| ▲ | karmelapple a day ago | ||||||||||||||||
6% is the cost of sales tax in some places. That is not considered any kind of correction to bad behavior - it's literally the cost of buying goods in a variety of places. I'd strongly argue that 6% will not correct bad behavior. What corrects bad behavior? The threat of serious consequences to a business. | |||||||||||||||||
| ▲ | benoau a day ago | parent | next [-] | ||||||||||||||||
For Roblox their 6% of global turnover ($5b) is $300m which while it seems trivial, is 30% of their profit ($1b). For a company like Google this fine would be in the vicinity of $24 billion, which would be a bit over 20% of their annual profit. So for companies that have to answer to shareholders this is already a pretty big deterrent, but just in case if they reject compliance it becomes a periodic penalty! | |||||||||||||||||
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| ▲ | cbg0 a day ago | parent | prev | next [-] | ||||||||||||||||
That 6% could be more than your profit margin, depending on what business you operate. There's nothing saying that fines can't keep coming if your behavior isn't corrected, it's not just one fine then they leave you alone. | |||||||||||||||||
| ▲ | Aurornis a day ago | parent | prev | next [-] | ||||||||||||||||
> it's literally the cost of buying goods in a variety of places. Not an accurate analogy. This is a fine on sales, not expenditures. It would be like fining you 6% of your pre-tax income, not doubling sales tax on things you buy. > I'd strongly argue that 6% will not correct bad behavior. If the government threatened to take 6% of your pre-tax income if you violated a set of laws, would you laugh it off and refuse to change your behavior? Or would you make an effort to not incur those fines? | |||||||||||||||||
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| ▲ | ben_w a day ago | parent | prev [-] | ||||||||||||||||
> 6% is the cost of sales tax in some places. That is not considered any kind of correction to bad behavior - it's literally the cost of buying goods in a variety of places. 6% of annual, global sales, as an extra cost from one jurisdiction, which can impose this multiple times if there are multiple breaches, and where they're not the only jurisdiction with such rules, and the DSA isn't the only ruleset where fines are based on global revenue even in the EU (famously, GDPR). Or, to put it another way: 16 such fines in one year and you've lost 100% of your revenue. You don't get to make up for this by raising prices, because that just means "100% of your revenue" is now a bigger number. | |||||||||||||||||