The Moscow arbitration court dismissed the claim of Google to the Federal Antimonopoly service (FAS) of Russia. This was reported by two persons present at the hearing. Google tried to appeal the decision of the FAS in its dispute with the “Yandex”.
The representative of “Yandex” noted that the company is satisfied with the decision of the court. The press service of Google in Russia declined comment, explaining that until he received the court’s decision. “It [the court decision] will have a positive impact on competition on the IT market of Russia”, — said the former head of Department of information technology FAS Vladimir Kudryavtsev (led in the FAS case against Google).
FAS recognized the American company and its Irish subsidiary, Google Ireland guilty of violating the law “On protection of competition” in part 1 of article 10 (abuse of dominance) in September last year. The service has seen infringement that Google prohibits manufacturers of mobile devices running on its Android operating system and installs the Google Play app store, pre-installs on devices apps competitors. The antitrust proceedings against Google was initiated at the request of its main competitor, the Russian search engine “Yandex” in February 2015.
Now Google will have to commence the implementation of the FAS order on elimination of violations, unless, of course, will not appeal today’s court decision, said Vladimir Kudryavtsev from the FAS. In October FAS has ordered Google to change the contracts with manufacturers of mobile devices, including those already prisoners, removing the ban from there to preinstall the apps of competitors and the points requiring manufacturers to install Google Play applications, products and services from Google Mobile Services (this package includes the Google Play Store, Google Maps, Gmail, Drive, YouTube, Hangouts and Chrome), to place icons of these applications on the first screen of the mobile device, as well as set the default search Google.
In addition, Google had to inform mobile users on Android, they have the ability to disable pre-installed apps already, standing to change default search in Google Chrome and install search widget and services, competitors, similar to that included in the package GSM services from the Google. Such notice should be displayed on the screens of mobile devices Android users was observed in the prescription of the FAS.
Google faces an administrative fine for violation of the Russian legislation. In early January of 2016, the head of FAS Igor Artemyev has informed, that its size can reach 7% of revenue in Google Play in Russia in 2014. The Corporation does not allocate the revenue from Google Play in their reporting and don’t do a breakdown by geography. According to analysts “Finam”, the evaluation of which has led the newspaper “Vedomosti”, the penalty can be as high as $4.6 to 4.9 million According to the calculations, the Google Play store in Russia in 2014 could earn about $40.5 million, a seven percent penalty would have amounted to approximately $2.8 million.