3 ms·

I know this view is common in the US but the EU fines all kinds of companies - European and not - large amounts for various violations. Just 3 days ago it was

I know this view is common in the US but the EU fines all kinds of companies - European and not - large amounts for various violations. Just 3 days ago it was almost $500 million to various car manufacturers, the biggest piece to Volkswagen. https://ec.europa.eu/commission/presscorner/detail/en/ip_25_881 https://ec.europa.eu/commission/presscorner/detail/en/ip_25_... In 2021 it was $900 million to Volkswagen and BMW https://ec.europa.eu/commission/presscorner/detail/sv/ip_21_3581 https://ec.europa.eu/commission/presscorner/detail/sv/ip_21_... In 2019 it was $370 million to automotive suppliers: https://ec.europa.eu/commission/presscorner/detail/sk/ip_19_1512 https://ec.europa.eu/commission/presscorner/detail/sk/ip_19_... In 2016 it was $3 billion to truck manufacturers: https://ec.europa.eu/commission/presscorner/detail/en/ip_16_2582 https://ec.europa.eu/commission/presscorner/detail/en/ip_16_... That list keeps going. And these are just the EU actions. National governments have their own enforcement. Germany fines Volkswagen for another billion in 2018: https://www.theguardian.com/business/2018/jun/13/vw-fined-1bn-german-court-diesel-scandal https://www.theguardian.com/business/2018/jun/13/vw-fined-1b... Treating fines on US companies as a tariff means we should also count Volkswagen $4.3 billion fine for Dieselgate as a hidden tariff. Do you agree with that?

pembrook 2y ago
Yes, both Europe and the US fine companies. But specifically when it comes to tech (which is overwhelmingly US companies), there is a massive imbalance. Tariffs are one mechanism by which that imbalance can be tilted. "EU privacy regs are just laws you can choose to follow if you don't want to get fined!" Yes, and tariffs are laws you can choose to follow (by producing US market products in the US) if you don't want to get fined. Again, US companies will also need to pay tariffs on imported goods, so it's not just targeted at EU companies. It's a tariff on geographic production. I don't agree with much of this administrations policies, but to claim the EU hasn't created an imbalance in the way it extracts "fines" from US tech companies (and the incentives around that) doesn't reflect reality. AGAIN, I don't agree that either the EU fines or US tariffs are a good idea. But the logic of using a tariff to correct this imbalance is sound.
- realityking 2y ago
  You avoided the question, if fines are a trade barrier, shouldn’t we count US fines on European manufacturers as well? Of course fines on tech companies disproportionately affect US companies. They’re the biggest tech companies! If you broaden your view to look at other industries you’ll find things are much more balanced.

pembrook 2y ago

Yes, both Europe and the US fine companies. But specifically when it comes to tech (which is overwhelmingly US companies), there is a massive imbalance. Tariffs are one mechanism by which that imbalance can be tilted. "EU privacy regs are just laws you can choose to follow if you don't want to get fined!" Yes, and tariffs are laws you can choose to follow (by producing US market products in the US) if you don't want to get fined. Again, US companies will also need to pay tariffs on imported goods, so it's not just targeted at EU companies. It's a tariff on geographic production. I don't agree with much of this administrations policies, but to claim the EU hasn't created an imbalance in the way it extracts "fines" from US tech companies (and the incentives around that) doesn't reflect reality. AGAIN, I don't agree that either the EU fines or US tariffs are a good idea. But the logic of using a tariff to correct this imbalance is sound.

realityking 2y ago
You avoided the question, if fines are a trade barrier, shouldn’t we count US fines on European manufacturers as well? Of course fines on tech companies disproportionately affect US companies. They’re the biggest tech companies! If you broaden your view to look at other industries you’ll find things are much more balanced.