Google Russia

Representing the liquidator of Google Russia, appointed following bankruptcy proceedings triggered by Google International’s withdrawal from the Russian market in 2022, the firm announced that it had served a protective seizure order on Google International LLC in connection with ongoing litigation with its Russian subsidiary.

William Julié emphasised that this measure is part of broader international action challenging Google International LLC’s strategy of siphoning off the assets of its foreign subsidiaries.

Between 2008 and 2021, Google International LLC derived substantial profits from its Russian subsidiary, while unilaterally and drastically reducing the percentage of profits that Google Russia was allowed to retain, before withdrawing from the Russian market in 2022 and leaving its creditors in limbo.

In 2021, the parent company transferred dividends amounting to €110 million from its subsidiary’s assets, despite the latter’s critical financial situation. The subsidiary was declared bankrupt in November 2023. This transfer was cancelled by the Moscow Commercial Court in July 2024, a decision upheld by the Russian Supreme Court.

Despite these court decisions, which were handed down more than a year and a half ago, Google International LLC has not paid its subsidiary the sums owed. Google Russia is now seeking to enforce these decisions in the various jurisdictions where the parent company owns assets, including France.

As a preliminary step, and in order to ensure the availability of these assets, Google Russia has had a bailiff seize the debts and shareholders’ rights as a precautionary measure. William Julié pointed out that under French law on enforcement, a precautionary seizure based on a foreign judgment does not require prior authorisation from a French judge.

This case is an opportunity to recall the principle of the legal autonomy of subsidiaries and the importance of protecting them against abusive practices by their parent company, even when they are wholly owned.