Zoom has been fined 115 million rubles ($1.18 million) by a Russian court for failing to open an affiliate branch in Russia. The fine was imposed by the Magistrate Court of the Tagansky District of Moscow on October 17, 2023. The court found Zoom guilty of operating without a local office, which is a violation of Russian law. The fine is one of the largest ever on a foreign company in Russia. Judge Timur Vakhrameyev of the Magistrate Court of the Tagansky District of Moscow said the fine is about one-tenth of Zoom’s revenue in Russia in 2022.
Background
Zoom is a video conferencing platform that has become increasingly popular in recent years, especially during the COVID-19 pandemic. The platform allows users to hold virtual meetings, webinars, and other events. Zoom has its headquarters in San Jose, California, and has offices in several countries around the world. However, it did not have a local office in Russia, which led to the fine imposed by the Russian court.
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The Fine
The fine imposed on Zoom by the Russian court is 115 million rubles ($1.18 million). The court found Zoom guilty of violating Russian law by operating without a local office. According to Russian law, foreign companies that provide services to Russian citizens must have a local office in Russia. The law is part of Russia’s efforts to regulate the internet and protect its citizens’ data.
In response, Zoom said that it does all it can to keep to the laws of the land in which it operates. The company said it would appeal the decision of the court through the relevant authorities.
Conclusion
Zoom now face a 115 million rubles ($1.18 million) fine by a Russian court. This is for operating without a local office in Russia. The fine is one of the largest ever on a foreign company in Russia. The court found Zoom guilty of violating Russian law. The law requires foreign companies that provide services to Russian citizens to have a local office in Russia.
