Russian antimonopoly authorities allege Google LLC violated investment ad rules
Russia’s Federal Antimonopoly Service (FAS) today announces that it has found Google LLC in breach of the Law on Advertising.
The reason behind the regulatory determination is that google.com was showing an ad of unauthorized broker Rypex trading limited. The ad in question was displayed in August 2020. FAS notes that Rypex lacks the necessary license to advertise its investment services in Russia. Hence, the distribution of the ads has to stop.
FAS has already issued an order to Google LLC regarding this ad. The regulator has also launched administrative proceedings which may lead to a fine of up to RUB 500,000 for Google LLC.
Last week, the Moscow division of Russia’s Federal Antimonopoly Service (FAS) also found tGoogle LLC in breach of the Law on Advertising. During an investigation, FAS found that Google LLC was distributing ads of foreign firms active in the Forex market.
In particular, Google Adwords was distributing advertisements of RoboForex and Just2Trade Online Ltd. These two firms do not have Forex dealer licenses issued by the Central Bank of Russia or any other financial licenses issued by the Russian central bank, FAS explains. Due to this, their services cannot be advertised in Russia.
There are only four licensed retail Forex brokers in Russia at present: PSB-Forex, FINAM Forex, Alfa-Forex, and VTB Forex. To operate legally in Russia, a retail FX broker needs a Forex dealer license issued by the Central bank of Russia. To secure such a license, however, a broker has to comply with stringent requirements in terms of capital, software, etc. Only licensed Forex firms may advertise Forex services in Russia.