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“Fat margins” is relative. For Apple, it may mean 50%; for a webshop, it may mean 10%. My point, however, is that we need to look at their profits, not revenue
by stingraycharles 5y ago
“Fat margins” is relative. For Apple, it may mean 50%; for a webshop, it may mean 10%.
My point, however, is that we need to look at their profits, not revenue, to understand the impact of the fine.
- toyg 5y agoIn the worst (for Amazon) scenario, we're looking at 20% of localized revenues over a year. Amazon reported an average 5-7% profit margin in the last few years. Even in the worst case, they will be back in pure profit after just a few years... For illustration, 5% of 5bn is 250m, so if the fine is 1.1bn, it will take them 4 years to absorb it from localized profits only. Peanuts.
- lillecarl 5y agoAssuming they're able to play by the rules, they might just not be able to. We've seen Google fined over and over for things. I'm not sure Amazon would be different (I guess they have to to remain profitable or pull out).
- account42 5y agoThat Google keeps getting fined only says that the earlier fines were not enough. They definitely are capable of playing by the rules.