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August 12, 2016

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Russia imposes fine on Google

RUSSIA’S anti-trust authority yesterday fined Google 438 million rubles (US$6.75 million) after finding it guilty of abusing its dominant market position by forcing smartphone makers to install its search engine on Android phones.

The Federal Antimonopoly Service in September last year deemed Google in breach of a law on “protecting competition” after an investigation following a complaint by Russia’s largest search engine, Yandex.

Yandex asked the FAS to prevent Android phones from being automatically bundled with Google’s search engine.

The FAS said Google has two months to pay the fine.

Yelena Zayeva, the head of its department for regulating communications and IT, was quoted in the statement as saying the ruling “will allow the development of competition on the mobile software market in Russia, which will have a positive effect for consumers.”

All companies whose production is on sale in Russia have to observe the law on competition, “including transnational corporations,” Zayeva added.

Google said in a statement sent to AFP: “We have received notice of the fine from FAS and will analyze closely before deciding our next steps.”

“In the meantime, we continue to talk to all invested parties to help consumers, device manufacturers and developers thrive on Android in Russia,” Google said.

Google’s Android operating system takes 80 percent of the smartphone market.




 

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