3 ms·

Do you think there might be negative effects for other american businesses if two companies control digital advertising and collude with each other to limit com

• michaelt 3y ago
  Of course there'll be negative effects for other American businesses. But so long as the collusion has a greater negative effect for foreign businesses, and most of the money extracted from American businesses stays in America - that's more money for America. Hypothetically. At least, this is what I assume American legislators are thinking when they ignore competition issues.
  • deleted 3y ago
    [deleted]
  • nothead 3y ago
    That's not how the system works, though. Digital ads in foreign markets are foreign income, which means that there are not domestic benefits. When Google sells an ad in Saudi Arabia, that ad revenue goes to Google's local company and only benefits Google. Even though they're an American company, that revenue is not taxed or repatriated in any way. There's a current SCOTUS case about this exact question and it looks likely that it will be decided in favor of these companies to repatriate their revenue without paying a single penny in taxes. In other words: they racked up hundreds of billions in revenue and just held it overseas until they can claw it back without paying their fair share.