Sergy Brin, Google's co-founder, maybe one of the most successful and well known Muscovites, but that didn't help persuade his fellow Comrades at the The Russian Federal Antimonopoly Service (FAS) to approve Google's bid for the Russian internet ad giant, Zao Begun.
Zao Begun, which is a majority owned by Rambler Media, serves 143,000 Russian language websites and the acquisition would enable Google to expand it's advertising reach into Europe's most rapidly expanding internet market.
Rambler is Google's chief competitor and is the dominant force in online Russia. The media company had planned to buy-out the entire company from Finama Bannatyne so that it could then sell to Google.
The company had planned to incorporate Google's AdSense advertising system taking advantage of Russia's 27 percent annual growth rate of the online community. ComScore also estimates that currently, only 14 percent of Russia's 142 million people are online so the rejection by the FAS represents a big blow to Google's expansion on the internet's eastern front.
The FAS stated that Google's document regarding the proposed deal had not provided enough detail about the acquisition. The deal with Zao Begun may not be entirely over, but the for now, the Roubles Google was eyeing from Zao Begun in 2009 will be left on the table.