FAS has put Google a fine of half a billion rubles
Recently, the Federal Antimonopoly Service (hereinafter referred to as FAS) imposed a fine in the amount of half a billion rubles on a US corporation for exceeding its authority with respect to companies producing mobile devices based on Android. Thus, Google representatives forbade the introduction of software developed by competitors to the list of embedded applications for manufactured mobile devices.
The Yandex company decided to challenge the illegality of these actions and in February 2015 filed a complaint with the FAS. After considering the appeal of the Russian giant, it was decided to satisfy his claim. Violation of articles of antitrust laws by representatives of Google, as well as its branch – Google Ireland – has been proven. According to the representatives of Yandex, when trying to conclude contracts for the pre-installation of proprietary applications in the soft pool of mobile devices of some brands, they encountered some resistance. Among the brands listed are manufacturers such as Explay and Fly, as well as other companies that they have chosen to keep silent about. All these concerns have terminated the agreements aimed at installing Yandex applications in the basic software package of mobile devices, citing their actions by the fact that these actions are subject to restrictions imposed by Google under the contract.
According to the FAS decision, the Americans will have to amend the already signed and all subsequent agreements with companies producing devices from the mobile segment. The contract should exclude the item on installing only selective applications in the basic package of devices. As you can guess, Google Play is necessarily included in this package, as well as the well-known products of the Google Mobile Service line. The icons of all these products were to be installed on the main screen of the device, and Google was set as the default search engine. As for competitors, access to manufacturers was completely blocked by them.
As for the amount of the fine, according to preliminary data, it will amount to 7% of the corporation’s net annual revenue in the market where there was a violation. About this amount of the fine previously warned Igor Artemyev, who is the head of the FAS. Based on these data, we can conclude that the annual revenue of Google from its Google Play brainchild reaches a record 6.3 billion rubles in Russia. By the way, the American corporation does not like to advertise data on its earnings in individual countries or market segments. Apparently, for good reason.
Despite the fact that Google has already twice tried to challenge the prescription, Yandex managed to restore the balance in the mobile software market, and by the end of June a growth in the share of the Russian corporation in the Android device market was noted.