Re:Meta Fined $1.3B Over Data Transfers to U.S.
by detaro on Monday May 22, 2023 @06:54AM
(#36029779)
Given the creativity in accounting possible for multinationals and the difficulty in capturing value added to other areas from activities in an area that's a number with very little actual value.
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Re:Meta Fined $1.3B Over Data Transfers to U.S.
by fauxpause_ on Monday May 22, 2023 @07:00AM
(#36029818)
The accounting is not what matters. What matters is using your brain to to figure out if a fine is actually meaningful.
Comparing to revenue is a stupid way to think about things. Profit is the incentive to conduct business. Not revenue. And not global profit, but in this case Ireland/EU profits only, because that is the location fining them.
People are so eager. Every. Single. Time. To say that a fine does not matter even if it clearly outpaces multiple years of profits for the area given.
Re:Meta Fined $1.3B Over Data Transfers to U.S.
by Spivak on Monday May 22, 2023 @07:43AM
(#36030105)
> Comparing to revenue is a stupid way to think about things. Profit is the incentive to conduct business
Because it is and it isn't. Companies can make people filthy rich while not making a single dollar of profit thanks to the stock market where the price does grow, broadly, in terms of revenue.
Re:Meta Fined $1.3B Over Data Transfers to U.S.
by fauxpause_ on Monday May 22, 2023 @08:02AM
(#36030279)
You’re right in that it ought to be compared to the scale of profits, not a percentage, as many run on a loss during growth. But profit is still what matters. Including the promise of future profits.
Talking of the future doesn’t help much because both numbers will change. And punishing a company based on its future state is… not possible