Russia Faces Astronomical Fine Exceeding Global GDP on Google
"Western Sanctions Response... Symbolic Measure, Not Substantial Punishment"
Russia has imposed an astronomical fine on Google that far exceeds the global Gross Domestic Product (GDP). This is interpreted as political retaliation against big tech companies in response to Western countries' sanctions on Russia. However, analysts say the likelihood of the fine actually being enforced is slim.
According to foreign media including Bloomberg, TASS, and RBC News on the 31st, a Russian court on the 29th imposed a fine of 2 undecillion rubles on Google in a trial over allegations that Google blocked the YouTube channel accounts of pro-government Russian media. An undecillion is 10 to the 36th power, meaning a 1 followed by 36 zeros, also known as gan (澗).
In 2020, following Russia's invasion of Ukraine, Google made the YouTube channel accounts operated by pro-Russian media outlets such as Tsargrad, RIA Novosti, and Rossiya 24 private as part of sanctions. Currently, there are a total of 17 such media outlets.
In response, Russian media companies filed lawsuits against Google, and the litigation lasted for four years. After four years of trials, the court ordered Google to pay a fine of 100,000 rubles (approximately 1.42 million KRW) per day until the accounts are restored, and if Google refuses for a week, the amount should be doubled repeatedly. Additionally, a clause was added stating there is no upper limit to the total fine, causing the fine to balloon to an absurd level.
"With as many as 36 zeros"…More than the combined GDP of the world
According to the court's ruling, the accumulated fine on Google so far amounts to 2 gan rubles, which when converted to dollars equals 200 quindecillion (1 quindecillion is 10 to the 32nd power) dollars. This exceeds the combined GDP of all countries worldwide. According to the International Monetary Fund (IMF), the global GDP is approximately 110 trillion dollars (about 15,170 trillion KRW).
However, since the fine is politically motivated retaliation, there is no real possibility of enforcement. Practically, there is no way for Google to pay the fine. Alphabet, Google's parent company, has a market capitalization of 1.17 trillion dollars (about 1,614.7 trillion KRW). Moreover, after a Russian court froze Google's transaction accounts in 2022, Google filed for bankruptcy of its local Russian subsidiary and has ceased operations there.
The IT industry views this incident as a "symbolic measure rather than an actual punishment." In response to Western sanctions, Russia has introduced new laws in recent years, including laws that expand the jurisdiction of Russian courts over Western companies suing abroad. Assuming that rulings in Western countries are unfair, this opens the door for retaliatory measures.
Bloomberg reported, "Disputes between Russia and Western companies are steadily increasing due to unilateral sanctions," and "Google's situation reflects how the legal system is turning into a battlefield amid escalating geopolitical conflicts."
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