| ▲ | cmiles8 a day ago |
| For Google this is just like parking tickets to UPS. A cost of doing business in town. |
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| ▲ | riffraff a day ago | parent | next [-] |
| this comment always comes up and it's _wrong_. The goal of the regulation is to get the operators to comply, which they usually do after fines (EDIT: and litigations and whining, of course), because the costs of infractions are increased if they don't comply. |
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| ▲ | 20k a day ago | parent | next [-] | | The issue is they usually comply with the specific law being broken, and then immediately stop complying with a different law The goal should be to incentivise them to comply with the law as a whole, not to keep deliberately breaking different sections of the law to make profit above the level of fines That's why people want the level of the fines to go up, to disincentivise the more broad lawbreaking | | |
| ▲ | p-e-w a day ago | parent [-] | | Imagine regular laws worked that way, where a prior conviction is only relevant if it was for the exact same crime, and you can go around committing dozens of crimes and be treated like a first offender every time because this time you chose robbery and last time it was theft. | | |
| ▲ | riffraff 6 hours ago | parent | next [-] | | This is literally how it works for most fines. You don't get a higher fine every time you go very the speed limit or park in the wrong place. You don't get a higher fine if you don't have a bus ticket. This is not a felony. Perhaps it should be, but it's not. | |
| ▲ | shevy-java 19 hours ago | parent | prev [-] | | Well, usually for small crimes, repeated offenders get subsequently higher and higher fines. Now if only this were to work for corporations too ... |
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| ▲ | Teever a day ago | parent | prev | next [-] | | If the cost of penalties doesn't exceed the cost of the offence then it's a winning move to offend. The correct solution to this is to have fines scaled to the value of a company and an exponential doubling of fines for every re-offence that falls under the same category of crime with a cooling off period after a few years. | | |
| ▲ | benoau a day ago | parent | next [-] | | The fines do scale with noncompliance, if Google were to continue to offend they would get a daily fine that is retroactively applied to the full duration. | |
| ▲ | maccard a day ago | parent | prev [-] | | Because the goal isn’t to punish, it’s to get them to do what the law wants them to do. The fine is supposed to be a slap on the wrist - the actual desired behaviour is compliance | | |
| ▲ | Teever a day ago | parent [-] | | That is the incorrect way to apply fines. The first fine should sting and the second should be damaging to a company and the third should be crippling. The EU has been fining Google for years to no avail. | | |
| ▲ | HatchedLake721 a day ago | parent [-] | | > The EU has been fining Google for years to no avail. Me after a quick research: 2017: €2.42 billion fine for favoring its own comparison shopping service. Results: huge changes to Google's shopping service. 2018: €4 billion fine over Android-related practices. Results: Google Play separately from Google Search and Chrome, and manufacturers gained more flexibility over preinstalled apps. | | |
| ▲ | bornfreddy a day ago | parent | next [-] | | 2026: Google again found breaking the law. | | |
| ▲ | inigyou a day ago | parent [-] | | yeah, 8 years later? If someone was born on the last one they're now in 4th grade and halfway to being able to drive. Are these really correlated events? | | |
| ▲ | Teever 21 hours ago | parent [-] | | Given that Larry Page and Sergey Brin still control Alphabet, still act with impunity, and show no signs of slowing down yes, they are absolutes correlated events. |
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| ▲ | Teever 14 hours ago | parent | prev [-] | | I think that's a great start and I see a something close to a doubling from 2.42B to 4B but it stops there and this most recent fine is under a billion. What we need to see is that exponential function. Everyone here should have at least the intuition from Moore's Law and COVID that exponential growth is either your best friend or your worst enemy depending on if it's working for you. The next fine should've been 8B, and the one after that 16... The regression back down to 1B is counter productive to the goal of inducing compliance and reducing the offender's ability to continue to offend by taking away their resources to do so. |
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| ▲ | shevy-java a day ago | parent | prev | next [-] | | No, the comment is not wrong. It is correct. The big corporations don't really fix their evil behaviour. That's why fines keep on re-emerging. > because the costs of infractions are increased if they don't comply. See above. If the fines were to work, it would not become a repeating issue. I think mandatory jailtimes are the only solution. When the CEOs are suddenly for 10 years in a small room, slowly they will begin to stop their mafia-strategy. | |
| ▲ | sajithdilshan a day ago | parent | prev | next [-] | | Not really, next time they just make a calculated risk decision, if the revenue from non-compliance is quite significant than the fine they have to pay later (if they have to, because I can imagine so many other cases which went unnoticed or didn't result in a fine) there is no reason for them to comply next time. It's not like they will be prohibited from doing a business after n number of compliance violations or fines | | |
| ▲ | dinfinity a day ago | parent [-] | | Except they did comply for all the cases where they were fined. They're not fined for one-off behaviors, but for how their services are structured. That's GPs point. |
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| ▲ | OsrsNeedsf2P a day ago | parent | prev | next [-] | | I work in this space (not for Google). These fines are 100% a tax, and would be levied for any reason whatsoever | |
| ▲ | hirako2000 a day ago | parent | prev [-] | | The cost increases, but given the revenue Google generates how is that not just a tax? I've never received a dollar from the EU as a victim. If the fines are moderate and big co keeps paying that's steady revenue for the EU institutions. | | |
| ▲ | ben_w a day ago | parent | next [-] | | You appear to be arguing with the assumption that "get the operators to comply" is false. These companies do, in fact, change behaviour in response to such actions; they may hire lawyers to find and exploit as many loopholes as they can, but they do ultimately comply. Even X ultimately complied in response to Brazil, and the EU is a much more important market for Google than Brazil ever was for X. (Why would you expect to get dollars from an EU settlement?) | |
| ▲ | ivan_gammel a day ago | parent | prev | next [-] | | It‘s nice to have such revenue to fund EU programs on digital sovereignty. European institutions give plenty of money to startups. You need an entry to the program, but when you are in, it can account for 50-70% or more in your early stage funding. And that‘s nice, because you keep more equity. | | |
| ▲ | mosura a day ago | parent | next [-] | | > You need an entry to the program, but when you are in, it can account for 50-70% or more in your early stage funding. It is almost entirely unsurprising that the EU tech industry is such a disaster area when people say things like this as if they are a good thing. | | |
| ▲ | brazukadev a day ago | parent | next [-] | | I find it more interesting that US Americans think letting their companies do whatever they want everywhere (as they currently do) is the better "strategy". | | |
| ▲ | mosura a day ago | parent [-] | | “Everyone opposed to EU policy is a US American” fallacy in play. As is the “letting their companies do whatever they want everywhere (as they currently do) is the better "strategy"” when this wasn’t said or even implied anywhere. It is amazing how HN has descended into arguing against people making points by saying they are someone else and saying something completely different. |
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| ▲ | sam_lowry_ a day ago | parent | prev [-] | | Looking at the ivan_gammel's startups now and chuckling. | | |
| ▲ | mosura a day ago | parent [-] | | Looking at the state of the EU tech industry and chuckling. The point of the EU subsidies is, surely, not to enrich a few people with the right connections but to stimulate a productive ecosystem that supports well paid skilled employment, right? Right? | | |
| ▲ | ivan_gammel 20 minutes ago | parent [-] | | You don‘t need the right connections. You can be an outsider and spend 10% of the grant to hire a guy who will help you with paperwork and refining the idea to fit in support initiative. Basically, you look around what grants are there, find the ones you like and can align to, find a consultancy and get your 200k-1M€. Just make sure you can show something in the end, as promised. Honestly, I don’t know what are you talking about. Tech industry in Europe is far from being dead. Not least because for many American companies Europe as market is dead. |
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| ▲ | clear-octopus a day ago | parent | prev | next [-] | | [dead] | |
| ▲ | sajithdilshan a day ago | parent | prev [-] | | I don't think that's a sustainable model. Also most of those fines goes into filling the gaps in budgets related to recurring costs of maintaining the bureaucratic behemoth rather than funding research or innovation. | | |
| ▲ | close04 a day ago | parent [-] | | The US was lucky to have Musk and DOGE fix that bureaucratic behemoth, if only the EU had the same luck. How long have you been working inside the behemoth? Can you tell us more about the inner workings, where the money goes, how much, etc? | | |
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| ▲ | stavros a day ago | parent | prev | next [-] | | It's a tariff on noncompliance, designed to make it cheaper to comply than to not comply. | |
| ▲ | oblio a day ago | parent | prev | next [-] | | > I've never received a dollar from the EU as a victim. There's this standard assumption that HN users are well educated. Budgets don't work like that. It's not like the US federal government collects taxes and then deposits bags of gold coins on people's doorsteps. Taxes, fines, etc are all collected and then they mostly go to a general, undifferentiated budget which is then divided by the various ministries (departments, whatever). So yes, if you're a EU citizen you did get the money back. As roads, hospitals, research funding, etc. | |
| ▲ | cromka a day ago | parent | prev [-] | | > I've never received a dollar from the EU as a victim. This isn't a class action. |
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| ▲ | BadBadJellyBean a day ago | parent | prev | next [-] |
| The maximum fine the EU can impose with the DMA is "10 % of its total worldwide turnover in the preceding financial year". I think this would hurt even Google. And I think a billion dollars is not nothing. |
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| ▲ | benoau a day ago | parent | next [-] | | Last year Google had $400 billion revenue so it's a massive amount of money, and they are allowed up to 20% for repeat offenders! | | |
| ▲ | mnicky a day ago | parent [-] | | That would be something like 70% of their yearly global profit AFAIK. |
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| ▲ | dlahoda a day ago | parent | prev [-] | | EU is just 1/20 of world population, why 10%? Seems dishonest. EU human valued 2x more of other human? | | |
| ▲ | throw101010 a day ago | parent | next [-] | | The same principle evoked in the rest of this thread, if the penalties match exactly or are under the profits you can generate by injuring (in the legal sense) EU citizens it's not really a penalty but rather a cost of business. Plus markets are very interconnected, especially the digital ones. EU competition law is not framed around valuing Europeans more than others, it is framed around protecting competition and market functioning inside the EU. No need to moralize it and pretend anyone is using this "value" European humans more than other humans. | |
| ▲ | BadBadJellyBean a day ago | parent | prev | next [-] | | Because they decided that way. Any other country in the world can decide the same thing but they don't have the same leverage as the EU. Google makes a lot of money in the EU. | |
| ▲ | ben_w a day ago | parent | prev | next [-] | | Why a year, when they've often been breaking the rules for much longer than that? Why not 20% (30%), given that's the share of world GDP (PPP) due to the EU? Why revenue rather than profit? The answer is: big round number that's roughly justifiable as a big stick for, and I want to emphasise this, a punishment to make sure they don't break the rules. | |
| ▲ | account42 a day ago | parent | prev | next [-] | | The damages done that caused the fine are usually spread over multiple years. | |
| ▲ | benoau a day ago | parent | prev | next [-] | | India is doing 10% as well. The reasoning is very simple just "carry a big stick", multinational companies need to fear the fines to want compliance. | |
| ▲ | a day ago | parent | prev [-] | | [deleted] |
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| ▲ | dlahoda a day ago | parent | prev | next [-] |
| When fines became casual? Is it like taxes? |
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| ▲ | Tade0 a day ago | parent | next [-] | | It is functionally just a form of tax that can't be offshored. Corporations reliably break the law, the EU reliably enforces it. I'm actually happy that this is the path the EU went, as there's a financial incentive to keep laws which benefit consumers. | |
| ▲ | spwa4 a day ago | parent | prev [-] | | No of course not. Ireland makes sure Google doesn't pay the minimum tax rate in the EU: https://www.irishexaminer.com/business/companies/arid-417489... €4.536bn on €86.6bn, or about 5% (which is one third of the amount Ireland promised in an international treaty they would charge ...) |
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| ▲ | jchw a day ago | parent | prev | next [-] |
| I suggest that whenever Google get fined less than. $1B, they get an instructional booklet reminding them of how to count that low. |
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| ▲ | Imustaskforhelp a day ago | parent | prev | next [-] |
| well, Meta[0] is getting sued for a 1.4 Trillion$ by many US states combined if that interests you. [0]: https://www.msn.com/en-us/news/crime/meta-says-it-s-staring-... |
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| ▲ | baq a day ago | parent | prev | next [-] |
| 'a billion here, a billion there, pretty soon you're talking real money' ...but this is a private(ish) business, it doesn't have a printer in the back yard, a billion is a lot no matter how you look at it, especially if they're now facing a tough choice between cannibalizing their results with AI summaries or having AI competitors eating their lunch. |
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| ▲ | petre a day ago | parent | prev | next [-] |
| Well it's 15% or their Q2 spending, to put things into perspective. |
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| ▲ | vrganj a day ago | parent | prev | next [-] |
| This fine is more of a warning shot. The DMA allows for fines of up to 10% of global revenue or 20% in the case of repeat offenders. These 890M are a first warning. Now Google has some time to react, but if they don't implement what is required of them, another, higher, fine will be issued. 20% of global revenue is not just cost of doing business, to any business. |
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| ▲ | atoav a day ago | parent | prev | next [-] |
| fine = previous_fine² |
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| ▲ | stodor89 a day ago | parent | prev [-] |
| Yep. If a train ticket costs 100 euro and the fine for freeloading is 5 euro, you'd be a fool to buy a ticket. Don't blame Google for pushing boundaries. That's what people (and corpos) do in any competitive activity. Do blame our politicians for being incompetent and ill-meaning. |
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| ▲ | ben_w a day ago | parent | next [-] | | Back when I lived in Cambridge, someone worked out this was actually true for one of the car parks. (Not those exact numbers, but the same point). | | |
| ▲ | suslik a day ago | parent [-] | | I lived in a city where police can fine you for biking in the night without the lights on, but police catches people so rarely that, per ride, the mathematical expectation of a fine was lower than the cost of batteries. | | |
| ▲ | throwway120385 a day ago | parent | next [-] | | You really shouldn't apply statistics this way. Expected value is useful if you're an insurance company because you can price insurance products slightly above the expected value, but if the fine is $100, batteries are $90, and you get fined after going on 10 bike rides the fine doesn't magically become $10 it's still $100 and you still could've saved $10 by spending $90 before getting on your bike. That is, unless you put $10 in a piggy bank every time you get on your bicycle, and then at that point why not put $90 down and then pay yourself back $9 per ride with $1 of interest? | | |
| ▲ | suslik 21 hours ago | parent [-] | | I mean that if fine / E[N_f] < battery_cost / E[N_b], where E[N_] is an expected number of rides before a fine / battery expire, then I save money per ride. In your example, you just pick the values such that the relation becomes '>'. |
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| ▲ | ben_w 21 hours ago | parent | prev [-] | | Today? Wow. You must have very weirdly expensive batteries and/or electricity. Around here, a complete replacement of non-rechargeable bike light batteries would cost €1.25, and they'd still last more than one ride each. Rechargeable batteries may cost more, but last thousands. | | |
| ▲ | suslik 21 hours ago | parent [-] | | That was quite a while ago. I can't recall exactly anymore, but the yearly battery cost was probably indeed quite low, ~20 euro maybe? They just didn't fine people often enough. |
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| ▲ | account42 a day ago | parent | prev | next [-] | | Even if a train ticket costs 9 Euros and a fine is 60 Euros but you are almost never checked it quickly becomes cheaper to eat the fines. | | |
| ▲ | suslik a day ago | parent [-] | | Until the tragedy of the commons kicks in. | | |
| ▲ | stodor89 21 hours ago | parent | next [-] | | That's a problem for future Homer. Man, I don't envy that guy! pours vodka into a mayo jar | |
| ▲ | Muromec 21 hours ago | parent | prev [-] | | When the fare dodging rate increases they send out more fare controllers too. |
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| ▲ | dlahoda a day ago | parent | prev | next [-] | | Nor. It more like train costs 15 and fine 5 if caught, and payed later. | |
| ▲ | Timon3 20 hours ago | parent | prev [-] | | You're leaving out the tiny detail that Google, like all tech giants (and like all big companies) is pouring tons of money into politics, and that's just talking about spending out in the open. How much money do you think Google and it's investors have collectively spent to influence politics? So no, Google shouldn't get a pass for pushing boundaries. Thinking like this only protects the capital class and the politicians responsible for this mess. | | |
| ▲ | stodor89 17 hours ago | parent [-] | | Of course they shouldn't get a pass. My point is, we can't expect them to behave. And if they promise to, that promise isn't worth much. |
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