Google's Record Fine of $2.8 Billion Was a 'Deterrent,' EU Says (bloomberg.com) 71
The European Union was aiming for a "deterrent effect" on Google and other technology giants when it ordered the Android-maker to pay 2.4 billion euros ($2.8 billion) for breaching antitrust law over how it displays shopping ads. From a report: Regulators weighed "the need to ensure that the fine has a sufficiently deterrent effect not only on Google and Alphabet but also on undertakings of a similar size and with similar resources," the European Commission said in a 215-page document laying out details of its seven-year investigation into the company. The "particularly large" revenue of Google's parent, Alphabet, also determined the size of the fine, the EU said. The penalty, levied in June, was more than double an earlier 1 billion-euro fine on Intel and came with a threat of more daily fines for Google if it didn't comply with an order to offer equal treatment to rival shopping-comparison services. Big numbers for big technology names have been a theme for EU Competition Commissioner Margrethe Vestager, who ordered Apple Inc. to pay back some 13 billion euros in taxes last year.
Re:Show trials do sell... (Score:5, Insightful)
Now, if Google were a German or French company, would the EU hound them as constantly? Quite doubtful.
Likely even more so. Aggregate data on individuals, for example, cannot be stored in databases in Europe without obtaining permission. Anyone would be entitled to have all their data removed from Google's databases, no matter where in the world they live. And worker's rights world-wide would be under regulation of where the company is headquartered. News it provides would have to hide the identity of any suspects not convicted. And much more, which is perfectly fine in the US, but not accepted in Europe.
Google gets the kids glove treatment precisely because it's not a European company.
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oh you, with your logic and stuff. its clear that VW AG was a US company it would totally be out of business like all the banks and GM and Chrysler. I mean its not VW is totally not TOO big to fail because if it were, then we the tax payers would give it all the cash it needed and virgin sacrifices to boot. and then call it a victory.
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Mostly correct, except for the bit about hiding the accused's name. Some countries have that, many don't.
It's a shame it's not Europe wide.
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They are going after Ikea as well.
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What is the German or French equivalent to google?
Or any Modern Tech Companies?
Perhaps the EU Rules are a bit too strict for that particular market?
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Ok, examples of new tech?
So they noticed... (Score:5, Insightful)
I'm glad someone (even if it's the EU, not the US) caught on. Fines that can be paid as a standard part of doing business are an expense, not a deterrent.
I honestly don't know if this fine is significant enough to actually defer Google.
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A colleague of mine worked for a company here in the US that did extreme B1/B2 visa abuse. They would have people man their offices, fresh off the boat from India, and every 3-6 months, ship them all back, and bring in another boatload. The fines? Part of doing business, because it was cheaper to pay the relatively tiny fines than it is to actually play the game.
I wish the EU would actually do some serious fines, and do it often. The GDPR may be the only thing that might companies even consider spending
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They have laws and enforce them; unlike the US which only really enforces its rule of law on the little guys. Don't act like this is a shakedown. This is the consequence for violating the rule of law in a non-corrupt place. Say what you will about the content of those laws; but at least, in Europe, the rule of law stands. Wish I could say the same for the US.
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Re:That's a nice tech company you have... (Score:4, Insightful)
Seriously, did you just relate non-corrupt with the European Union? I do agree they have to level a huge fine for a company like Google, but it's really interesting how they just hit all the huge tech companies that have.... MONEY!!
No, they hit the companies that have offices or customers in Europe.
In general, smaller companies can ill afford to challenge the rules, and follow them. But there are plenty of examples of smaller companies being hit too, when they try to get around the laws.
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Re:That's a nice tech company you have... (Score:5, Insightful)
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But Google is not and has never been the only search engine available.
People choose to use Google.
Sure, lots of people like to point out that some device users just purchased a device and it was the default search tool installed on it, but they have no right to complain about the company behind it if they never took the time to research it and/or switch to another search provider.
It's like if I put a hammer on a stand on the roadside with a sign saying "Hit yourself on the head with this hammer for free!",
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I know that it may be a hard concept for many capitalists, but in some parts of the world, it would be preferable to not see dumped garbage bags on the street over getting paid handsomely when it occurs.
In the US, rich people can break laws with impunity because they can afford to pay the (for them) small fines. In most of Europe, the fine will be determined based on your wealth, so one man might get a $200 speeding ticket and another $20,000. That deters both of them, and the end result is that the numbe
Re:I like it. (Score:4, Insightful)
This is idiotic. If the passenger in my car is suddenly very sick, then speeding to the hospital makes sense as I decide that increasing his chances of survival is more important than the speeding fine. Why should I have to pay a higher fine to rush my passenger to the hospital if I'm rich?
Because the threshold for breaking the law is lower if you're rich and the fines are the same.
Turn it around - why should a poor person be afraid of being stopped because the ticket for him would be devastating, while a rich person doesn't have the same concern, because the ticket would be negligible for him?
It should deter the rich person and the poor person just as much. When the fine is half a paycheck for one person and not even noticed for another, the determent is not the same.
Wealth shouldn't be a factor.
Exactly. Which is why the fines must hit everyone equally hard, not equal amounts, because then wealth is a factor.
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Google is free to not do business in the EU, or other places where they don't want to abide by the laws and regulations.
Fines in Europe are generally based on the income of the fined, and this is no secret.
Similar Deterrent Political Antitrust (Score:2)
Antitrust is whenever a business performs unfair/underhanded actions that result in hurting competitors or society in a way that is outside "the norm".
Well it could be argued then that political parties that lie in politics are doing the same thing to their competitors. Anything illegal could be lumped into this kind of strategy, no?
I think we'd solve a LOT of problems we're facing this way. Then each party locks into their platform and whoeverso is elected must execute each promise within their term, or fa
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A better solution is to just get rid of parties.
Democracies like the UK's and the US' which are representative democracies are supposed to be about having local representatives to push local issues such that respective parliaments come up with consensus that are at least palatable to a majority.
Parties are an affront to that, because they require that representatives override the local interest with party interest where there is a clash.
So in countries like the US or UK, we either need to ban parties or all
$2.8 Billion (Score:2)
At that level only Jail is a deterrent (Score:1)
Fines are a line item on the annual report.
Heck, they're actually in the addendum, and most investors don't even read them (but should).
At least get it right (Score:2)
"EU Competition Commissioner Margrethe Vestager, who ordered Apple Inc. to pay back some 13 billion euros in taxes last year"
No, the commission ordered Ireland to revert a long-standing case of corporate welfare done in a manner that violate the Common Market rules.
TED video (Score:1)
Related TED video:
How Amazon, Apple, Facebook and Google manipulate our emotions
https://youtu.be/xRL2vVAa47I [youtu.be]