,000,000,000,000,000,000,000 i.e. $20 decillion on Google for its failure to restore YouTube accounts belonging to banned pro-Kremlin channels.
This astronomical penalty surpasses Google's market value of $2 trillion and exceeds the entire global GDP, estimated at approximately $110 trillion.
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The fine, reported by Russian state media TASS, stems from Google's refusal to reinstate the YouTube accounts of Russian state media outlets and pro-government channels blocked following the country's invasion of Ukraine in 2022.
Kremlin spokesman Dmitry Peskov acknowledged the symbolic nature of the fine, stating, "Although it is a specific amount, I cannot even pronounce this number; it is rather filled with symbolism."
The legal battle dates back to 2020 when Google faced initial penalties of 100,000 rubles (around $1,000) per day for blocking channels belonging to Russian media outlets, including Tsargrad and RIA FAN. Under Russian law, these penalties have doubled weekly with no upper limit, resulting in the current astronomical sum of 2 undecillion rubles.
Seventeen Russian television channels, including the state-run Channel One and military broadcaster Zvezda, have filed legal claims against Google. These channels seek enforcement of court decisions made against the tech giant across various jurisdictions, including Turkey, Hungary, Spain, and South Africa.
In its latest quarterly earnings report, Google’s parent company, Alphabet, addressed the ongoing legal matters, asserting, "We do not believe these ongoing legal matters will have a material adverse effect."
Despite the challenges, Google's free services, such as YouTube and Search, continue to operate in Russia, although the company has restricted the creation of new accounts for Russian users and deactivated AdSense accounts in compliance with Western sanctions.
The situation escalated in 2022 when Google’s Russian subsidiary filed for bankruptcy after authorities seized its bank accounts.
This unprecedented legal ruling marks a significant moment in the ongoing tensions between Russia and Western tech companies, highlighting the challenges of operating in an increasingly complex geopolitical landscape.
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