A PYMNTS Company

Russian Lawmakers OK Harsher Fines For Foreign Tech

By  |  July 5, 2022

Russian lawmakers on Tuesday approved a bill providing for stricter penalties for foreign internet companies that fail to open an office in Russia, including fines.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Moscow has long sought to exert greater control over technology firms, and disputes over content and data have intensified since it sent armed forces into Ukraine on Feb. 24.

    Foreign social media giants with more than 500,000 daily users have been obliged since July 1, 2021, to open offices in Russia or risk penalties ranging up to outright bans.
    Now, the turnover fines that Russia has imposed on the likes of Google and Meta for hosting banned content could be applied to companies that fail to open offices, after the lower house passed the bill in the second of three readings.

    Fines could be as high as 10% of a company’s turnover in Russia from the previous year, rising to up to 20% for repeat violations.

    The state communications regulator Roskomnadzor last November listed 13 mostly US companies required to set up on Russian soil by the end of the year.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.