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Home News

Russian court orders seizure of $7 mln in Google’s Russian funds, property

by Srestha Roy
April 27, 2022
in News
Reading Time: 2 mins read
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Russian court orders seizure of $7 mln in Google’s Russian funds, property
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In a dispute over Google’s limits on a renowned television company’s YouTube channel, a Moscow court ordered the seizure of 500 million roubles ($7 million) worth of Google’s property and funds in Russia, according to news outlets.

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Google (GOOGL.O) of Alphabet Inc. did not immediately reply to a request for comment.

According to Russian news outlets, the issue involves GPM Entertainment Television, a subsidiary of Gazprom Media Holding, which filed a lawsuit demanding that Google restore access to its YouTube account.

Russia’s communications regulator and officials are putting pressure on YouTube, which has restricted Russian state-funded media abroad.

As it tries to control information flows after sending tens of thousands of troops into Ukraine on Feb. 24, Russia has blacklisted certain other Western internet services, including Meta Platforms Inc.’s (FB.O) Facebook and Instagram. For the time being, YouTube is still accessible.

Interfax quoted Moscow’s Arbitration Court as saying, “The claim of GPM Entertainment Television about interim measures has been granted.”

“Seizing funds (including cash that will flow into bank accounts) and all movable and immovable property owned by Google, for a total value of 500 million roubles,” the statement read.

On April 13, the court dismissed an earlier claim by GPM Entertainment Television, according to RIA.

Gazprom Media has a number of important social media and television properties in Russia, some of which are benefiting from the exodus and embargo of Western internet companies.

Domestic Russian IT enterprises, driven by entities controlled or affiliated with state-owned gas giant Gazprom, are capitalizing on the embargo and departure of global internet firms, seeing opportunities in Russia’s rising digital isolation.

Since sending thousands of troops into Ukraine on Feb. 24, Russia has banned access to Twitter’s (TWTR.N) and Meta Platforms’ (FB.O) flagships Facebook and Instagram, as the country’s long-running feud with Big Tech grows into a war for control of information flows.

Domestic players have stepped up as a result of the digital exodus sparked by Western sanctions and a crackdown by Russian media regulators, with VK (VKCOq.L), which controls the country’s most popular social media site VKontakte, spearheading the drive. It released a step-by-step guidance for firms wishing to move away from other platforms.

VKontakte, which has been dubbed Russia’s Facebook, has more than 50 million daily active users on average and reaches 80 percent of Russia’s online monthly population, according to the business.

According to the monitor, the volume of Russian-language information produced on Twitter, Facebook, and Instagram decreased by 5%, 16%, and 30%, respectively, during that time.

Vkontakte generated a little more than a fifth of the company’s 125.8 billion roubles ($1.5 billion) in income last year, thanks to advertisements, app developer commissions, and user fees for subscriptions and one-time payments.

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