Foreign tech companies must open offices in Russia under new draft law


Foreign IT firms with a daily audience in Russia of at least 500,000 people will be forced to open offices in Russia, register a personal account on the Roskomnadzor's website and provide an electronic feedback form or face penalties.

Deputies supported the draft law in the first reading on April 20. IT giants will face a fine of up to one-tenth of the total amount of revenues of a foreign entity for refusal to place a personal account on the Roskomnadzor website. Similar penalties will be imposed on companies for failure to post an electronic feedback form on their site and to register a personal account on the site of Roskomnadzor.

In addition, fines will apply to operators of search engines, hosting providers, advertisers and advertisers "for failure to implement measures that force foreign IT-companies to comply with the law" - up to 5 million rubles.

If the law is adopted, hosting providers who refuse to provide Roskomnadzor with data allowing to identify the owner of the information resource of the foreign entity, will be fined up to 300 thousand rubles. Advertisers and advertisement distributors will be fined up to 3 mln roubles: both for advertising of violators of the law and for advertising on the resources of that company.

Administrative fine of up to 300 thousand rubles may be imposed on hosting providers who refuse to provide to Roskomnadzor the data that identifies the owner of the information resource of a foreign legal entity. Advertisers and advertisement distributors may be fined up to 3 million rubles for advertising on the resources of the violators.

Currently, violating the law  threatens IT companies with exclusion from search, a ban on advertising in Russia, a ban on accepting payments, and partial or complete blocking. Apple has complied with all the requirements of the law "on landing". 


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