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But how does that work with a company like say Google? What prices are there to raise? It's more like they happened upon an incredible natural resource (the u
by foobarian 9y ago
But how does that work with a company like say Google? What prices are there to raise? It's more like they happened upon an incredible natural resource (the users' eyeballs connected to an unregulated digital network newly built by government funds) and are charging whatever price the market will bear. The tax is just a forced extraction of some of that margin, and I'm not sure how they can compensate for that. If anything, if they really are a monopoly and increasing prices could have got them more revenue presumably they would have done it already.
- alsetmusic 9y ago> If anything, if they really are a monopoly and increasing prices could have got them more revenue presumably they would have done it already. A company cannot arbitrarily raise prices in isolation without risk of alienating customers. The difference here would be that both Google and its competitors would be subject to the same price hike.
- lg 9y agoactually that's not the case here, google and its competitors will only be subject to the same price hike if its competitors cross a certain gross revenue threshold, so biasing the market in favor of smaller players.
- dahdum 9y agoAdvertisers in the EU markets could see a surcharge on their bill of 3% for the tax.
- oh-kumudo 9y agoAdvertisers who target european users, in and outside of EU need to pay.