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Yandex Expects a Fine of $60 Million from Russian Regulator

August 30, 2021, 15:17 (UTC+3)|

Russian tech giant Yandex estimated the potential amount it will have to spend on regulatory issues at $60.5 million (4.3 billion rubles). This includes an administrative case launched by the Federal Antimonopoly Service (FAS) on promoting the company's own services at the expense of other companies.

The case involves the Yandex' search widgets that the regulatory body considers discriminatory towards other online businesses. The maximum amount of the fine could be up to 15% of the company's annual revenue in the relevant market, Yandex clarified.

Last year, in the Search and Portal segment, the company’s revenue amounted to $1.6 billion (124.3 billion rubles), with 15% of it being $253 million (18.65 billion rubles). However, this amount includes revenue not only from advertising in search service, but from advertising on the sites of partners, including foreign ones, as well.

Yandex also estimates other legal costs, which include employment claims, data and confidentiality issues, compensation in connection with car accidents in the Taxi segment, etc., at $45.2 million (3.2 billion rubles). However, the company does not acknowledge liability in relation to these claims.

Since 2020, the FAS has been considering complaints from a number of Internet sites against Yandex’ search widgets that allow Yandex to take a dominant position in the market through advertising its services. As a result, the regulator first issued a warning to the search engine, and then opened a case on violation of the Law "On Protection of Competition". The next hearing on the case is to take place on September 23.

Original (in Russian)


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