Ads under control
The advertising services sector saw a new regulation approved by the State Duma on December 21, in its final reading. The law sets out that oversight of online classified services should be exercised by a Russian legal entity or a Russian citizen. The core aim is to ensure that ownership matters influence decision-making within these platforms, shifting the focus from ownership to actual control as demonstrated by who holds voting power. Notably, marketplaces themselves are exempt from the law.
The initiative’s author explained that a key shift in the second reading was moving attention away from ownership alone and toward control, specifically the capacity to dispose of at least half of the votes tied to voting shares within the controlling legal entity. The implication is that the entity in charge of the service would bear responsibilities for the platform, including potential criminal or administrative liability. Advertisements deemed illegal must not appear on these sites, and owners are required to provide Roskomnadzor with necessary information within ten days for these ads to be registered and monitored.
Regulating online advertising has been a topic of discussion for years, and its relevance persists even amid changing international business conditions, including pauses by several Western firms in Russia.
Suspicious control
Despite the law’s overall relevance and clarity, businesses and industry players question how the mechanism of Russian control will be explained and enforced in practice. They advocate for an open dialogue with business representatives to ensure the legislation achieves its intended effect. Karen Ghazaryan, Director of Analysis at ANO Tsifrovaya ekonomika, notes that the law moved quickly from proposal to passage. It was first introduced in June, passed the first reading, and received final approval in early July. The latest readings occurred in December, one day apart. Ghazaryan points out that the regulation targets a large, complex market, and many nuances may not be captured in broad wording. As a result, there is a call to refine provisions through ongoing consultation with the industry to address essential points in future iterations.
Some challenges discussed include the overlap with other documents addressing data storage security and professional ethics. A number of major classifieds players have endorsed a Declaration of Professional Ethics, emphasizing the protection of personal and sensitive data as a core principle. The charter also highlights self-regulation standards such as transparency and accountability, signaling industry maturity and a willingness to adhere to shared guidelines. In this view, the regulation is seen as a formal continuation of established practices rather than a break with them.
Industry voices interviewed by socialbites.ca agree that constructive dialogue is vital. Real estate search platform CIAN expressed openness to further discussions with the regulator to review and clarify the mechanism and its wording. The sector comprises a wide range of companies, so flexibility in how rules are applied—depending on scale and organizational structure—is considered essential to ensure the law remains workable without hampering legitimate business activity.
Questions remain about how the rule confirming Russian control over decision-making will be interpreted, particularly for firms with a single class of shares that does not distinguish voting rights. Clarification is needed on how this rule applies to such entities and other nuanced scenarios that could affect their operations. CIAN emphasized the need for further work to resolve these points through coordinated dialogue with the regulator.
Another industry representative, hh.ru, argues that the regulation should allow Russian companies to operate without requiring excessive organizational restructuring. Stability and efficiency depend on maintaining smooth operations, especially given the critical role online advertising plays in aiding employment, housing, and consumer purchases. The discussion should also yield practical mechanisms to determine Russian control while preserving essential business processes, according to hh.ru’s position.
Overall, the industry contends that online advertising remains a significant conduit for connecting Russians with jobs, housing, and goods. It also drives IT sector growth by supporting local employment and investment in software development and digital platforms. The path forward, they argue, lies in a collaborative approach that involves regulators and businesses in shaping a coherent framework that sustains both consumer access and economic vitality. The dialogue should focus on practical, evidence-based solutions that minimize disruption to everyday digital activity while upholding regulatory objectives.