11 hosting companies fined for lack of branches in Russia
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The magistrate of precinct No. 422 of the Tagansky district of Moscow imposed turnover fines on 11 cloud hosting companies for a total amount of over 367 million rubles. for failure to fulfill obligations to organize the activities of a foreign legal entity on the Internet in Russia (Part 2 of Article 13.49 of the Code of Administrative Offenses of the Russian Federation), Interfax reported with reference to the press service of the court.
It’s about companies Amazon Web Services, Inc., HostGator.com LLC, Bluehost Inc., Kamatera Inc., Ionos Inc., Network Solutions LLC, DigitalOcean LLC, DreamHost LLC, GoDaddy.com LLC, WPEngine, Inc. and Hetzner Online GmbH. The article he is charged with provides for punishment for failure to fulfill obligations to register a personal account on the Roskomnadzor website, posting a feedback form for Russian citizens and organizations, and the absence of a Russian representative office.
Hetzner Online GmbH was fined in the amount of 117 million rubles, DigitalOcean LLC – 30 million rubles, Amazon Web Services (a subsidiary of Amazon) – 200 million rubles, Bluehost Inc., Kamatera Inc., Ionos Inc., DreamHost LLC, GoDaddy .com LLC, WPEngine Inc., HostGator.com LLC, Network Solutions LLC – 6 million rubles each. All of these companies provide cloud and web infrastructure services.
According to the law, if a foreign company operates in Russia without opening a branch or representative office, it faces a fine in the amount of 1/15 to 1/10 of the total amount of revenue for the calendar year.
In October 2023, Roskomnadzor expanded restrictions on 12 foreign hosting providers for refusing to open representative offices in the country. These include Amazon Web Services, GoDaddy and Hetzner. In relation to 11 companies, a ban was imposed on the search results of information about the websites of these companies.
On the responsibilities of foreign hosting providers in the Russian Federation – in the Kommersant material “Roskomnadzor has counted to twelve”.
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