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> Here's a better option that Google will more likely follow; simply build the fines into operation costs and bill that to EU customers or maybe all Google cust
by overfeed 1y ago
> Here's a better option that Google will more likely follow; simply build the fines into operation costs and bill that to EU customers or maybe all Google customers looking to serve ads in the EU.
Google applying tariffs to itself in Europe might be something the EC may a) investigate and fine Google for ripping off Europeans, and/or b) approve of; they previously considered a big-tech tax to improve competition in Europe. Google would be doing them a favor, and Trump won't send them a nastygram this time around.
- nonethewiser 1y agoWhy would you classify this as a tariff? >build the fines into operation costs and bill that to EU customers or maybe all Google customers looking to serve ads in the EU.
- lucketone 1y agoTariff’s usual goal is to increase the price to reduce competitiveness. My guess is that exactly this similarity coupled with a pinch of humour, was what caused op to classify it as such.
- overfeed 1y agoIt was tongue in cheek, since only governments can effect actual tariffs. However, the consumer effects of a "tax" or surcharge on a foreign service applied to a specific jurisdiction are indistinguishable from a tariff. The only difference is the money doesn't go to the government treasury - in any case, that's not the reason most governments introduce tariffs. If Google were to introduce a Europe surcharge, they'd be ironically in alignment with Brussels.
- nonethewiser 1y agoThere are a lots of examples of geo-based pricing that I dont think you'd consider a tariff. Cloud services, Uber, Spotify subscription, etc. They cost different things based off the country you are in. I guess you could try to distinguish between why they cost different prices in different countries and in some cases it's largely purchasing power parity, but others it absolutely is operational cost differences, such as cloud services. Uber is a bit more mixed - there are definitely purchasing power differences but there are also different regulatory requirements. All that is to say you could never really tease it all out perfectly in practice.
- overfeed 1y ago> All that is to say you could never really tease it all out perfectly in practice. Sure, if the folk at Google that coordinate this hypothetical Euro-fine surcharge entirely in person with no paper trail and are confident there will be no whistleblowers. No oversight body with subpoena powers needs to "tease out" any information, they'll directly request the pricing formulas, related emails and underlying data for 2015-2025 and cross-check with consumer payments.