Google faces deadline to correct contracts with phone manufacturers in Russia

The Russian Federal Antimonopoly Service (FAS) said yesterday that internet giant Google has until 18 November to address charges that it has been abusing its dominant position in the market and alter its contracts with mobile phone manufacturers.

The FAS ruled in September that Google had broken the law by pre-installing certain applications on mobile devices. The case was launched by Russian competitor Yandex, the current market leader in the country. Yandex has faced increasing competition as consumers have adopted Android devices, which come pre-loaded with Google products that compete directly with Yandex applications.

“Our goal is to return fair play to the market,” Yandex said in a statement. “Our position is strong and we intend to defend it in case of appeal at any level. This view is shared by a number of companies outside of Russia.”

Google has until 18 November to change the relevant contract provisions with smartphone producers. If the company does not comply with the demands of the FAS, it could face penalties of up to 15% of its 2014 income from mobile phone applications within Russia.

Source: Reuters