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Shut down the EU company entities, move all operations back to the US. There is no need to show a warning message to its users, EU laws do not apply to US firms

Shut down the EU company entities, move all operations back to the US. There is no need to show a warning message to its users, EU laws do not apply to US firms. Also, despite what EU lawmakers may say, a purely US-based internet company is not required to comply in any way with EU laws even if they have customers/visitors/users in the EU.

ForHackernews 8y ago
If Facebook wants to have any customers (advertisers) in Europe (and they do), then they are subject to EU laws.
thebradbain 8y ago
If that’s the case, why do any multinational tech companies have entities outside of their home country? There has to be something that allows them to access banking and finance in each country, no?
- sparkling 8y ago
  Convenience, processing payments in local currencies, making use of tax loopholes.
kylegordon 8y ago
In this context, you are wrong. http://lmgtfy.com/?q=us+company+eu+customers+gdpr http://lmgtfy.com/?q=us+company+eu+customers+gdpr
gpvos 8y ago
They do have to comply with EU laws if the EU says so. If nothing else, none of their management will be able to visit the EU anymore without risk of being prosecuted.
PeterisP 8y ago
Around 25% of Facebook's worldwide revenue comes from EU. Taking your ball and going home means leaving a lot of money on the table. A purely US-based internet company is required to fully comply with EU laws if they want to see a single (euro)cent from customers in EU, otherwise all that money can and will be seized.
- adventured 8y ago
  Facebook can trivially afford to end all business in the EU as needed. Very little of their business growth is in the EU, and that will go for future growth as well. Courtesy of the changes to US corporate tax law, Facebook also has no need to store large sums of foreign profit overseas eg in Ireland or similar (where the EU can reach it). They're one of the most profitable large corporations in world history in terms of margins. Their net income margin last quarter was 41.6%. Facebook will generate at least $23b in profit this year (probably closer to $25b). Giving up $4 or $5 billion of that is not a dire problem.
  - PeterisP 8y ago
    It depends on what you mean by "can trivially afford". If you take it as "will they survive if they do that", then yes, it's true for the reasons you describe. If you take it as "will they consider that as a plausible option worth discussing" the answer is hell no, it would be laughed at in their board room and not even given a serious thought. Giving up $4 or $5 billion (actually, FB European revenue was 10+ billion in 2017; giving up EU would lose all the revenue but not decrease the costs proportionally, but not that the number matters) of that is much more than a dire problem, it's a taboo situation - they'll survive if it magically happens, but nobody would even dare to be seen allowing it happen or not doing their utmost to prevent it. Even if there's absolutely no way around it, they'll go down screaming and do pretty much everything possible and impossible to avoid giving up that much money.

ForHackernews 8y ago

If Facebook wants to have any customers (advertisers) in Europe (and they do), then they are subject to EU laws.

thebradbain 8y ago

If that’s the case, why do any multinational tech companies have entities outside of their home country? There has to be something that allows them to access banking and finance in each country, no?

sparkling 8y ago
Convenience, processing payments in local currencies, making use of tax loopholes.

kylegordon 8y ago

In this context, you are wrong. http://lmgtfy.com/?q=us+company+eu+customers+gdpr http://lmgtfy.com/?q=us+company+eu+customers+gdpr

gpvos 8y ago

They do have to comply with EU laws if the EU says so. If nothing else, none of their management will be able to visit the EU anymore without risk of being prosecuted.

PeterisP 8y ago

Around 25% of Facebook's worldwide revenue comes from EU. Taking your ball and going home means leaving a lot of money on the table. A purely US-based internet company is required to fully comply with EU laws if they want to see a single (euro)cent from customers in EU, otherwise all that money can and will be seized.

adventured 8y ago
Facebook can trivially afford to end all business in the EU as needed. Very little of their business growth is in the EU, and that will go for future growth as well. Courtesy of the changes to US corporate tax law, Facebook also has no need to store large sums of foreign profit overseas eg in Ireland or similar (where the EU can reach it). They're one of the most profitable large corporations in world history in terms of margins. Their net income margin last quarter was 41.6%. Facebook will generate at least $23b in profit this year (probably closer to $25b). Giving up $4 or $5 billion of that is not a dire problem.
- PeterisP 8y ago
  It depends on what you mean by "can trivially afford". If you take it as "will they survive if they do that", then yes, it's true for the reasons you describe. If you take it as "will they consider that as a plausible option worth discussing" the answer is hell no, it would be laughed at in their board room and not even given a serious thought. Giving up $4 or $5 billion (actually, FB European revenue was 10+ billion in 2017; giving up EU would lose all the revenue but not decrease the costs proportionally, but not that the number matters) of that is much more than a dire problem, it's a taboo situation - they'll survive if it magically happens, but nobody would even dare to be seen allowing it happen or not doing their utmost to prevent it. Even if there's absolutely no way around it, they'll go down screaming and do pretty much everything possible and impossible to avoid giving up that much money.