Bill introducing turnover-based fines over failure to comply with grounding law submitted to State Duma
MOSCOW. March 10 (Interfax) - The State Duma Information Policy Committee has submitted a bill introducing turnover-based fines for foreign IT giants that fail to comply with Russia's grounding law for house consideration, the Committee's press service said in a statement.
The bill amends the Russian Code of Administrative Offenses.
An explanatory note to the bill says that the failure of IT giants to open an account on the website of the Federal Service for Supervision of Communications, Information Technology and Mass Media (Roskomnadzor), to publish a feedback form on their website, and to open a branch or a legal entity in Russia will be punishable with an administrative fine of 1/15 to 1/10 of company revenue. A repeat violation will be penalized with a fine of 1/10 to 1/5 of company revenue, the note says.
According to the press service, the amount of turnover-based fines will apply to company revenue generated in Russia.
Fines will be based on the revenue generated over the previous calendar year or a part of the calendar year, in which the offense was committed, prior to the offense date if the company did not sell goods, work or services last year.
If a foreign information resource has a private owner, such person will be subject to fines of 200,000 to 400,000 rubles, and a repeat violation will be punishable with a fine of 300,000 to 500,000 rubles. Fines on officials may range from 400,000 to 800,000 rubles, and a repeat offense will be punishable with a fine of 500,000 to 1 million rubles.