Russia fines four Western companies for not storing data locally

[Tudor Cibean]

What just happened? Russia reportedly fined Airbnb, Pinterest, UPS, and Twitch for not storing data they collected from Russian users on servers located within its borders. The same law led to the country completely blocking LinkedIn several years ago.

According to a new report, a Moscow court has fined several Western companies for refusing to store personal data collected from Russian citizens on servers located in the country.

Airbnb, Pinterest, and Twitch have reportedly been fined 2 million roubles ($38,113) each, with UPS receiving a 1 million rouble ($19,057) fine. These sums sound a bit ludicrous considering that all of these companies reported multi-billion dollar revenues last year.

Russia's data localization law entered into effect in 2015, mandating that any tech company operating in the country store all data on Russian users on local servers.

It's not the first time fines have been handed down to companies due to this law. In 2021, Russian authorities fined WhatsApp 4 million rubles ($53,880 at the time), Facebook 15 million rubles ($201,975), and Twitter 17 million rubles ($290,444). In 2016, the social network LinkedIn got banned within the country for violating the same law.

Roskomnadzor, Russia's communications regulator, announced last month that it had also opened a case against Apple. The company faces a fine of up to 6 million roubles as this would only be its first offense.

Convincing companies to store user data on servers within Russia might prove to be a challenging task, especially considering the sanctions the country is facing. IBM and Microsoft have been laying off most of their employees in Russia, with the latter even blocking users in the region from downloading Windows from its website.

Permalink to story.

https://www.techspot.com/news/95137-russia-fines-four-western-companies-not-storing-data.html

 

[Hexic]

Oh no.

Please don't.

We're in trouble now.

 

[Tantor]

This is like a cop letting you go with a warning. If it's important for Russian government, clearly they'll come down harder next time.

 

[McMurdeR]

This is like a cop letting you go with a warning. If it's important for Russian government, clearly they'll come down harder next time.

The Russian government. A cop. That's a good one!

 

[Lew Zealand]

Maybe Apple will gift Russia a top of the line Mac Pro and monitor and tell them to keep the change.

 

[VaRmeNsI]

I suspect they are set purposely low so the companies just pay it so as not to get banned.

 

[nodfor]

I suspect they are set purposely low so the companies just pay it so as not to get banned.

They are low because Russia is closer to the free-market model than the US or the EU.

 

[kiwigraeme]

The link above for data localization law - is worth a skim
2 things - this law is that data must be exclusively in Russia .

Plus when you see costs outline of localization and reporting requirements - plus cost of keeping data exclusively in Russia - so data must be washed - as western countries need at least summaries Air B&B for western clients , accounting , reporting

These fines are so much cheaper - it's a win-win - Public relations a bit of dosh and small cost for border guard not to search your bag ( ve have other vays )

 

[bviktor]

They are low because Russia is closer to the free-market model than the US or the EU.

Yeah, whatever the hell you're smoking.

 

[kiwigraeme]

Yeah, whatever the hell you're smoking.

Thing is it's kind of true - may not so much for Russia - but in countries no matter the govt type - if they don't have good social welfare you see people selling individual cigarettes , combing rubbish tips . Fines against big companies are entirely political - support ruling party- all sweet

 

[nodfor]

Yeah, whatever the hell you're smoking.

The maximum tax rate for personal income in Russia is 15%.
In Germany it is 45%.

 

[Leuten]

The maximum tax rate for personal income in Russia is 15%.
In Germany it is 45%.

But what does that have to do with your free-market comment?

 

[nodfor]

But what does that have to do with your free-market comment?

Absolutely nothing. I mean the tax rate is mentioned in every analysis about how free a market is, but it has nothing to do with it.
Why would it matter? You can even tax a person's income 99% and call it a free market, if he is free to spend the other 1% the way he wants! Yay!