Russian court fines Google $260,000 for breaching data rules

A court in Russia has fined America’s Google 15 million roubles ($260,000) for repeatedly failing to comply with a Russian law demanding technology companies to localize user data.

Tagansky District Court in Moscow said on Thursday it had imposed the fine for what it described as Google's repeated failure to store the personal data of Russian users in databases on Russian territory, Reuters reported.

The American company moved some employees out of Russia after Moscow launched its special operation in Ukraine in late February, following Kiev’s failure to implement the terms of the Minsk agreements and Moscow’s recognition of the breakaway regions of Donetsk and Luhansk.

At the time, Russian President Vladimir Putin announced one objective of the Russian campaign in neighboring Ukraine was what he described as a “special military operation” to “de-Nazify” Ukraine.

Russia has fined several foreign technology companies, mostly American, in recent years over a number of infringements.  

Moscow has restricted access to Twitter, Facebook and Instagram, but Google and its YouTube video hosting service remain available for now, according to Reuters.

Russia particularly objects to YouTube's blockage of Russian media.  

“If one assumed that Google had non-local storage of data on half of Russia's population, then the fine at $260,000 means that this data cost three-tenths of a penny per name, a real bargain. In other words, to Google, the fine is the cost of doing business, and the cost is very, very low,” said New York-based journalist Don DeBar.

“It's quite generous of the Russian government when one considers that RT, Sputnik and most other Russian media has been banned from YouTube and their content is clearly being buried by Google's search engine,” he added.

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The US and its Western allies have stepped up military support for Ukraine, sending a wide array of defensive weapons.

Anton Gorelkin, deputy head of the State Duma committee on information policy, said Google was may not meet the same fate yet.

"Blocking is an extreme measure and YouTube and Google have not crossed this line of reasonableness, but they are involved in the information war against Russia," Gorelkin told reporters at the St Petersburg International Economic Forum.

The court also fined 1.5 million roubles photo-sharing application LikeMe. Google's ability to pay could be hampered as its Russian subsidiary announced plans to file for bankruptcy in May after authorities seized its bank account.  

Gorelkin said the US company could not be a global leader without operations in China and pointed to Yandex (YNDX.O), often referred to as Russia's answer to Google, as a viable competitor.

"I am certain that Google will stay in Russia if it does not cross the line," he said.

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