3 ms·
On a global scale it's tiny, but on a regional scale it could really impact profitability. Assuming 85% of Norwegians have an account: * 98,500 a day = $35 mil
by Closi 3y ago
On a global scale it's tiny, but on a regional scale it could really impact profitability. Assuming 85% of Norwegians have an account:
* 98,500 a day = $35 million per year
* $35 million / (5 million Norway population * 85% assumption) = $8 / year fine per Norway user.
* I can't find Norway-specific revenue, but Meta's average revenue per user is $18 across Europe, but Norway could be higher than average. Outside Europe the highest is USA at $60. Assuming revenue / user is half way between this - $39 - this fine would be 20% of revenue.
* $39 per user would mean total revenue of $200m in Norway.
* Facebook turns 32 billion of revenue into 7.79 billion of net profit (24% of revenue to Net profit). This would mean profit of c£47m in Norway before the fine, and $12 billion after-fine.
This is with a fairly optimistic view of revenue per user - at the Europe average of $18 per user it would be a loss of $13m.
Another way to look at this is that if you population-adjust the fine to the world, it would be c$60 billion per year (although this is less accurate as it does not account for the fact that many regions have less users or are less profitable). Either way, Facebook can handle these fines in a handful of regions, but they can't handle these fines in all regions.
- phatfish 3y agoIt also feels like each country going after them using their own local GDPR enforcement (or equivalent) is better than some EU level action (if that is even possible). It ties up Meta resources having to make more legal challenges, and it probably happens faster as well. Just need EU countries to work together in a coordinated way so it starts having an effect on quarterly results. Rather than each fine being picked off one at a time.
- kreetx 3y ago"happens faster" is the advantage, since it will tie up resources in local jurisdictions as well.