4 ms·
> From Amazon’s perspective there’s no significance to the fine’s relationship to UK revenue. This is false. Amazon has the option to stop doing business in th
by throw10920 4y ago
> From Amazon’s perspective there’s no significance to the fine’s relationship to UK revenue.
This is false. Amazon has the option to stop doing business in the UK, meaning that they lose the revenue, but are not longer to subject to fines from the UK's court system. Amazon very clearly balances the expected costs of doing business in a particular market with the expected benefits.
Similarly, Amazon's use of the practice globally means that they are subject to fines from every market that they operate in. Which you did not count.
> the practice has been ongoing and the calculation of revenue hit should be amortized over the years since inception and discounted for the time value of money
These fines impact Amazon's decision of whether to continue to do the practice today. If the fines start to eclipse their current revenue, it literally does not matter if they'll still have made more money by doing it in the past - they'll cease the activity. Therefore, taking past revenues into account is irrelevant and dishonest.