FAS filed an administrative case against Google to determine the amount of the fine

FAS filed an administrative case against Google to determine the amount of the fine

MOSCOW, March 15. The Federal Antimonopoly service (FAS) of Russia initiated an administrative case against Google to determine the amount of the fine. This is stated in the records of the office.

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“FAS filed against Google Inc. case concerning an administrative offense under part 2 St.14.31 of the code of administrative offences (Cao)”, – the document says.

According to this article, for abuse of dominant position on the market of operating systems (OS) mobile devices in Russia, Google (owner of Android) can pay the fine in the amount from 1% to 15% of their revenue on the Russian market in 2014.

Under the agreement, Google shall, within five days from the date of receipt of the document to submit to the FAS information on revenues from the app store and Google Play and software that is distributed along with him, on the territory of the Russian Federation for 2014.

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Also, the Corporation must provide a written explanation and other information relevant to the case. In addition, Google must report to the office on March 31 for questioning and signing of the Protocol on administrative violation.

The head of Department of information technology FAS Vladimir Kudryavtsev said that the Agency has found violations of the American company of the Russian legislation on the basis of the law “On protection of competition”, the size of the fine will be determined already in the administrative code. “In the initial Commission (which found that Google had violated the Russian Federation law on competition – approx. ed.) had 13 people. Now on the basis of our decision, the Commission of the FAS in a different, more narrow, the team will conduct an administrative investigation and prescribe a penalty”, – said the representative office.

Penalty for Google is still not defined

The final amount of the fine (the amount of revenue Google in Russia and the percent fines) is still not determined, said Kudryavtsev. “As to the scope of the market can be variations, it’s a trade secret that I cannot reveal. The amount of the fine shall be approved by the Presidium of the FAS, I think that there is here a question accurately a couple of months,” – said Kudryavtsev. He added that the U.S. Internet company can still reduce the amount of the fine if you fix the violations in the course of administrative proceedings. While Google did not provide the FAS with any information on elimination of violations, said Kudryavtsev.

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The head of FAS Igor Artemyev in January 2016 stated that the amount of the fine American Corporation Google for violation of the RF law on competition, is likely to be 7% of the turnover for the year of 2014. In addition, the amount of the fine will take into account inflation for 2014 and prior to payment of the penalty in this case.

The FAS 14 September 2015 recognized Google GoogleInc. and Google Ireland Ltd. – violated the law on protection of competition (part 1 of article 10) on the complaint of “Yandex”.

The violation lies in the fact that the Google Play store on the Android platform application of the Corporation must be installed on the device, and placed on priority areas.

Also the Google search engine should be used by default. The company limits the preset competing applications.

Google disagreed with the decision of the FAS and appealed to the court. 5 February 2015 the court drew “Yandex” as a third party in the case and took the decision to hold hearings behind closed doors.

Yesterday, March 14, according to a participant of the judicial session, the Arbitration court of Moscow dismissed the claim of Google to the antitrust Agency.

The press service of the Russian office of Google said it would study the judgment to “determine next steps”. Earlier, the head of FAS noted that, based on the experience of the Agency, Google can challenge the decision of the service at least a year, so the process of elimination of violations and payments of fines may be delayed until 2017.