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1. The fine seems to be based on their revenue. 1.23 billion are a little over 5% of 22.291 billion. (I don't know where the 4.9% come from.) 2. It seems logic
by teamhappy 9y ago
1. The fine seems to be based on their revenue. 1.23 billion are a little over 5% of 22.291 billion. (I don't know where the 4.9% come from.)
2. It seems logical but it isn't. In you're a rich kid that starts selling drugs your fine is going to be based on all the money you have, not just the money you made selling drugs. That makes all the sense in the world given that the fine is supposed to hurt you financially in order to change your behavior.
- azernik 9y agoCorporations are not individuals; they can split and merge. You don't want your regulatory penalties to be gameable by restructuring the company (e.g. having a separate subsidiary handle European business).
- grigjd3 9y agoThe idea here isn't to be punitive, but to change behavior. A smaller fine, with the possibility of more for continued misbehavior is far more effective.