Google upsets Russia, local advertising acquisition halted

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Russian regulators have said that Google cannot acquire Zao Begun, a local advertising company in Russia – effectively halting its $140 million deal that was agreed to in July. Zao Begun is owned by Rambler Media, another Russian company who runs various websites and a search engine.

Google has said, according to IDG, that it would be reviewing the decision of the Federal Antimonopoly Service in Russia; saying in a statement: "We are very disappointed to hear that FAS has come to this decision. We strongly believe that this acquisition will enable us to significantly improve opportunities for Russian users, advertisers and publishers as well as the entire industry."

While Google is popular in the Western world, it is having trouble in other countries with already established local search engines in China, South Korea and Russia.