-A sum larger than the world’s GDP
October 30, 2024
By Samuel Ogunsona
A Russian court has imposed an unprecedented fine on Google, ordering the tech giant to pay $20 decillion for blocking Russian media content on YouTube.
This staggering amount dwarfs the estimated global GDP of $100 trillion, making it one of the largest fines in history.
The fine is the result of a four-year court battle that began when YouTube banned the ultra-nationalist Russian channel Tsargrad in 2020, following US sanctions against its owner. Seventeen Russian media stations, including Zvezda, a TV channel owned by Putin’s Ministry of Defence, are now suing Google, alleging that the company violated Article 13.41 of the Administrative Offenses Code.
The fine has been calculated based on a daily penalty of 100,000 rubles ($1,025), which doubles every week, resulting in an exponential increase in the total amount owed.
This compounding interest has led to the astronomical fine, which Google is unlikely to pay.
Google’s presence in Russia has been inactive since 2022, after the company withdrew from the country following Putin’s military operation in Ukraine. Russian authorities have seized Google’s bank accounts, rendering the company’s Russian subsidiary effectively bankrupt.
Despite the massive fine, Google remains unfazed, stating that ongoing legal matters related to Russia will not have a material adverse effect on the company’s financials. Alphabet, Google’s parent company, reported $88 billion in quarterly revenue, indicating that the fine is unlikely to bankrupt the tech giant.
