Russian Government Demands 13 Foreign Technology Companies Create Official Representatives In Their Countries

The Russian government is suing 13 technology companies for representative offices in the country. (photo: doc. pixabay)

JAKARTA - Russia has demanded that 13 foreign technology companies and most of them from the US officially establish representations in Russia by the end of 2021 or face possible restrictions or outright bans.

The request came from the country's communications regulator, Roskomnadzor, late Monday, November 22, which provided some details on what companies should actually do and targeted some companies that already have offices in Russia.

The foreign social media giant, with more than 500.000 daily users, has been required to open offices in Russia since the new law came into effect on July 1. The list published on Monday mentions the names of the companies for the first time.

The announcement lists Alphabet's Google, Facebook, Twitter, TikTok, and messaging app Telegram, all of which Russia has fined this year for failing to remove content deemed illegal.

Apple, which Russia has targeted for alleged abuse of its dominant position in the mobile app market, is also on the list. But neither of the companies responded to a Reuters request for comment.

Roskomnadzor said companies that violate the law could face restrictions on advertising, data collection and remittances, or an outright ban.

Russia has taken steps this year to support and promote its domestic technology sector over Silicon Valley alternatives, and proposed a tax on foreign-owned digital services, cutting taxes on domestic IT companies and requiring smartphones, computers, and other devices purchased in the United States. Russia to offer Russian software to users from the start.

The campaign also has a political dimension that critics have characterized as an attempt by Russian authorities to exert tighter control over the internet, something they say threatens and could cripple individual and corporate freedoms.

Those efforts include repeated fines for banned content and demands that user data from Russia be stored on servers in Russia.

Authorities have in the past also objected to Kremlin political opponents using foreign social media platforms to organize what they say are illegal protests and to publicize politically nuanced investigations into alleged corruption.

"What kind of representation the company should have in Russia is unclear," said Karen Kazaryan, head of analytics firm Internet Research Institute.

"There is no explanation in the law, there is no clarification as to what the legal form of the organization's representation will be," Kazaryan told Reuters on Tuesday, November 23.

Roskomnadzor, when asked for further information, referred to his statement to Reuters.

In addition to having a representative in Russia, the company must open an account on the regulator's website and have a feedback form to interact with Russian users, Roskomnadzor said.

"Foreign entities are required to restrict access to information in violation of Russian law," Roskomnadzor said, without providing further details.