New law in Russia to prevent big tech monopoly

Moscow – Russia has approved a new law to curb the monopoly of leading IT companies. Under the law, major IT companies will be required to set up separate branches or subsidiaries in Russia. Failure to do so will result in banning or other penal action against the company. This is the second law passed by Russia in the last year to control big tech companies. While enacting the new law, Russia has filed a new complaint against Google and launched an investigation.

The Russian officials have revealed information that Russian President Vladimir Putin has signed the new law. According to the law, a foreign IT company operating in Russia will have to open a branch in Russia and set up an independent office. If it is not possible to open a branch, a Russian subsidiary will have to be established. Opening a separate account and registering on the Russian system Roskomnadzor will also be mandatory. The new law will apply to all companies with more than five lakh subscribers or users, Roskomnadzor said.

It has been warned that companies that do not comply with these provisions will face a ban or other penal action. President Putin has also spoken out in support of the new law during a recent event. ‘The Russian government does not want to block any website or company. We want to work with these companies. But there are also some difficulties. Problems arise when these companies ignore the demands of Russian law or the Russian government,” Putin warned.

Russia has also signalled that it will extend the reach of the IT companies as it enacts new legislation. Russia, on Wednesday, launched a further investigation into Google, a leading IT company. This is the fourth action taken by Russia against leading IT companies. In the past few months, Russia has imposed heavy fines on Twitter, Facebook and TikTok too.

A few years ago, Russian President Vladimir Putin announced the creation of an independent Russian Internet. The ambitious plan was based on the US and Europe’s use of the internet and social media against the Russian regime. The law in this regard was also approved two years ago. Last year, as well as earlier this year, Russia announced that it had successfully tested the Sovereign Russian Internet.

Against this backdrop, Russia’s new law against big IT companies is indeed striking.