Twice guilty: Google failed to challenge in court the decision of the FAS on violation of antitrust laws
The claim of the Internet giant Google to the Federal Antimonopoly Service (FAS) of Russia was rejected. In the lawsuit that Google filed with the Moscow Arbitration Court on December 10, 2015, the company demanded that the FAS decision of October 2015 in the case of Yandex v. Google be illegal.
In the fall of 2015, FAS recognized that Google was violating competition law. Initially, the case was initiated on the application of "Yandex" on February 20, 2015, accusing Google of restricting competition and the targeted obstruction of user access to software of other developers. Google was supposed to comply with the decision of the FAS before November 18, 2015.
The court session was held last week in private. The plaintiffs in the case are Google Inc. (USA) and Google Ireland Ltd., writes Interfax .
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FAS requires Google to eliminate the violation of the law "On Protection of Competition." This requirement concerns the abuse of a dominant position in the market for pre-installed Android app stores. In the course of the investigation, FAS concluded that the American company only allowed manufacturers to install Google Play on Android devices with only a number of other applications. At the same time, Google requires that they be placed in priority locations on the screen and prohibits vendors from pre-installing applications from other developers on their devices.
“[The court’s decision] will have a positive effect on competition in the Russian IT market,” said RBC's former head of the FAS information technology department Vladimir Kudryavtsev, who led the case against Google in the FAS.
Now, Google will have to proceed with the execution of the FAS order to eliminate the violations, unless, of course, it appeals the current court decision, he added.
Google faces an administrative penalty for violating Russian law. At the beginning of January 2016, the head of the FAS, Igor Artemyev, said that the amount of the fine could be 7% of the turnover of the Google Play application store in Russia in 2014.
According to analysts of Finam (data provided by the newspaper Vedomosti), the penalty could be about $ 4.6–4.9 million. According to RBC estimates , Google Play in Russia in 2014 could earn about $ 40.5 million, and a 7 percent fine would be about $ 2.8 million.
In the fall of 2015, FAS recognized that Google was violating competition law. Initially, the case was initiated on the application of "Yandex" on February 20, 2015, accusing Google of restricting competition and the targeted obstruction of user access to software of other developers. Google was supposed to comply with the decision of the FAS before November 18, 2015.
The court session was held last week in private. The plaintiffs in the case are Google Inc. (USA) and Google Ireland Ltd., writes Interfax .
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FAS requires Google to eliminate the violation of the law "On Protection of Competition." This requirement concerns the abuse of a dominant position in the market for pre-installed Android app stores. In the course of the investigation, FAS concluded that the American company only allowed manufacturers to install Google Play on Android devices with only a number of other applications. At the same time, Google requires that they be placed in priority locations on the screen and prohibits vendors from pre-installing applications from other developers on their devices.
“[The court’s decision] will have a positive effect on competition in the Russian IT market,” said RBC's former head of the FAS information technology department Vladimir Kudryavtsev, who led the case against Google in the FAS.
Now, Google will have to proceed with the execution of the FAS order to eliminate the violations, unless, of course, it appeals the current court decision, he added.
The share of mobile traffic in the search for “Yandex” in the fourth quarter of 2015 amounted to 27% compared to 26% in the third quarter. Revenues from mobile advertising accounted for 22% of revenues in the contextual advertising segment, compared with 21% in the third quarter.
The share of mobile search in the total volume of search traffic on Google in Russia, according to Sberbank CIB analysts, approached 50%.
Google faces an administrative penalty for violating Russian law. At the beginning of January 2016, the head of the FAS, Igor Artemyev, said that the amount of the fine could be 7% of the turnover of the Google Play application store in Russia in 2014.
According to analysts of Finam (data provided by the newspaper Vedomosti), the penalty could be about $ 4.6–4.9 million. According to RBC estimates , Google Play in Russia in 2014 could earn about $ 40.5 million, and a 7 percent fine would be about $ 2.8 million.
Source: https://habr.com/ru/post/299286/
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