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Perhaps it is an action boosting EU-based companies? Otherwise they are at a disadvantage in competition, because US-based Googles and Facebooks game the e.g. t
by beevai142 9y ago
Perhaps it is an action boosting EU-based companies? Otherwise they are at a disadvantage in competition, because US-based Googles and Facebooks game the e.g. the tax system in a way that EU-based companies cannot.
- nradov 9y agoTax avoidance isn't helping large US based tech companies aquire more users or gain more control of the Internet. It only impacts investors and executives. So that's not the reason why EU based competitors have mostly failed to reach dominant positions.
- alexasmyths 9y ago"Tax avoidance isn't helping large US based tech companies aquire more users or gain more control of the Internet" No, it really does help large entities wield their power even more. The billions of dollars that the big cos have stockpiled ensures they can suck up the talent, attack new markets and keep competitors at bay. It's not the biggest thing, but it's a thing.
- nradov 9y agoNo it doesn't really help. The money is mostly stockpiled offshore specifically to avoid taxation. They aren't using it to hire more employees or launch new products. The only thing it might help with is to prevent hostile acquisitions.
- alexasmyths 9y agoYes, it does help. A) They have massive operations internationally and hire a lot. B) Did you witness Microsofts dismantling of Nokia? That was a takedown of an entire ecosystem and huge gift to Apple and Google/Android as well. Paid for by cheap taxes overseas.
- nradov 9y agoNokia never had a real ecosystem. That's exactly why they failed.
- alexasmyths 9y agoNokia had a massive eco-system of suppliers, tech providers, distributors, service providers. For every one person working at Nokia, there was another, in a company, somewhere else selling to them, buying from the, distributing for them. The same thing happened at BlackBerry. I'm not talking about 'apps' - I'm talking about a 'business' eco-system and value chain.
- blfr 9y agoTalent is bought with pre-tax money. Same with investments. And Facebook was barely making any money while it was becoming the dominant social network.