Price fixing laws are virtually the same in Europe as they are in the US...price fixing, colluding, and cartels are illegal. If they did the same in the US, they would be fined just the same.
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French Regulators Fine Apple $1.2 Billion for Anti-Competitive Behavior
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I always thought that this was normal... that is, distributors cannot lower/increase prices than what the manufacturer says - preventing a 'race to the bottom' - not saying it's right or wrong.
I always thought that car manufacturers practiced this since the 1950's... to ensure a healthy profit and limit competition amongst authorized car dealerships, they would make the dealers abide by a certain price or price range... and then reward the dealers with kickbacks after they hit a certain volume (to compensate for removing the ability to lower/increase prices). This prevents competition among distributor or dealers.
This ensures that new cars are roughly the same price regardless of which dealership you go to; and prevents dealers from cannibalizing each other.
I always thought that car manufacturers practiced this since the 1950's... to ensure a healthy profit and limit competition amongst authorized car dealerships, they would make the dealers abide by a certain price or price range... and then reward the dealers with kickbacks after they hit a certain volume (to compensate for removing the ability to lower/increase prices). This prevents competition among distributor or dealers.
This ensures that new cars are roughly the same price regardless of which dealership you go to; and prevents dealers from cannibalizing each other.
It's the French equivalent to FTC which also fined Apple for price fixing e-books.
https://en.m.wikipedia.org/wiki/United_States_v._Apple_Inc.
The fine is probably not an issue for Apple.
What will be an issue for Apple is forcing them to change their business model because of this ruling.
What will be an issue for Apple is forcing them to change their business model because of this ruling.
Yes at their own discretion, it's a lot rarer these day but does happen, if you ask on certain watch models you might get 10%-15%.
I think you answered your own question in the 2nd line of your own posting LOL and how it impacts consumers
I wonder when US tech companies will start abandon EU. -Then they can start sue Huawei and see how that goes...
Not that I say it is correct what the US tech companies do or don't do, as I do not have any valid insights at all. But I can imagine they one day says enough is enough.
Not that I say it is correct what the US tech companies do or don't do, as I do not have any valid insights at all. But I can imagine they one day says enough is enough.
2014 Mac Mini and 2013 Mac Pro trash can for 4 and 3yrs respectively as minor examples. Now Apples repsonse is complaining this breach of consumer law is founded 10yrs old yet stating some crap 30yrs ago lol come one Apple get your excuse straight.
I don’t think Apple will win this one as they’ve done this in the past elsewhere (this accusation).
we shall see though, we shall see.
Yeah. With that kind of attitude, you'd be running a trillion dollar company very quickly into the ground.
You don't like European ethics, laws and business rules? Then don't enter the European market and see how you would become a trillion dollar company without European business. Unlike everything you might believe: Apple is --not-- a supplier, vendor or manufacturer of key technologies, they simply sell popular but non-essential consumer gadgets. Except for all the marketing tam-tam, most people wouldn't even notice if they went out of business. They are not remotely as important as Microsoft or Intel or AMD. Yes, there is an ecosystem around their products, but there is also an ecosystem around Coca-Cola. People would have to find new jobs and business partners, but it wouldn't be the end of the world. And someone else would QUICKLY fill the gap.
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Arrogance comes before the fall. Chinese companies must obey the same rules in the European market as any other company, regardless of their origin, and if they want to stay in business, they must accept the local legal system.
What makes Americans think that they are above the laws of the countries they want to do business with?
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Smiling a bit as I noticed you are from Germany
Rule and order... although following the rules are subjective, at least if you ask around in some regions of the automotive industry. -Talking about being above the emission laws, so one could ask why do the Germans thinks they are above the legal systems in the countries they want to do business with? I agree arrogance comes before the fall!I don't think you get my point though. If US tech companies decided to walk out of EU, based on "Well, EU is too complicated all around and the benefits in earnings due fines etc. Then what would happen? Do you really think China obey, was there in 20 years (manufacturing etc) and they do as they please. If EU, say Germany, push China then China push back on all the Germans who manufactures in China... -happened before.
I wish these authorities did the same with every industry and not just the tech industry.
Ever heard of Luxotica? If not then search for them. Pepsi, De beers all of these companies are the same.
Smiling a bit as I noticed you are from Germany
I don't think you get my point though. If US tech companies decided to walk out of EU, based on "Well, EU is too complicated all around and the benefits in earnings due fines etc. Then what would happen? Do you really think China obey, was there in 20 years (manufacturing etc) and they do as they please. If EU, say Germany, push China then China push back on all the Germans who manufactures in China... -happened before.
Very good point. If arrogance is the main issue here then the EU is being arrogant as well to mess around with a company that’s worth more than the GDP of some of the countries in the EU.
I don’t understand why people forget that these companies exist to make profit. They’re not charity. They’ll do what’s best to make more and more money. There’s nothing evil / wrong about it.
I completely agree with you.
It is a political issues as EU is lefty, and quite a bit, why US is not in favor and need to be punished as the capitalistic evil (well at least until they need our help....). Funny thing is EU think they are an important market but as you say, the GDP shows reality and not so important.
Now it could be so, that the fines will be used to pay the US back for what is owed due to lack of EU's shortage of NATO contributions. -who knows.
To reiterate, it would be interesting to see how things would work out if the big Tech from US backed out of EU. Including the licensing of patented soft and hardware. -Then on the other hand being kindly civic and offer EU Windows 7, MacOS X 10.10 MS Office 2010 etc. While keeping the rest of the world on the latest edition and version. Think that would be interesting to see, in theory, as a counter strike on the European arrogance and selfperception of being important.
As do many, far too many of these large companies act with impunity. They should all be held far more accountable for their actions
Q-6
Think of petrol fuel companies across the world following each others prices with a few cents distance.
Telco’s ....etc.
1.23 billion is outrageous - rather have that money go to fight covid19 - develop tests kits to everyone