Russia fines Google more than the world's entire GDP

Russia has set its sights on Google with a fine so colossal that it defies comprehension. The Kremlin demands more than 2 undecillion rubles from the tech giant, a figure represented by a 2 followed by 36 zeros. Translated into U.S. dollars, this amounts to an astronomical $20 decillion—or approximately $20 billion trillion trillion—far surpassing the total global economy.

For context, the International Monetary Fund estimates the world’s GDP at around $110 trillion, a figure that seems modest when juxtaposed with Google’s fine. Meanwhile, Alphabet, Google’s parent company, holds a market value of approximately $2 trillion.

State media outlet TASS reported that a Russian court has ordered Google to restore access to several pro-Russian YouTube channels that were blocked, many of which have been inaccessible since 2022.

Failure to comply has resulted in accumulating fines that double weekly. Kremlin spokesman Dmitry Peskov, when questioned about this jaw-dropping figure, admitted, “I can’t even pronounce this figure right,” but emphasized that the fine was “filled with symbolism.” He added that Google should refrain from limiting the activities of Russian broadcasters on its platform.

In its latest quarterly earnings report, Google acknowledged the ongoing legal challenges it faces in Russia. “Civil judgments that include compounding penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned parties,” the company stated while expressing confidence that these issues would not significantly impact their earnings.

The tensions between Google and the Russian government escalated following Russia's full-scale invasion of Ukraine, which prompted Google to reduce its operations in the country. However, it has not fully withdrawn, in stark contrast to many other American tech companies.

Despite this, Google’s Russian subsidiary filed for bankruptcy, and the government seized its bank accounts, pausing most commercial activities.

This fine is so immense that even the Kremlin acknowledges its symbolic nature. Speaking to NBC News, Peskov clarified that the fine’s purpose is more about sending a message than expecting immediate compliance. The staggering total is derived from demands made by 17 Russian television channels and other media entities whose content was deemed as pro-Kremlin but has been blocked by YouTube.

The court’s demands for Google to restore these channels are compounded by a fine of 100,000 rubles (approximately $1,000) for each day of continued noncompliance, with penalties doubling every week indefinitely.

This case initially opened in 2020, has expanded significantly since the invasion, leading to a fine that exceeds not only Google’s market cap but also dwarfs the entire global economy.

While the situation remains fluid, some affected Russian media outlets have also sought legal action in countries like Turkey, Hungary, Spain, and South Africa to enforce court rulings against Google. Notably, South Africa’s High Court has already granted a motion to seize Google’s assets within its jurisdiction.

In the wake of these developments, shares of Alphabet saw a slight decrease of 1.2% in premarket trading after a successful quarterly earnings release that pleased investors. The company remains steadfast, maintaining that these legal issues will not have a significant negative impact on its financial health. Google did not respond immediately to inquiries for further comments regarding the ongoing situation.