for context, that's 0.04% of the profits Amazon earned in France alone (€9B) in 2022.
this post was submitted on 24 Jan 2024
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Which if my math is correct, at an average US household income of $75k that is equivalent to a whopping $30.
As always, when the fine is less than the extra profits earned by breaking the law that's just the cost of doing business. Until these fines are like 10x+ the extra profits earned this is going to be the normal.
I've always advocated for fines to be assessed as a percentage of global annual revenue.
"Oh, your global revenue was $100B? That will be $1b please."
EU takes 10% of the profits if rules like GDPR and other Digital acts are breached.
But only at the first offence. The second time they take 20%.
its €10M or 2% turnover whichever is higher, doubling for more sever infringements. Fining based on turnover is the way to go as it eliminates wriggling out of fines and makes them hurt.
The fines need to be large enough to upset the shareholders if they are going to have any effect.
I'd say that the board members also have to have some personal liability (criminal of course, but also limited financial liability and a temporary or permanent ban on serving on any board or executive (legally responsible) position, depending on circumstances. Incentives must be aligned, and not something that they can justify as a cost of doing business.
It's much less than paying for a parking ticket for a private citizen (cost relative to income).
Basically a mockery of the entire thing.
MAKE FINES HURT.
Oh no, however will Amazon recover from having to pay the equivalent of checks notes a cinema ticket?
They already put ads on Prime Video now and charge $2.99 a month to remove them. Expect it to be higher in a few months if they have to pay this.
Expect it to be higher in a few months ~~if they have to pay this.~~
they will charge the maximum amount they can, regardless of costs. they always have.
$35 million
Très petit
It's France and the EU on one side, American business practice on the other.
I don't want to start a political drama but.... What's the French or EU equivalent and why isn't it as popular? Or is it? I honestly don't know but keep asking the question why is Amazon (or Google for that matter) so dominant in their markets even outside the US?
For all the same reasons it's dominant in the US?
Higher barrier to entry and there's honestly just too much money in USA (I don't know how else to say it lol, hope you understand). The amount of efforts required to be even considered underdog against Amazon is stupendously high.
In the Netherlands we have bol.com that is generally more popular for online shopping, but in other countries amazon entered the market pretty early.
I've only tried Amazon a few times, but it doesn't really seem like a quality service so who knows 🤷
They'll have made that back several times over in the time it took them to send them the fee
'tis but a business expense
Except that they will obviously fine them again and again and again until they comply.
The max fine that can be imposed in such circumstances are enormous.
It also scares other companies from attempting the same bullshit.
This is the best summary I could come up with:
The French Data Protection Authority, also known by its acronym CNIL, said the system allowed managers at Amazon France Logistique to track employees so closely that it resulted in multiple breaches of the European Union’s stringent privacy rules, called the General Data Protection Regulation.
“We strongly disagree with the CNIL’s conclusions, which are factually incorrect, and we reserve the right to file an appeal,” Amazon said.
“Warehouse management systems are industry standard and are necessary for ensuring the safety, quality and efficiency of operations and to track the storage of inventory and processing of packages on time and in line with customer expectations.”
The watchdog’s investigation focused on Amazon employees’ use of handheld barcode scanners to track packages at various points as they move through the warehouse, such as putting them in crates or packing them for delivery.
Seattle-based Amazon uses the system to manage its business and meet performance targets, but the regulator said it’s different from traditional methods for monitoring worker activity and puts them under “close surveillance” and “continuous pressure.”
The system is used to measure employee productivity as well as “periods of inactivity,” but under EU privacy rules, “it was illegal to set up a system measuring work interruptions with such accuracy, potentially requiring employees to justify every break or interruption,” the watchdog said.
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