On 14 July 2022, changes* to the Code of Administrative Offences (the “Code”) came into force.
The adopted amendments introduce liability for non-compliance with Federal Law No. 236* “On the activities of foreign persons in the information and telecommunications network ‘Internet’ on the territory of the Russian Federation” (the “Landing Law”).
As a reminder, the Landing Law imposes a number of obligations on foreign companies whose activities are aimed at the Russian market, including opening a Russian office. More details on the Landing Law can be found in our previous alert.
The Code introduces the following penalties for foreign companies that fail to comply with the duties under the Landing Law:
| № | Obligation | Fine for breach of the obligation |
|---|
| 1 | Installing software to determine the number of users of an information resource | From RUB 500,000 (EUR 8,161) to
RUB 1m (EUR 16,322) |
| 2 | Placing an electronic feedback form for Russian users on an information resource | From 1/15 to 1/10 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 6m (EUR 97,934))
For a repeat offence:
From 1/10 to 1/5 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 10m (EUR 163,224)) |
| 3 | Registering a personal account on the official website of Roskomnadzor | From 1/15 to 1/10 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 6m (EUR 97,934))
For a repeat offence:
From 1/10 to 1/5 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 10m (EUR 163,224)) |
| 4 | Opening a branch, representative office, or establishing a legal entity in Russia and ensuring its operation | From 1/15 to 1/10 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 6m (EUR 97,934))
For a repeat offence:
1/10 to 1/5 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 10m (EUR 163,224)) |
| 5 | Collecting personal data of Russian citizens if the collection has been prohibited by Roskomnazdor’s decision | From RUB 1.5m (EUR 24,484) to
RUB 6m (EUR 97,934)
For a repeat offence:
From RUB 6m (EUR 97,934) to
RUB 18m (EUR 293,803) |
| 6 | Compliance with the prohibition on the dissemination by a foreign entity of advertisements about itself or its information resource if such advertisements have been banned by a decision of Roskomnadzor | From RUB 3m (EUR 48,967) to
RUB 6m (EUR 97,934) |
| 7 | Compliance with the prohibition on the distribution of advertisements by a foreign entity on its information resource if the distribution of advertisements on that information resource has been banned by Roskomnadzor | From RUB 3m (EUR 48,967) to
RUB 6m (EUR 97,934) |
| 8 | Submitting to Roskomnadzor the information required to maintain the list of foreign persons or entities carrying out Internet activities | From RUB 300,000 (EUR 4,987) and RUB 700,000 (EUR 11,426) |
The Landing Law also stipulates that certain enforcement actions against foreign companies must also be enforced by others, such as advertising distributors, hosting providers and search engine operators.
In addition, the new law makes such entities liable for failing to fulfil their duties:
| № | Obligation | Fine for breach of the relevant obligation |
|---|
| 1 | Obligation on the search engine operator to indicate when displaying search results that a foreign person or entity is in breach of the Landing Law | From RUB 1.5 (EUR 24,484) to
RUB 5m (EUR 81,612)
For a repeat offence:
From RUB 3m (EUR 48,967) to
EUR 10m (EUR 163,224)) |
| 2 | Obligation for a search engine operator to stop displaying information about a foreign person or entity’s information resource in search results if Roskomnadzor has taken such an enforcement measure | From RUB 1.5m (EUR 24,484) to
RUB 5m (EUR 81,612)
For a repeat offence:
From RUB 3m (EUR 48,967) to
RUB 10m (EUR 163,224) |
| 3 | Compliance with the prohibition on the dissemination of advertisements in relation to a foreign person or entity or its information resource if such advertisements have been banned by Roskomnadzor | From RUB 500,000 (EUR 8,161) to RUB 3m (EUR 48,967) |
| 4 | Compliance with the prohibition on the placement of advertisements on a foreign person or entity’s information resource if Roskomnadzor has banned advertisements on that information resource | From RUB 500,000 (EUR 8,161) to RUB 3m (EUR 48,967) |
| 5 | Obligation of a hosting provider or other entity hosting an information resource on the Internet to take measures to restrict access to the information, information resource or website in cases established by law | From RUB 800,000 (EUR 13,058) to RUB 4m (EUR 65,289)
For a repeat offence:
From 1/20 to 1/10 of the aggregate amount of revenue from the sale of all goods (works, services) for the calendar year preceding the violation (but not less than RUB 4m (EUR 65,289)) |
Given the imposition of significant fines, we recommend that foreign companies whose activities may fall under the Landing Law assess the measures necessary to ensure compliance with the requirements of this law.
Russian companies are also advised to review their internal processes, including advertising, in order to avoid being held liable for non-compliance with the enforcement measures imposed under the Landing Law.
* In Russian
Co-authored by Shermet Kurbanov, Paralegal in Intellectual Property.
