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885 Russian companies join to the lawsuit against Google

Creditors are queuing up to the collapsing Russian legal entity of the American Google – Google LLC: 885 Russian organisations filed applications for inclusion of their claims in the lawsuit. This follows from materials of the commercial case file database. Among the creditors are media companies (FGBU Redaktsia Rossiyskoy Gazety, JSC Mediascop, JSC Rosbusinessconsulting, JSC Kommersant, Shkulev Media LLC, ANO TV Novosti), IТ companies (VK LLC, Docsvision LLC, Skillfactory LLC, Diasoft LLC, Epam Systems LLC, 1S-Bitrix LLC, Netology LLC, Geoscan LLC), etc.

In 2021, the revenue of Google LLC increased by 1.6 times to 134.3 billion roubles, according to the SPARK database. Net losses in 2021 amounted to 26.4 billion roubles against net profit of 1.7 billion roubles in 2020. The Russian company is owned by American Google International LLC. The database contains no data for 2022.

At present, just the register of third-priority creditor claims to Google comprises 66 companies with asserted claims for the total amount of 105 million roubles, according to the latest version of upload from the Casebook case monitoring system. Stated as major creditors are Shkulev Media LLC with asserted claims for 31.2 million roubles and JSC VTB Leasing with the amount of 24.3 million roubles. The Vedomosti sent requests to Shkulev Media LLC and и VTB Leasing.

Most lawsuits are related to a failure to provide advertising services. A source in one of the plaintiff companies interviewed by the Vedomosti reported that it launched context advertising in Google. After Google LLC filed for bankruptcy and suspended provision of advertising services, company already had funds in its personal advertising office, which it is unable to collect, explained the speaker. After that, the company filed a lawsuit, but it has no hope of having the money back. Another company demands repayment of a debt of several million roubles for rendered services for placements of advertisements on platforms, said its representative.

The companies’ claims are associated with a scheme of advance payments under advertising agreements, which Google failed to work off, confirms Head of Litigation and International Arbitration at ART DE LEX Artur Zurabian.

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