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Google Russia

Company

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LLC Google. Representative office of the American company Google in Russia. Google in Russia has two offices – in Moscow and St. Petersburg.

Owners:
Google

Content

Revenue and Net Profit millions Thousand rub

Number of employees
2016 year
200
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Assets

Owners

+ Google Russia
+ NASDAQ

Overview of key products:

Performance Indicators

2017: Growth of revenue by 51% to 45.2 billion rubles

In 2017 revenue of Google in Russia made 45.2 billion rubles, having increased by 51% concerning the 2016th, these systems SPARK-Interfax demonstrate.

These growth rates were the greatest for the last five. At the same time revenue of the main competitor of the company — "Yandex" — according to International Financial Reporting Standards increased by 24% to 94.1 billion rubles.

The net profit of LLC Google, Russian "subsidiary" of Google Internet holding, in 2017 increased by 87% to 5.8 billion rubles. Profit increase from sale turned out almost double — to 6.99 billion rubles.

Revenue of Google grows in Russia twice quicker, than at "Yandex"

In a conversation with RBC the analyst Opening of Broker Timur Nigmatullin connected the growing revenues of Google in Russia with the fact that the volume of the domestic market of contextual and media Internet advertizing increases. In 2017 the market of advertizing began to recover from crisis that affected the company which receives 95% of the revenue from it, he noted.

The senior analyst on telecommunications and media of Raiffeisenbank Sergey Libin agrees that profit and revenue of Google in the Russian Federation increase thanks to Internet advertizing market growth. Growth of a search share of Google in Russia could become one more factor, in particular, due to growth of mobile Internet traffic, Libin considers.

According to LiveInternet service, in January, 2017 the share of Google in the Russian market of Internet search made 38.6%, and in December the indicator reached 43%.

Libin assumes that revenue growth from app store against the background of increase in number of Android devices at the Russian users could also affect growth of revenue. According to the report of App Annie analytical company, totally in app stores (expenses in App Store, Google Play and third-party by Android shops without deduction of the commission of shops were considered) Russians for 2018 spent $580 million[1]

Affiliate program of Google



History

2020

Blocking of the account by the Federal Tax Service

On February 9, 2020 the Moscow Inspectorate of the Federal Tax Service (FTS)  suspended  account transactions Russian representative offices of Google in Citibank. It became known on February 27.

According to data of Bankinform base which informs banks on a status of processing of electronic documents of FTS, "the existing decisions on suspension on the specified taxpayer are absent".

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All will unlock soon, it does not influence operating activities in any way — reported to Interfax the source close to the Russian division of Google.
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FTS blocked the account of the Russian representative office of Google and explained why

According to the Tax Code, suspension of account transactions means the termination by bank of all account operations with this account. Such action is applied to ensuring execution of the decision on collecting a tax, collecting, insurance premiums, a penalty fee and penalties.

According to Kommersant with reference to data of Federal Bailiff Service, concerning LLC Google on September 25 and on November 20 two enforcement proceedings for the total amount of 4.1 thousand rubles are open. One — concerning payment of the state fee awarded by court, the second production belongs to "collectings non-property character not in budgets of the Russian Federation".

At the same time, according to FTS base, the LLC Google has no tax debts exceeding 1000 rub. The Ltd company was registered in 2005.

On February 28, 2020 limits for account transactions of the Russian office Google are lifted. As told RBC in the press service of FTS, the debt of the organization "is settled". The incident was called "a technical error". The Russian press service of the company refused comments.

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Suspensions of account transactions are absent now — said in FTS.[2]
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David Munro Sneddon is the new CEO of the Russian office Google

On February 14, 2020 it became known of David Munro Sneddon's appointment to a post of the CEO of the Russian representative office of Google. Before heading LLC Google, he directed division of Google Technical Solutions in  EMEA region (Europe, the Middle East and  Africa). Read more here.

2019

Google is fined 700 thousand rubles for non-compliance with the Russian legislation

As it became known on July 19, 2019, the Management of Roskomnadzor across Central Federal District considered case of administrative offense concerning Google company. As a result the Google company is fined 700 thousand rubles for non-compliance with the Russian legislation.

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The company did not fulfill the requirement of the law "About Information …" for an exception of results of search issue of links to Internet resources with illegal information, access to which is limited in the territory of Russia. By a control action it is recorded that Google makes selective filtering of search issue — more than a third of links from the unified register of the prohibited information remain searching — Roskomnadzor (RKN) reported.
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According to the Russian legislation, operators of search systems are obliged to exclude from results of search issue of the link to Internet pages with the prohibited information. For this purpose they should be connected to the federal state information system containing a list of such pages. According to Roskomnadzor, these requirements of the law were repeatedly explained to representatives of Google company.

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In this case, as far as I understand, to an information system with the register of the prohibited websites of Google it was connected, but actually did not fulfill the obligation for an exception of issue of the websites specified in it. Ch.2 of Article 13.40 of the Administrative Code provides responsibility for this violation — non-execution by the operator of the search system of an obligation for the termination in the territory of the Russian Federation of issue on requests of users of the specified search system of data on information resources, information and telecommunications networks, access to which is limited in the territory of the Russian Federation in accordance with the legislation of the Russian Federation about information, information technologies and about data protection, attracts imposing of an administrative penalty on citizens in the amount of 3000 rub up to 5000 rub, on officials — from 30 thousand to 50 thousand rubles, on legal entities — from 500 thousand to 700 thousand rubles. Respectively, on each fact of violation the protocol will be formed and to be fined by Google. The law "About Information, Information Technologies and on Data Protection" of 7/27/2006 No. 149-FZ (Article 15.8) does not provide any special sanctions against the operator of the search system for violation of requirements for issue restriction. Respectively, Roskomnadzor will continue to fine. Failure to pay a penalty within 60 days after entry into force of the resolution on its imposing it is fraught with responsibility according to Article 20.25 of the Administrative Code — imposing of a penalty in a double size. It seems to me, there is no sense to appeal: most likely, the evidential base — existence in issue of the prohibited website — obviously points to this offense — the lawyer Alexander Titov to the correspondent of ComNews shared opinion.[3]
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Google began to delete the websites banned in the Russian Federation from search

Google began to delete from search issue of the link to the websites banned in the Russian Federation, including web resources with non-licensed content. The list of such websites, access to which the Russian providers are obliged to limit, conducts Roskomnadzor. The websites with appeals to extremism, promotion of a suicide and containing a pornography get to it, in addition to piracy.

At the same time, as told Vedomosti[4] the source in Roskomnadzor[5], now Google deletes not all links from the register, and about 70% from them. The anonymous source close to Google explained it with the fact that the company studies the bases on which this or that website is recognized prohibited. Besides, Google, unlike "Yandex", was not connected to the register directly, and agreed with Roskomnadzor that the regulator every day prisyl to it the updated list of the websites banned in the Russian Federation.

2018: RKN initiated an administrative case against Google, wrote out a penalty and prepares for blocking of the searcher

Management of Roskomnadzor across Central Federal District initiated in November, 2018 an administrative case against Google company because the searcher does not perform regulation about filtering of information banned in the Russian Federation. It is reported on the website of RKN[6].

As noted in the message, the Russian legislation obliges operators of search systems to exclude from results of search issue of the link to resources with illegal information. For this purpose they should be connected to the federal state information system containing a list of the prohibited Internet resources. However Roskomnadzor established that Google was not connected to this system.

In December Roskomnadzor ordered to pay Google a fine in the amount of 500 thousand rubles for the fact that the company was not connected to the Federal State Information System (FSIS) for the purpose of filtering of search issue as it is provided by the Russian legislation. Writes about it in December TASS with reference to the statement of the head of department Alexander Zharov.

At the same time Zharov said that Roskomnadzor will continue to control performance of the law on filtering of links from Google. Moreover, department intends to begin the following administrative case concerning the company in the nearest future.

Roskomnadzor is ready to consider the possibility of complete blocking in the territory of Russia of a search service of Google if the American corporation will continue to ignore requirements of the Russian legislation. With such message, according to Interfax the deputy head of department [Subbotin Vadim] acted]. Subbotin emphasized that in case of need Roskomnadzor will make all attempts for blocking of Google in the country. Here also entering of the changes into the current legislation allowing to close to search access from the Russian IP addresses belongs.

"Google paid the penalty which is taken out on an administrative case, money arrived into accounts of Roskomnadzor", - the press secretary of department told. At the same time he specified that Google had time for payment of a penalty till February 20, 2019.

2017

Search of the manager on interaction with Russian authorities

At the beginning of June it became known that the companies Google and Facebook opened vacancies of specialists in interaction with Russian authorities[7][8].

Google and Facebook look for interaction specialists with the authorities of the Russian Federation

The Moscow office Google looks for the person who will interact with politicians as a part of the government and beyond its limits and also to advise a command of rather local features of development and promotion of services.

The candidate should have experience of interaction with officials and state structures and also to have capability easy to penetrate into difficult technical and political affairs. Besides, from the applicant wait for excellent analytical and organizational skills, good sense of humour and excellent communicative capabilities.

Facebook offers the candidate work in Warsaw. The applicant for a position should combine "passionate interest in the services similar to Facebook, and deep understanding of political and legislative dynamics in Russia". He will have to notify colleagues on features of the local legislation and its changes which concern work of Facebook, to represent the company at meetings with officials and to develop an official position of a command on these or those public questions.

The applicant should be fluent in Russian and also have excellent English, both written, and colloquial. In addition, experience with politicians and officials of "the highest level" and "passionate belief in public advantage of the Internet and Facebook in particular" is required.

Google paid FAS a fine of 438 million rubles

The Google company paid the fine of 438 million rubles which is ordered to pay by Federal Antimonopoly Service. The penalty, says FAS, was listed on May 9, 2017.

Settlement agreement of Google and FAS. Main thing

The Google company addressed to the Federal Antimonopoly Service (FAS) of Russia with the offer on the conclusion of the settlement agreement. The offer from Google, Larisa Vovkivskaya told the deputy chief of legal department, arrived on February 27[9]. The Federal Antimonopoly Service of the Russian Federation (FAS) and Google corporation announced on April 17 the conclusion of the settlement agreement concerning a dispute. Trial was initiated by "Yandex"; the final agreement will allow the Russian Internet company to advance more actively the services in phones based on Android.

The settlement agreement — the actual victory of "Yandex" and FAS.
Google agreed not only to pay a huge penalty, but also to change agreements with producers. For six years and nine months the corporation will allow vendors to install any applications of the third parties on Android phones and tablets — including on the main screen and by default. In the press release of FAS[10] is also told[11]that Google "abandons claims about exclusivity of the applications on devices based on Android OS". Changes will concern only phones which will be on sale in Russia.

Google will offer the Russian users option.
The corporation signed with "Yandex" the commercial agreement under which phones on Android will suggest users to decide whose search they want to set. At the first start it will be possible to select from new phones whether owes look for the widget fixed in an upper part of the main screen of a system via Google or "Yandex". Other Russian search engines will be able to join this agreement too.

To the acting users will suggest to pass to "Yandex". In Chrome — the browser installed on Android phones by default — the choice window which will suggest to select the search system working by default will appear. Google said that are glad to sign the commercial agreement with "Yandex". "Within the commercial agreement with "Yandex' approved by FAS we will continue to offer our 11 applications (including Google, Chrome and Google Play) as a part of an application package. As well as earlier, the decision on that to pre-install or not our applications on Android smartphones, remains for smartphone manufacturers" — reported to Medusa in the press service of the company[12].

Also within 60 days the interested Russian search engines can address to Google for discussion of possible conditions of inclusion in a choice window in 2018. In connection therewith the solution Mail.Ru Group suggested the company to add Search of Mail.Ru to a window of the choice of the searcher (in particular, in the Google Chrome browser) and also to the corresponding widget on the main Android screen.

2016

FAS fined Google 1 million rubles

The Federal Antimonopoly Service of the Russian Federation attracted Google Inc. and are fined by Google Ireland Limited to the administrative responsibility for non-execution of the instruction, both companies 500 thousand rubles everyone, Prime with reference to the message of department reports. Thus the total amount of a penalty is 1 million rubles.

"The FAS Russia was attracted by Google Inc. and Google Ireland Limited to the administrative responsibility for non-execution of the instruction. Department fined both companies 500 thousand rubles. Earlier the regulator refused to Google prolongation of completion dates of the instruction", the statement says.

FAS in September, 2015 found Google guilty in violation of the law about the competition, in particular, in abuse of a dominant position in the market of the preset app stores of century OS Android.

Completion date of the instruction of Google expired on August 29, FAS gave the companies of 10 days on informing service on execution of requirements. The company asked to prolong completion date of the instruction, but the service rejected this application. As noted FULL FACE earlier, Google can threaten a penalty in the amount up to 500 thousand rubles for failure to follow the instruction in time.

FAS fined Google almost half a billion rubles

FAS made the decision concerning Google on the case of restriction of the competition in the market of mobile software, opened at the beginning of 2015 according to the complaint of "Yandex". The company is fined 438 million rub[13].

The representative of the press service of department Anna Orlova refused to specify from what amount the penalty size was calculated, having referred to a trade secret. Earlier the head of the FAS Igor Artemyev warned that the amount of a penalty for Google can be up to 7% of revenue of the company received in the market where violation was made. FAS defined it as the market of the preset app stores in Russia. If the antimonopoly service did not change the decision on the penalty size since then, then revenue of the American corporation from Google Play in Russia can make 6.3 billion rubles. Google does not open financial performance on separate segments and the countries.

Case of violation of the competition concerning Google was open in February, 2015 according to the complaint of the main Russian competitor of corporation — Yandex Company. Representatives of "Yandex" claimed that they faced restrictions from a number of mobile device manufacturers (Explay, Fly, etc.): in particular, they terminated agreements on preset of mobile applications. Producers referred to contract restrictions from Google, said in "Yandex".

The adviser to the president Klimenko Herman Sergeyevich told that in the USA there is a practice when for the large Internet companies and owners the judge just determines a certain amount of a daily penalty before violation elimination. "For Google it is small amounts, it incurs much bigger costs for the world, the same patent wars. The amount is less than $10 million for Google absolutely insignificant".

2015

Data, than Russia asked Google to open U.S. authorities 50 times more often

Google published statistics of requests for disclosure of the user information for July —[14] December, 2015]. For the reporting period state bodies from around the world sent the Internet companies of 40,677 requests which concerned 81,311 user accounts that is 18% more, than was recorded the previous year, but only 64% of addresses were satisfied. In 2014 representatives of the authorities demanded disclosure of information concerning 68,908 users.

The main part of requests arrived from the USA whose state agencies made 12,523 request concerning confidential data of 27,157 accounts at the same time for 79% of the power from them received the satisfactory answer. The second place in the list was taken by Germany from where 7,491 requests concerning 11,562 users came. In comparison with North American colleagues the German services are less effective, only 57% of addresses received the informative answer. The Russian authorities sent only 257 requests concerning 433 users, but only 7% of addresses led to disclosure of data.

In the report it is also said that the amount of requests steadily grows every year. Representatives of Google company connect it with growth of popularity of the services and increase in number of users.

Share in search - 34.9%

According to data of LiveInternet for June, 2015, the competitor's share - "Yandex", in the Russian market of search made 56.7% (61.1% the previous year), Google — 34.9% (29.1% respectively).

To searchers suggested to pay the Russian media for news

To legislatively oblige search systems to pay remuneration for use of materials of electronic media offered[15] the Commission chairman of the Public Chamber (PC) on development of information society, media and mass communications Dmitry Biryukov. According to him, almost in all European countries there are similar bills or laws.

According to them if the searcher publishes any information from the magazine or the newspaper, then he pays to the corresponding edition the fixed remuneration. This regulation, according to Biryukov, will allow to receive to the Russian media a necessary amount of money which they could direct to financing of a subscription or retail. The member of Public Chamber gave Spain where since 2015 such law works as an example.

Information that similar regulation exists in all European Union countries is not right. Yes, a part from the countries adopted similar laws, but only a part and that, smaller. About the all-European nature of regulation of the speech does not go yet though attempts such exist. Secondly, those who decided to punish "bad Google" already strongly regretted about it. In that Spain News Google service in general was closed that, undoubtedly, "pleased" the Spanish media which lost a considerable share of traffic. In Belgium publishers preferred to go to world after by a court decision Google deleted mentioning of dissatisfied media from all the services, including search issue.

In Germany in a similar situation were forced to display Google from under operation of the law because of sharp falling of attendance of newspapers. Generally, nothing good left the idea: instead of trillions there arrived publishers is expected received millions of losses. Undoubtedly, just the same situation will be also in Russia in case of adoption of such law. "Yandex" which the American search engine though restricts will suffer first of all, but cannot remove on the second place[16] yet[17].

Google is guilty of violation of the Russian legislation. "Yandex" won

The Russian antimonopoly authority recognized Google of fair competition, guilty of an obstacle, in the market of mobile phones in Russia. The company is threatened by a penalty. The complaint was put forward by Yandex Company in February, 2015[18].

Recognition of fault of Google

The Federal Antimonopoly Service (FAS) of Russia recognized the American corporation Google and its Irish representative office Google Ireland guilty of violation of part one of Article 10 of the law "About Protection of the Competition". The head of department of information technologies of FAS Vladimir Kudryavtsev told about this CNews.

Article provides imposing of a turnover fine in the amount of 1-15% of revenue of the company for the last year in the market in which violation is made. "The decision and the instruction on the termination of abuse of a dominant position will be made within 10 working days and sent to the parties" — the representative of FAS told.

The publication of the solution is expected no later than September 28, 2015. Most likely, owing to the volume exceeding 200 volumes and because of references of a trade secret, perhaps, it will be published not completely. After the publication of the solution the parties will have two months on its appeal judicially. The representative of Google Svetlana Anurova reported to CNews that the company will study the FAS decision when receives it.

Violation essence

As Vladimir Kudryavtsev told CNews, the set of conditions under which the Google company provided for preset on devices Google Play shop" — online store through which applications for the devices working running Android extend was recognized violation of Google ".

According to Kudryavtsev, on listenings it became clear that among conditions on which access to Google Play was provided to Android devices producers there was a preset of other applications and services created by Google on exclusive places, use in searchers by default Google and prohibition to producers on installation of products, "created by some other companies".

According to Kudryavtsev, "90% of case papers are a trade secret of either "Yandex", or Google" and therefore a half of time of listenings passed behind closed doors: "when the mysteries of "Yandex" were disclosed, from the hall representatives of Google when the mysteries of Google were disclosed left, "Yandex" was removed.

Why "Yandex" began war against Google

With gain of the competition on mobile devices falling of the share in the Russian market of Internet search explains "Yandex", noting importance of the presence at a mobile segment.

In November, 2014 (when the share of "Yandex" in the Russian market of search fell up to 59.5% according to Liveinternet) representatives of "Yandex" said that independent installation by users of "Yandex" search by default helps to hold a share on Android in 47%. On given by "Yandex" this, at that time 86% of the mobile devices sold in Russia and more than 84% in the world fell to the share of Android.

"Yandex" could calculate that the release of own version of Android under the name " Yandex.Keith " will strengthen his positions on mobile devices, but faced manufacturing Android prohibition from Google on installation of products, "created by some other companies". Prohibition had to strike plans of the Russian search engine seriously.

Google is fined for reading correspondence of the Russian in Gmail

The Moscow City Court obliged the Russian representative office of Google to pay one thousand p50 to the resident of Yekaterinburg Anton Burkov for violation of the right to the mystery of correspondence, Interfax with reference to the press service of court reports.

Earlier, on April 21, 2015, Zamoskvoretsky Court of Moscow rejected the claim of Burkov who complained of the American company for violation of the right to a personal secret and the mystery of correspondence.

"The court changed court's decision of the first instance and decided to collect one thousand from the defendant of p50", - the representative of Moscow City Court reported Interfax.

Earlier the employee of the Russian office Google said that for Gmail service a defendant is the Google company in the USA therefore a claim needs to make it[19].

Google closed the development center in St. Petersburg

The Google company closed the development center in St. Petersburg. The press service of the Russian representative office of the Internet company reported that it is "about normal process of optimization"[20].

Optimization, emphasized in Google, takes place not only in the Russian Federation, but also, for example, in Finland, Sweden, the USA. On a question of the fate of employees of the closed development center assured of the company that they "continue to work on projects at other offices (Google)".

In turn the head of commercial real estate of the international consulting company Knight Frank Saint-Petersburg Marina Puzanova told TASS that the development center of Google left office in St. Petersburg in August. "Took out employees to the different countries: Switzerland, America and Germany" — Puzanova told.

How many people worked in the Google center in St. Petersburg, are not specified. The representative of Knight Frank Saint-Petersburg said only that the development center occupied two floors of the office building.

Blocking of money of partners of advertizing network AdSense in the Crimea

The Google corporation closed accounts of users of advertizing network AdSense in the Crimea and blocked withdrawal of funds from accounts in a system, RIA Novosti reports in January, 2015. Users were informed on changes by means of mailing. In the letter to users of Google AdSense it is said that Google blocked accounts of the users registered in the territory of the Crimea and will not be able to provide them unpaid funds from their[21].

This step was taken according to the decree on imposing sanctions against the Crimea which was signed on December 19, 2014 by the U.S. President Barack Obama. According to the decree (PDF), the American companies it is forbidden to export the products and technologies on the peninsula and also to render services to users in the Crimea. AdSense — the advertizing network Google allowing to post contextual text and graphic advertisements on the websites entering into network and also on own website of the declaration of other users, receiving for it money. Service was started in 2003.

In addition to AdSense, restrictions will concern AdWords service (advertizing in search results of Google), TASS with reference to a source in Google reports. Besides, since February 1, 2015 the corporation will close access to the Crimean users to shop of the Android-applications Google Play. "Access will remain to free services of Google, such as search, the Gmail mail and cartographic service" — added to the companies.

2014

Revenue of 18 billion rub (+22.4%)

Revenue of LLC Google grew in 2014 by 22.4%, in comparison with 2013, up to 18 billion rubles from 14.7 billion rubles, mass media with reference to SPARK-Interfax base reported. The net profit of the company increased by 4.7%, up to 1.56 billion rubles. The sales profit increased by 7.3%, to 2 billion rub[22].

Google by the end of 2014 reached in the Russian market of a maximum of number of search queries in 33.6% while at the end of last year the share of service made only 32.1%. Experts note that growth of indicators by 1.5% happened at the expense of the Yandex search service which for the same time frame lost 1.2% and stopped on a mark of 58.1% of a total quantity of requests in network. In turn it is also noted that falling of indicators of "Yandex" as the number of the users using the search system from personal computers at work at simultaneous increase in a share of requests from mobile devices where positions of Google are traditionally strong is reduced is traditional for long holidays.

The considerable share of users of mobile devices based on Android performs search through a Google service. In turn the representation of Android in Runet constantly increases, and by the end of the 2014th year reached 34.6% that is 11.9% more than indicators of year prescription. The number of devices based on the operating system from Google company and in general on the market increases. So, the number of smartphones and tablets based on OS Android is 83% and 89% respectively.

According to StatCounter service for November, 2014, Google controls more than a half (50.88%) of the Russian market of Internet search (taking into account traffic from computers, smartphones and tablets). Since May when the share made 55.82%, it steadily decreases. The main competitor of "Yandex", on the contrary, strengthens the positions: according to the results of the last spring month 2014 the share of the searcher equaled 36.2%, and later six month it rose up to 40.45%.

According to the statistics of LiveInternet.ru for the third quarter 2014, 60% of requests of Russians in search systems fall to the share of "Yandex". An indicator of Google — 31%.

Requests for registration of four trademarks

In August, 2014 it became known that Google Inc company. submitted applications for registration of four trademarks to Rospatent, the RAPSI with reference to materials of patent authority reports.

The applicant asks to register on himself as trademarks of designation:

  • Barely political,
  • Indy mogul,
  • Key of awesome и
  • [23].

According to the procedure, after application for registration of brands within a month the patent authority carries out expertize of the trademark. Then examination of the stated designation which has no temporary restrictions follows. On average, according to the experts, from the moment of application before registration issue (in case of adoption of the positive solution) there passes about a year.

Google brings technical service out of Russia

On December 12, 2014 the American mass media reported that Google is going to bring technical services out of Russia. This step, according to sources of Bloomberg, is connected with the forthcoming entry into force of the law on data storage.[24]

The Financial Times edition writes that the staff of developers at the Russian office Google totals about 100 people, many of which work in Moscow. The company intends to transfer them to the representations in other countries, the newspaper claims.[25]

"We have big obligations to our Russian users and clients. For their support we have a special command in Russia" — told in Google to the Bloomberg agency.

It is noted that without watching closing in Russia of technical department of Google is going to increase investments into local business operations in 2015. The company took earlier similar steps in Sweden, Finland and Norway.

Google brings technical service out of Russia

It was initially supposed that the law obliging Russians to store the personal information in the territory of Russia will become effective on September 1, 2016. In September, 2014 deputies approved in the second reading  the amendment proposed by committee on information policy according to which prohibition on placement of data abroad will begin to work since January 1, 2015. As of December 12, 2014 the third reading did not take place yet therefore still obligatory date of the introduction of the law in force is on September 1, 2016.

Google signed the agreement with the Security Service of Ukraine (SSU)

The Google corporation in connection with events in Ukraine fell under suspicion of the Russian officials. They believe that, within security of the country, for work in the territory of Russia the American Internet company should create full-fledged affiliated enterprise.

The intentions to send to the Prosecutor General's Office of the Russian Federation an inquiry for check of activity of Google during the conference in IIA Russia Today in September, 2014 were expressed by the deputy of the State Duma Evgeny Fedorov. According to him, Google signed the agreement with the Security Service of Ukraine (SSU) on providing these Russian users to the Ukrainian intelligence agency and also supports activity of the anti-Russian elements in the territory of this country.

Evgeny Fedorov considers that within security of the country it is necessary that Google regarding Russia passed into the Russian jurisdiction and competence over time. "Terms of nationalization of Google, we hope, - the beginning of 2014. These are soft methods: transfer to a national jurisdiciton - if you want, "forced deoffshorization", - he told.

The press service of Google did not begin to comment on such statement of the deputy.

"We can voluntarily provide data of users on requests of foreign government agencies within the operating legal procedures if these requests meet the international precepts of law, the legislation of the USA and the requesting country and also rules of the company", - the representative of the press service of Google explained to the reporter of ComNews.

2013

League of the safe Internet: Google threatens digital sovereignty of Russia

In September, 2013 "The league of the safe Internet came to a conclusion that the Google company consciously conducts work on influence on internal political affairs of Russia and also on promotion of the products among the Russian citizens and officials which purpose is easing of the Russian electronic sovereignty. This output contains in the official appeal to the Deputy Prime Minister of Russia Dmitry Rogozin sent by League this week", – the chief executive of League of the safe Internet Davydov Denis said in September, 2013, having confirmed information on the letter to the government which appeared in a number of media.

Ignoring of requirements of the Russian legislation

Formally the Google company has no representation in the Russian Federation. She is registered in the State of California (USA) and respectively submits to the American laws, ignoring regulations of the Russian Federation. So, summer of 2013 of Google refused to perform requirements of Roskomnadzor and to notify on personal data processing of the citizens of the Russian Federation using a mail service of Gmail. The fact that at registration users adopt the agreement providing that information on them is provided to the third parties "with the consent of the user" and also in "other cases" (i.e. without the consent of the user), for the purpose of personal data processing by the third parties, in case of requirements of the legislation was given as justification. In this case the speech about the American legislation to which will obey to Google, and which in this part contradicts the Russian Federal Law "About Personal Data".

Besides, Google extremely not willingly performs requirements of law No. 139-FZ on illegal content and in certain cases out of time deletes it from the resources. And Google services of Translate and Google Mobilizer allow to get "alternate path" access to all information on the website from the register of the prohibited websites, including images and video files. At the same time formally the law is not broken as the websites open not directly, and after processing by means of Google and on own website of Google.

Active cooperation with intelligence agencies of the USA

Since 1999 Google provides easy access to the servers to the U.S. National Security Agency (NSA), and since 2007 – participates in the program of the U.S. NSA Prism allowing to watch Internet traffic of foreign users of some resources (to browse e-mail, to listen to voice and video chats, to watch photos, video, to trace the sent files).

Besides, universal distribution of mobile devices with the Android operating system from Google, will also provide access of intelligence agencies of the USA to data of users of such devices worldwide: all new mobile phones, tablets, TVs, cars and other devices on Android will include a patch set ("patches), developed by the NSA, allowing a message strict control of the applications transferring data to the Internet and if necessary to isolate them.

Imposing of cooperation with authorities and population

Having close ties with intelligence agencies of the USA and not pochinyayas to acts of the Russian Federation, Google, on the other hand, actively promotes the products among officials and the population of the Russian Federation. So, for example, the head office Google regularly employs interaction specialists with authorities in Russia, openly declaring the interests of the company on the social and political arena of the country. As a result, it is already stated intention of Google and Open Government of the Russian Federation to cooperate "in the field of open data, development of the training programs for Russian regions for effective use of mechanisms of an open state administration".

Specialists of the company actively participate in work of special-purpose committee of the Federation Council on formation of Strategy of cybernetic security.

Deputies of the State Duma, members of the Federation Council, employees of federal and regional public authorities regularly meet representatives of Google and at the initiative of Google for discussion of different questions, including for promotion of the approaches to questions of information security, personal data protection, regulation of network.

Work is conducted also with the population. Specialists of Google regularly provide training of citizens of the Russian Federation in Internet technologies, placing emphases on own services.

Counteraction to regulation of the Internet

In 2012 the Google company opened the special page on the website on which collects signatures in "support of the free and open Internet". The page was created after attempt of a number of the countries, including Russia, to change the principles of network functioning that it was controlled not the American authorities as it happens now, and the international organizations at the level of the UN jointly, to involvement of many states.

Also from 2007 to 2012 Google sponsored creation of TORUS andernet-network (www.torproject.org) intended for enciphering of transmitted data and concealment of the IP addresses of users. As a result in transport hubs of network of the message cannot be read and users of this network can exchange content including prohibited in the territory of the certain countries. TOR network is notorious for large-scale distribution of a child pornography and is "haven" for cybercriminals, dealers in weapon and drugs.

2012: Share in search queries of 26.6%

2011

Revenue of 6.8 billion rub (+80%)

Revenue of the Russian subsidiary company Google — LLC Google increased in comparison with an indicator of previous year by 80% and made 6.8 billion rubles. Such data are provided to reportings of the company published in the database SPARK-Interfax. Net profit increased by 70% and reached 633.6 million rubles, Vedomosti reported in July, 2012.

In 2011 the share of Google in number of search queries of Runet grew, and generally at the expense of the main competitor of the company – "Yandex". On counter data of Internet statistics of Liveinternet.ru, in 2011 the share of Google grew to 25.9%, and "Yandex" — was reduced to 59.6%.

Revenue of "Yandex" in 2011 grew by 61.8% up to 21.3 billion rubles, and net profit — for 46% up to 6.56 billion rubles, reports SPARK-Interfax. These indicators are a little lower, than at Google.

It would seem, Google grows in Russia quicker than "Yandex", but directly it is impossible to compare them on this indicator because of presence at Google of income from the parent American company.

At the same time profitability of the Russian LLC Google on net profit last year appeared 10 times less than at "Yandex" — 9.3% and 30.8% respectively. The analyst of Troika Dialog Anna Lepetukhina believes that higher, than at "Yandex", costs for promotion of the products and services in Russia could become the reason.

Google transfers data of users on all requests of intelligence agencies of the USA and completely refuses to Russia

In October, 2011 it became known that in day when on the Internet letters from a mailbox of Alexei Navalny on Gmail.com were published, the owner of this service the Google company published statistics of cooperation with the authorities of the different countries. For the first half of 2011 of Russia 42 requests about these 47 users arrived. Any of them was not satisfied. U.S. authorities sent Google 5950 inquiries for 11,057 users. The company transferred required data to 93% of cases.

The letters published on the Internet, allegedly from a mailbox of Navalny are dated including 2011. For the first half of 2011 of Google as appears from the data published by the company, did not satisfy any request of the Russian law enforcement agencies. Possibly, data are got via other channels, for example through Internet service providers. Let's remind that information on the funds raised by Navalny for the project RosPil fell into inadequate hands after Yandex.Money company provided them to law enforcement agencies in response to official requests.

File:Ответы Google на запросы правоохранительных органов 2011.jpg

Most often Google executed requests of law enforcement authorities of the USA, Japan and Brazil, is the most rare — at all did not execute — from Russia and Turkey. Data on China are not provided, but requests from Hong Kong controlled by China are executed in 42% of cases.

2010: Start of sales of video advertizing on YouTube

In August, 2010 it became known that Google begins sale of the Russian video advertizing on the video hosting of YouTube. Market participants consider that the project will be successful: Youtube is the large platform, and advertizing on normal TV is until the end of the year almost redeemed.

Google brought to the Russian market a new format of advertizing — videos on a video hosting of YouTube, told a source in the media company and the head of the Russian office Google Vladimir Dolgov confirmed. According to the first, in the middle of July, 2010 on the YouTube portal there took place the test campaign: Google offered advertisers 7 million demonstrations of a roller for 275,000 rub So 1000 demonstrations cost 39.3 rub that unprecedentedly it is not enough, the interlocutor of Vedomosti says. The CEO of AdWatch advertizing agency Andrey Chernyshov agrees with it. The video hosting of Rutube takes for one thousand demonstrations of a roller 10 times more — 510-900 rub.

Does not comment on debts of the price of a test advertizing campaign, and full start of a new advertizing format promises in an early autumn of 2010. According to Dolgov, the Russian office Google develops new model of sales of similar advertizing: its cost will not depend on the number of demonstrations, it will be the fixed price for each day of placement of an advertizing filmlet on the homepage of YouTube. What will be this price, he does not speak. Youtube sells video advertizing about two years, adds Debts, in Russia the project was delayed because of problems with payment acceptance. Now Google configured billing for Russia and advertisers and the agencies will be able to buy advertizing on Youtube directly from the Russian office, paying it in rubles, Dolgov promises.

Earlier Russian-language advertizing on Youtube was bought by advertisers under global contracts or the European representative offices of advertizing agencies, the CEO of Mindshare Interaction advertizing agency Dmitry Ashmanov says. He is sure: Youtube will be popular among advertisers, "all wanted to accommodate there long ago".

The total amount of the market of video advertizing in Runet in 2009 doubled up to 300 million rubles, Rutube considers. This company does not estimate a share of YouTube, and the is considered by equal 21% (63 million rubles).

Start of a new format and opportunity to pay in rubles will increase demand for advertizing for Youtube and will attract advertisers from Russia, Dolgov hopes. Long ago waited for multinational companies when Google begins to sell in Russia video advertizing on Youtube, the commercial director of Rutube Alexander Hudoley agrees. But success will depend on efficiency and the volume of audience of a new format and also on ability of Google to sell media advertizing, he believes, she specializes in context. Video advertizing on Youtube is effective, Chernyshov from AdWatch considers, this website is initially expected watching video. And now, when TV spots are until the end of the year almost redeemed, Youtube can expect arrival of large advertisers, he adds.

2009

Agreement with Mail.ru Group

At the end of 2009 Mail.ru Group signed the agreement on replacement of search on the portal from "Yandex" on Google, but really this search earned only in the second half of 2010. According to Chernitskaya (the CEO of iContext advertizing agency), Google which needs increase in a market share in Russia gives Mail.ru Group of nearly 100% of income from contextual advertizing on pages of the portal.

Financial Results of year: revenue of +57% (2.2 billion rub)

The world's largest search engine Google earns in Russia almost one quarter of "Yandex" of nearly 1.5 times less Mail.ru. It follows from the reporting published by its Russian "subsidiary" — LLC Google.

In the reporting of Google indicators of regional divisions of corporation traditionally do not reveal. But the other day in base of SPARK-Interfax the reporting of Russian "subsidiary" of Google — LLC Google — according to the Russian standards (RAS) was published. Proceeding from these data revenue of the Russian Google in 2009 grew in comparison with previous year by 57% and made 2.2 billion rubles ($69.3 million), and net profit — by 4.5 times, having made 126.7 million rubles ($4 million). Earlier the reporting of LLC Google was not published in open access.

In Russia Google second: its share by the number of the accepted search queries is 2.9 times less, than at "Yandex". And on revenue if to compare it to revenues of LLC Yandex, the Russian Google concedes to the competitor even more — by 4.2 times ("Yandex" earned last year 9.3 billion rubles under RAS).

On this indicator the LLC Google conceded even to Mail.ru which share in the Russian search is three times less, than at Google. Last year's revenue of Mail.ru — even without game business of Astrum Online Entertainment purchased at the end of 2009 — was 30% higher, than at Google. However, income items at these two companies different. Google earns generally from sale of contextual advertizing in search results (in 2009 advertizing earnings provided 97% of its revenue worldwide), and Mail.ru — first of all on media advertizing (banners) and paid services.

Judging by the reporting of LLC Google, its operating margin in 2009 could make about 16%, the analyst of Troika Dialog Anna Lepetukhina says; it is very modest indicator for the Internet company. The chairman of the board of Finam Vladislav Kochetkov agrees with Lepetukhina: for example, at "Yandex" operating margin in 2009 made 28.8%, he considered, proceeding from the reporting of the company under RAS. SPARK-Interfax estimates this indicator at "Yandex" even above — at 35.7% for last year (and in 2008 it was 8.1 items more). Operating margin of Google in general made in 2009, according to corporation, 36%.

Payments of the company to partners on whose platforms a part of the sold Google of advertizing is placed are not reflected in the Russian reporting of LLC Google in any way, notices Lepetukhin. She considers that these assignments should be included in "cost value of the sold goods, products, services", made 1.5 billion rubles according to the results of last year. Global Google last year gave to partner platforms 31% of advertizing revenues; if in Russia the same proportion, then the Russian websites worked — partners of Google last year theoretically could earn about 680 million rubles.

2006: Opening of development centers in Moscow and St. Petersburg

The development center of Google opened in St. Petersburg in the fall of 2006. It became the second development center of this Internet company in Russia. Earlier the same year the development center of Google was open in Moscow.

Notes

  1. Google twice overtook "Yandex" on growth rate of income in Russia
  2. source=yxnews&utm medium=desktop&utm referrer=https%3A%2F%2Fyandex.ru%2Fnews of FTS announced settlement of debt on accounts of LLC Google
  3. Google received a penalty
  4. of Google
  5. began to delete from search the websites banned in the Russian Federation
  6. the protocol on administrative offense concerning Google Is made
  7. of#!t=jo&jid=/google/public-policy-and-government-relations-balchug-plaza-ul-balchug-7-moskva-russia-2614160178& Public Policy and Government Relations Manager Public Policy Manager
  8. , Russia
  9. Google suggested FAS to sign the settlement agreement
  10. [http://fas.gov.ru/press-center/news/detail.html?id=49773 the FAS Russia
  11. signed the settlement agreement with Google ]
  12. the Settlement agreement of Google and FAS. The main thing to Users of Android will be suggested to be selected between search of Google and "Yandex"
  13. of RBC: FAS fined Google almost half a billion rubles
  14. [https://life.ru/t/%D1%82%D0%B5%D1%85%D0%BD%D0%BE%D0%BB%D0%BE%D0%B3%D0%B8%D0%B8/879862/vlasti_ssha_v_50_raz_chashchie_prosili_google_raskryt_dannyie_chiem_rossiia U.S. authorities 50 times more often data, than Russia asked Google to open
  15. Vedomosti: To searchers suggested to pay the Russian media for news
  16. [http://nag.ru/news/newsline/27042/-nalog-na-google-hotyat-vvesti-v-rossii.html "A tax on Google"
  17. want to impose in Russia]
  18. Officially: Google is guilty of violation of the Russian legislation. "Yandex" won
  19. CNews: Google is fined for reading correspondence of the Russian in Gmail
  20. Google closed the development center in St. Petersburg
  21. Google account blocked money of the users in the Crimea
  22. Revenue of Google in Russia in 2014 grew by 22%, "Yandex" — for 27%
  23. Threadbanger Google Inc. asks Rospatent to register 4 brands
  24. Google Said to Transfer Engineering Operations Out of Russia
  25. Google shuts Russia engineering office