“In case a gatekeeper does not comply with the obligations laid out in the DMA, the Commission can impose fines up to 10% of the company’s total worldwide turnover, which can go up to 20% in case of repeated infringement.”
Meta’s global revenue last year was $134 billion. It would have to be a historic fine to even make a dent. I’m not hopeful. This will be another “cost of doing business” situation.
They haven’t gotten that fine yet and $13 billion out of $134 billion is absolutely a “cost of doing business” fine. If they still make massive profits at the end of the year, they haven’t been hurt.
Corporations have to be punished and they rarely are.
No, a million is cost of doing business. Once you get into single digit percentage fines, you’re hurting them. Or do you expect shareholders to say, “ah, that’s fine, that’s just the EU, we’re gonna hold Meta stock because we like them”?
Another thing to consider is that it’s also about how many of those fines can the company absorb. Fine them a million? They can take a thousand of those before it even starts making a dent. But how many of the 1% fines can they take? 5? 10? 20?
I agree, they haven’t got that fine, never mind actually paid it. But it would be about a third of their profits, not exactly negligible, and it could double for repeated offences.
Define “massive.” Because if it doesn’t substantially cut into their profits then it’s not a fine but just the cost of doing business.
“In case a gatekeeper does not comply with the obligations laid out in the DMA, the Commission can impose fines up to 10% of the company’s total worldwide turnover, which can go up to 20% in case of repeated infringement.”
The way fines should be constructed. As a percentage of something’s worth.
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Oh you’ll see. It’ll be super massive. It’ll be amazingly punishing!
It’ll be like… 0.2% of their gross.
Then it’ll spend years in legal battles to become 0.05%.
Meta’s global revenue last year was $134 billion. It would have to be a historic fine to even make a dent. I’m not hopeful. This will be another “cost of doing business” situation.
A $13 billion fine does not look like a “cost of doing business” scenario to me.
They haven’t gotten that fine yet and $13 billion out of $134 billion is absolutely a “cost of doing business” fine. If they still make massive profits at the end of the year, they haven’t been hurt.
Corporations have to be punished and they rarely are.
No, a million is cost of doing business. Once you get into single digit percentage fines, you’re hurting them. Or do you expect shareholders to say, “ah, that’s fine, that’s just the EU, we’re gonna hold Meta stock because we like them”?
Another thing to consider is that it’s also about how many of those fines can the company absorb. Fine them a million? They can take a thousand of those before it even starts making a dent. But how many of the 1% fines can they take? 5? 10? 20?
I agree, they haven’t got that fine, never mind actually paid it. But it would be about a third of their profits, not exactly negligible, and it could double for repeated offences.