Western tech companies may be leaving Russia in droves, but the Russian government isn’t letting them go without attempting to extract some cash in the form of fines.
As Reuters reports(Opens in a new window), Russia’s communications regulator Roskomnadzor has opened cases against Apple, Airbnb, Google, Likeme, Pinterest, Twitch, and UPS for failures to comply with Russian legislation. Google was fined $46,000 last year for storing personal data outside of Russian territory, now it could face a further fine of between $90,000 and $270,000.
The same looks likely for the other companies mentioned above. In all cases, it seems Roskomnadzor isn’t happy with the way in which personal data was stored and/or the location of its storage, but the action may also relate to content and censorship within Russia. However, unlike Google, Apple, Airbnb, Likeme, Pinterest, Twitch, and UPS will have their fines limited to up to $90,000 because they are first offenders.
If Google is found guilty of another breach, paying the fine could prove difficult. Earlier this month, Google filed for bankruptcy in Russia after Russian authorities seized its bank account and made it all but impossible for operations to continue. With that in mind, any fine would have to be paid by Google’s main US operation, which is very unlikely to happen due to the current sanctions in place.
It’s likely to be the same situation if any of the other companies are issued a fine unless they have cash reserves still available in Russia. For now, nobody seems to be commenting on either the accusations of legislation being breached or the complexities of paying a fine if one is issued.
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