EU Fines on US Tech Giants Surpass Local Tech Tax Revenue
EU to make more money from fining US tech companies than taxing its own
The European Union is set to generate more revenue from fining US tech companies than from taxing its own public tech sector. This trend was highlighted by a recent €890 million penalty imposed on Google for violating the Digital Markets Act. Critics suggest this has become a reliable business model for the EU, raising questions about the incentives driving regulatory enforcement versus fostering domestic innovation.
Yeah, it’s a business model at this point. And since it’s working, they’re just going to double and triple down. Incentives are everything.
- eqvinox
This post makes no sense, the EU doesn't have any rights of interior taxation, the member states haven't devolved that. It only does trade agreements and sets (not: collects!) import/export taxes. The only thing this could be is somehow summing/estimating from member states' numbers?
Very unclear to me what is going on here. I'm treating it as bogus for the time being. Can somebody else make sense of it?
- ZeroGravitas
Maybe their own companies would make more money and pay more tax if American companies would stop breaking the law all the time.
- throwawayffffas
Fines are taxes one pays to not follow the rules, and these companies operate in the EU.