Alphabet Inc (NASDAQ:GOOGL) Fails To Convince Russian Court

Alphabet Inc (NASDAQ:GOOGL) Fails To Convince Russian Court

Alphabet Inc (NASDAQ:GOOGL) could not convince the Russian Arbitration Court on its appeal against a court ruling that the search engine giant broke antitrust laws in Russia. As a result, its plea to dismiss the court order was rejected and the earlier order upheld. The country’s regulator, the Federal Antimonopoly Service, charged the company with taking advantage of its dominant position with the help of its Android mobile platform.

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Laws Broken By Buying Some Apps

In the last year, the antitrust regulator of Russia gave its ruling that Alphabet (NASDAQ:GOOGL) had broken the country’s law by asking buyers to buy some pre-installed apps on mobile devices that run on Android OS. Yandex NV (NASDAQ:YNDX) filed a complaint with the regulator against the company.

In its complaint, Yandex accused Alphabet of using its power over the Android OS, which is also the market leader in Russia, to deny its rivals its other services like mail, maps, and streaming. Alphabet also faced a similar complaint in the European Commission’s current probe. Alphabet was accused by its competitors in the EU region of committing the same offence. American tech firms often come under scrutiny in the region for one reason or another.

Amend Its Contracts

Following the regulator’s order, Alphabet filed an appeal before the arbitration court in September last year. On Monday, the court fully supported the decision of the antitrust regulator. As a result, it would have to obey the order issued by the regulator earlier.

That meant Alphabet would have to alter its contracts with the makers of their smartphone. This would enable it to comply with the ruling. The search engine giant would also be required to pay a fine for its past violation.