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EU antitrust fine reduces Google's profits by 28%

Discussion in 'BlackHat Lounge' started by MisterF, Jul 25, 2017.

  1. MisterF

    MisterF Jr. VIP Jr. VIP

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    Google's parent company Alphabet revenues surged by 21% to $26bn (£19.9bn) in the second quarter of 2017 but the European Union's record breaking €2.4bn fine cut profits by 28%.

    Google’s advertising revenues were up 18.4% to $22.7bn, suggesting the company suffered little as a result of the brand safety concerns that led a series of brands saying they were going to pull their advertising earlier this year.





    http://www.campaignlive.co.uk/article/eu-antitrust-fine-reduces-googles-profits-28/1440348
     
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  2. blogzandstuff

    blogzandstuff Elite Member

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    And there are more investigations to come yet
     
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  3. Massacre

    Massacre Regular Member

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    Oh, poor guys. let's collect some money and deposit to Google's wallet.
     
  4. umerjutt00

    umerjutt00 Jr. VIP Jr. VIP

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  5. Ife

    Ife Newbie

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    Google's always beating the odds!
     
  6. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    The EU was "planning" years ago to launch their own state funded search engine (billions of euros in cost). Guess how that ended :D Now they act like sore losers and just find excuses to poke at G.
     
  7. roki4ka

    roki4ka Senior Member

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    A lot will be investigated - not only this. And a lot more fees they will pay.

    I don't care about this, directly.

    The thing that I care is how will this fine (and others) affect me, as a publisher in Adsense?

    a) Will they start cutting a nice % for invalid clicks?
    b) Will they start huge ban waves just before payments?
    c) Will they lower the requirements of their policy to attract more people and to lower the current ban rate, at least before 2018 (when Chrome 2.0 comes)?
    d) Maybe they won't do anything at the moment and will wait for their Chrome 2.0 in 2018 and will kill most of the other ad networks and steal their publishers... And because they will be absolute monopoly they will make their policy even more strict than before.
     
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  8. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Poor Google I feel bad for them.

    Or maybe Google broke the laws of the EU.
     
  9. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    Laws are made with enough wiggle room so that can be "interpreted" on a per case basis when "required" by those in the head of the machinery.
     
  10. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    C'mon jazzc there's no conspiracy here. Their business practices are beyond questionable. They'll be in trouble in the US soon too, not because someone higher up hates them, but because the antitrust case against Google is much stronger than the famous one brought against Microsoft years ago.
     
  11. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    There certainly is no conspiracy. Brussels hate Google with all their spirit and they're not shy about it. So they poke at it whenever possible and get some billions.
     
  12. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Why would a State-level institution "hate" a corporation? Not like they're two teenagers fighting in school.

    The reason regulators are concerned about Google can easily be researched online, specifically, off the top of my mind:
    • Unlimited user tracking. They are tracking every click, every link, every human interaction in the WWW. Their browser is essentially a lab mouse tag. When you use Chrome and Android phones you're a mouse lab.
    • Google has shown political bias recently, taking down sites with which they disagreed politically. They always said they were unable to do this. We SEOs knew it was a lie all along, they do target people specifically.
    • Controlling 85+% of search does qualify them for antitrust measures. Anything so relevant as WWW search with more than 85% market share will call for regulators to investigate no matter if in the US or EU.
    • The conflict of interest with their affiliations with sites linked from the SERPs call for antitrust review. The biggest spenders rank highest - this is akin to bundling Internet Explorer with Windows OS.
    • Their participation in Prysm NSA spying program is serious enough it should call for a Congressional grade investigation in the US.
    • Their gender discrimination is already a serious issue with US authorities.
    And the list goes on and on. This is just off the top of my mind right now. There is ample room for an obligatory split of Google's search and other operations, they are well into antitrust territory in all cases.
     
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  13. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    Google isn't "a" corporation (and btw, the EU isn't a state-level institution, it's an empire-level institution - or super-state if you like - but that's not relevant here). Google is a titan-corporation whose revenue surpasses the GDP of some of EU's member states.

    Not only Google isn't "a" corporation, it's a non-EU controlled corporation.

    Not only Google isn't "a" corporation and a non-EU controlled corporation, it's a US-controlled corporation (huge difference for the Eurocrats).

    Not only Google isn't "a" corporation and a non-EU controlled corporation but instead a US-controlled corporation, it also controls a huge chunk of online information.

    Not only Google isn't "a" corporation and a non-EU controlled corporation but instead a US-controlled corporation, it also controls a huge chunk of online information, it has deep ties with the US government sector while the EU is not invited to that party.

    Add to the mix the ideological orientation of the Brussels apparatus and it's really clear.
     
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  14. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    Nah they deserve a full ban.
     
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  15. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Exactly. And you've just described a perfect case for antitrust regulation. Corporations aren't supposed to have deep ties to government, nor should they control most online information.

    Most importantly: Google is tax exempt in Ireland and uses the EU for profits. The EU is a tax haven for Google and Google loves it very much. So it's not like the EU is a leech and Google is a victim here, Google makes billions from the EU.

    Brussels is just applying the laws. Google benefits from those laws by being tax exempt in Ireland. You can't have the cake and eat it too, Google is not above the law.
     
  16. Sherbert Hoover

    Sherbert Hoover Jr. Executive VIP Jr. VIP

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    $2.3 billion is a drop in the bucket for Google regardless. I read something earlier that stated Google was able to reduce that fine to a simple footnote in their financials.

    They're going to play it smart and weigh the cost and benefits of splitting operations to avoid both antitrust and blatant monopolization of sectors. Being a US-based company, they are already treading close to "Standard Oil in 1890" territory. A similar situation occurred to Standard over 100 years ago, in which they split their one corporation into a multinational conglomerate/holding company in order to avoid these kinds of legislation.

    The exact same base reason Alphabet came to be a few years back.

    Google is following a similar pattern to Standard, just in a completely different field. Google is also capable of doing far more cross-industry branching out as a result of their positioning. Again, just like how in the 1800's "whoever controls the oil controls the world", in our current era, the same can be said for Google and their data/search capacity.

    There are many parallels that can be drawn between Rockefeller's company and Brin/Page's.
     
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  17. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    You're right, both are companies tied to US national security, both are growth phenomenons and incredibly successful businesses.

    Except oil can't be substituted easily whereas Google's products are one click away from competition. The information age is much more unforgiving. Things in Rockefeller's time happened over decades, but today it's a matter of minutes for the hordes to leave a product and go elsewhere.
     
  18. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    Funny how the Eurocrats don't agree with you, judging by their actions.

    Those tax laws didn't write themselves. Last time I checked, government write them. You're arguing that following the laws is bad.

    a) Brussels MAKES laws. They create directives and the countries are required to sign them into local laws (it's more complicated than that but for our purposes it's fine).

    b) As I said, laws are made with enough wiggle room so that the can be selectively "interpreted" on a per target basis when the Eurocrats deem it necessary. If you don't see anything wrong with that, then I guess we have different views about justice.
     
  19. darulez

    darulez Jr. VIP Jr. VIP

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    I honestly would want to know what they do with that money..

    buy secret properties on Mars or the Moon? Build time machines? Or warp engines?
     
  20. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    I'd surely be concerned if it was something arbitrary. If mom and pop shops were being punished by the EU just for being American, for example. But that's not at all what's happening here. The EU is doing what the US regulators themselves should have done long ago IMO.