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Meta makes about 25% of their revenue in Europe. Norway should be about 1-2% of the European revenue, so if we take the upper end of that. Norway should be on t
by jsnell 3y ago
Meta makes about 25% of their revenue in Europe. Norway should be about 1-2% of the European revenue, so if we take the upper end of that. Norway should be on the order of 0.5% of their total revenue.
Meta's net income is about $6 billion / quarter. If we assume that revenue share translates to profit share, that means their profits from Norway are about $30 million / quarter, or about $300k / day.
So the fine is about a third of their profits from Norway. That seems like a pretty significant proportion. If such sums weren't significant, they'd not bother operating in Norway in the first place.
- ncallaway 3y agoA fine for illegal behavior that is less than 100% of the profit from that behavior, is just a tax.
- tjoff 3y agoFines that are ignored for too long typically increase or have other consequences.
- ncallaway 3y agoVery cool if that happens. Coming from a US standpoint… here it often doesn’t go that way.
- maleldil 3y agoWhy would they ignore it? If this is cheap for them, it just becomes the price of doing business as an additional tax.
- anonymousab 3y ago"ignored" in this case means "paid without correcting the behaviour". That is, if they openly just keep paying the fine instead of stopping, then the fine will continue to increase.
- HWR_14 3y agoThe real question is how much more do they make off of behavioral advertising. If it provides more than a 50% increase to revenue, they will keep it. To say nothing of the very real possibility they may opt to lose money in Norway to fight this precedent there, as opposed to in a market like Germany or France.
- shkkmo 3y ago> If such sums weren't significant, they'd not bother operating in Norway in the first place. Not necessarily, given network effects it can be advantageous to operate it some markets at a loss if the network effects from that market helps you maintain market share in your profitable markets.