Being global The company has advantages. You have to make a lot of money abroad. But the biggest U.S. technology companies are finding that it also has a downside: Every country where you make money is a country that can try to control you.
It’s hard to keep track of all the technology-related distrust actions that happen around the world, because it doesn’t always seem like paying close attention. In Europe, which has long been home to some of the world’s most aggressive regulators, Google strikes alone 2.7 billion fine In 2017, a 5 billion fine In 2018, and a 1.7 billion fine In 2019. These amounts would be devastating for most companies, but they are a bit more than the roundabout error for a corporation that has reported $ 61.9 billion Revenue in the last quarter
Increasingly, however, foreign countries are surpassing slap-wrist fines. Instead, they are forcing technology companies to change the way they do business. In February, Australia Passed a law Granting news publishers the right to negotiate payments from influential Internet platforms – effectively, Facebook and Google. In August, South Korea became First country Apple and Google will have to pass legislation to force their mobile app stores to open on alternative payment systems, threatening developers with their possession at the commission of the percentages they charge. And in case of potentially huge impact, Google will have to respond to the Turkish competing authorities soon. Demand Turn off the favor of its own properties in local search results.
The consequences of such lawsuits could lead to the imposition of new rules across the country’s borders, creating natural tests that regulators in other countries could emulate. Google and Facebook, for example, have adopted Australian media bargaining codes, which could accelerate similar efforts in other countries, for example. Taiwan, Canada, And if United States. Luther Lowe, who has been lobbying for more than a decade as a senior vice president of public policy at Yelp for the no-confidence motion against Google, endorsed the incident, referring to it as a “remedy creep.”
In other cases, companies that are being forced to change their business models abroad may decide to accept the change globally before being forced to do so. Apple has made the decision following a decision by Japan’s Fair Trade Commission Implement the solutionAllowing audio, video and reading apps to link to their own websites for global payment acceptance.
“Sometimes it drives the market: companies decide that it’s too expensive to create different compliance strategies in different markets,” said Anu Bradford, a professor of international and no-confidence law at Columbia University. “Or, sometimes, it’s in anticipation of Copicat control: they know it’s there, and they’re not waiting for the Russians or the Turks to sue on their own.”
While it has not come to the same level of media attention as Australia and South Korea, it could be the biggest deal in the case of Turkey. Because that’s how Google cuts to the heart of how it uses its power as a gatekeeper for most internet traffic.
The case is known as local search, such as when you search for “restaurant near me” or “hardware store”. This is a huge category of search trafficAbout half According to some analysts, all in Google search. Critics and rivals of Google have long complained that Google unfairly uses local dominance to bring local search results to its own offers, even when it may not be the most helpful. If you do a Google search for “Chinese restaurant”, there will probably be a widget at the top of the results page called Google Onebox. This will include a Google Maps section and a few Google reviews of Chinese restaurants near you. You need to scroll down to find the top organic results that could be Yelp or Trip Advisor.
Google has disappointed critics and competitors over these dynamic years. One of the unfortunate contestants, Yelp, The lawsuit began Turkey filed a complaint with the country’s competition authority. Google argues that its local search results are designed to be most helpful to users, not to pad its own bottom line. But Turkish regulators disagreed, concluding that Google had “violated Section 6 of the Turkish Competition Act by abusing its dominant position in the general search services market to promote local search and real estate price comparison services to exclude its local competitors.” (I am quoting a translation given by a Turkish lawyer.) In April they Imposed fines About মিল 36 million. In 2020, Google averaged less than what it earned every two hours. But while the fines were trivial, the rest of the decision was not made.