Google’s Subsidiary in Russia Considers Initiating Bankruptcy

The Russian department of Google, Google LLC, voiced an intention to apply to the arbitration court with an application for recognition of its bankruptcy, which follows from the notice posted by the company on the Federal Resource. As stated in the message, since March 22, 2022, the company “anticipates its own bankruptcy and the impossibility of fulfilling monetary obligations.” 

At the moment, Google has been fined in excess of 7.2 billion rubles by the court of claims of the Federal Service for Supervision of Communications, Information Technology and Mass Communications (Roskomnadzor), which the company had to voluntarily pay by March 19, 2022.

In May, the bailiffs of the Russian Federation opened a case against Google on the enforcement of a revolving fine, which increased by 0.5 billion rubles due to the enforcement fee (a monetary penalty imposed on a debtor in enforcement proceedings if he does not comply with court decisions within the time for voluntary execution).

The company has also been fined by the court more than once for not removing prohibited content on its sites, including YouTube. In addition, several lawsuits have been initiated against the Russian department in the arbitration court, where the plaintiffs are the Russian media.

According to the results of 2021, the Russian legal entity Google received a net loss of 26 billion rubles. This is the company’s first loss since at least 2009. The legal entity was registered in 2005.

It is reminded that in May 2022, Google banned users and developers from Russia from downloading and updating paid apps on Google Play. Also, on March 10, due to problems with payment in foreign stores, Google restricted the operation of Google Play in Russia. In addition, the applications of Russian banks that have fallen under sanctions have been removed from the store.

Ru-Main, 20.05.2022
Source: Interfax 

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