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Zoom bans sales and distribution to Russian Government, State firms: Report

Zoom bans sales and distribution to Russian Government, State firms: Report
April 08
04:56 2021

Since last year, the video conferencing platform had emerged as a leading virtual meeting platform as millions were forced into self-isolation due to the coronavirus pandemic.

Zoom has banned its distributors from selling services to government agencies and partly state-owned companies in Russia and neighboring countries, the Moscow Times reported citing a daily on April 7.

According to the daily, the company’s authorised partner in Russia, RightConf, informed its Russian and ex-Soviet partners that the company is withdrawing sales licenses for state agencies and organizations with state beneficiaries.

Since last year, the video conferencing platform had emerged as a leading virtual meeting platform as millions were forced into self-isolation due to the coronavirus pandemic.

Reportedly, the sales ban came into effect on March 31 and will not apply to current contracts.

RightConf CEO, Andrei Petrenko, was quoted as saying, “I don’t rule out that the company will make a separate product for the public sector.”

The experts interviewed by the daily linked the ban to risks of US sanctions and difficulties complying with Russian legislation, which Moscow began enforcing in full in recent years.

This Zoom’s policy could affect the Russian education market, adding that the company took part in dozens of tenders announced by Russian colleges and universities in 2020.

The Zoom Video Communications occupies a quarter of Russia’s video conference market but generates only 1 percent of its revenue from it.

The country requires tech companies to pre-install their devices with the government-approved Russian software. As per the report, Russia has vowed to introduce its own Zoom replacement by 2022.

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