Alibaba’s Singles Day Reaps $38.3B, Dwarfing Black Friday

On November 11, Chinese e-commerce giant Alibaba brought in nearly $38.3 billion worth of goods in the 24-hour period known in that country as Singles Day. That surpasses last year’s Singles Day that bought in $30.8 billion. Both figures dwarf the numbers for Black Friday, the massive commercial day-after-Thanksgiving sale in the U.S. Alibaba invented Singles Day ten years ago and, since then, has become a tech giant along the line of Amazon or Alphabet. China also has become wealthier and more digitally connected. Continue reading Alibaba’s Singles Day Reaps $38.3B, Dwarfing Black Friday

OECD Aims to Regulate Where Online Companies Pay Taxes

The Organization for Economic Cooperation and Development (OECD) has devised a proposal to prevent digital giants such as Amazon, Apple and Facebook from avoiding paying taxes. The proposal, which would allow countries to tax such big multinational firms even if they did not operate there, would enable new taxes on all kinds of multinational companies — not just tech firms — that operate online. As of now, many of these digital companies avoid heavier taxes by moving profits to countries with low tax rates. Continue reading OECD Aims to Regulate Where Online Companies Pay Taxes

Incoming EU Commissioners Plan Tax for Digital Companies

Impatient with the slow pace of overhauling corporate taxation to better represent the real profits of international digital companies, European Union commissioners propose that the EU agree on a tax if no global decision is reached by end of 2020. Up until now, individual countries have crafted different approaches to taxation. In France, former digital affairs minister Mounir Mahjoubi said he may file an amendment to a budget bill forcing these same Internet behemoths to reveal how much profit they make in the country. Continue reading Incoming EU Commissioners Plan Tax for Digital Companies

U.S. and France Ink Agreement on Digital Tax of Net Giants

The U.S. and France agreed to a 3 percent French tax to be applied to services from large Internet companies. The agreement specifies that France will repay these companies the difference between its digital tax and the taxes currently under development at the Organization for Economic Cooperation and Development (OECD). French President Emmanuel Macron, at a joint press conference with President Donald Trump, said they had reached a “good agreement,” but that he prefers international taxes on digital services. Continue reading U.S. and France Ink Agreement on Digital Tax of Net Giants

Microsoft Experiences Robust Growth With Intelligent Cloud

Much of the focus has been on Amazon, Facebook and Google in recent weeks, obscuring the fact that Microsoft is in fact the largest tech company and the largest publicly traded company, with a market capitalization if $1+ trillion. Its quiet success continued with the company’s latest quarterly report indicating sales grew 12 percent to $33.7 billion. The company also enjoyed $13.2 billion in profits in the same quarter, in part due to $2.6 billion in one-time tax benefits and inked its “largest commercial deal ever” with AT&T. Continue reading Microsoft Experiences Robust Growth With Intelligent Cloud

European Union Hits Qualcomm With Another Antitrust Fine

For the second time in 18 months, the European Union levied a fine on Qualcomm, this time for €242 million ($272 million). European commissioner for competition Margrethe Vestager stated that Qualcomm drove a competing supplier of baseband chips out of business, an antitrust violation. The EU started its formal investigation into Qualcomm in 2015, when U.K. chip manufacturer Icera accused it of “predatory pricing” between 2009 and 2011, to drive it out of business. Nvidia subsequently purchased Icera. Continue reading European Union Hits Qualcomm With Another Antitrust Fine

The European Union to Investigate Amazon’s Data Practices

European Union competition commissioner Margrethe Vestager has just opened an inquiry into whether Amazon unfairly uses data gleaned from third-party sellers. The investigation has no deadline and could go on for years. At issue is whether Amazon has an unfair advantage by selling its own goods on the site, in competition with its third-party sellers. Amazon stated it will “cooperate fully” with the investigation as well as “continue working hard to support businesses of all sizes and help them grow.” Continue reading The European Union to Investigate Amazon’s Data Practices

France Inks Law to Tax Tech Firms, U.S. Threatens Probe

France’s Senate has approved taxing Amazon, Google and other large technology companies, despite the threat of a U.S. probe into discrimination. In fact, the vote came hours after U.S. trade representative Robert Lighthizer said he would investigate the French legislation based on the same law President Trump used in the trade clash with China. French finance minister Bruno Le Maire responded that, “France is a sovereign state. It makes sovereign decisions on tax matters and will continue to make sovereign decisions on tax matters.” Continue reading France Inks Law to Tax Tech Firms, U.S. Threatens Probe

Spotify Brings Beef Against Apple to European Commission

Spotify filed a complaint with European regulators accusing Apple of violating antitrust laws by crushing companies that compete with its services, including Apple Music. Apple charges a fee of up to 30 percent on anything sold in its App Store. Spotify reported to the European Commission that Apple’s policies are a “tax” that violate competition laws, and chief executive Daniel Ek complained that Apple gives itself “an unfair advantage at every turn.” It is uncertain if the complaint will lead to a formal EC investigation. Continue reading Spotify Brings Beef Against Apple to European Commission

U.K. Considers Big Tech Regulation in Preparation for Brexit

The U.K. government released a 150-page report stressing that the country needs to update its antitrust policies to deal with big technology companies. The report, which was ordered by the U.K.’s top treasury official, Exchequer chancellor Philip Hammond, states that the U.K. should implement tighter rules on acquisition in the tech sector to make it easier for new competitors to arise. The European Union and U.S. presidential hopefuls Senator Elizabeth Warren and Senator Amy Klobuchar have expressed similar points of view. Continue reading U.K. Considers Big Tech Regulation in Preparation for Brexit

France Slated to Impose Tax on Digital Companies’ Revenue

The French government introduced a three percent tax on the revenue of technology companies such as Google and Amazon that offer e-commerce or targeted advertising in France. Experts estimate that the tax could reap “billions of dollars” from Silicon Valley companies. The tax is also likely to come up as a topic of conversation in U.S. and European talks, convened by the Organization for Economic Cooperation and Development (OECD), about corporate taxes in the digital age. Europe is pushing to tax Silicon Valley companies on profits made there. Continue reading France Slated to Impose Tax on Digital Companies’ Revenue

Apple Agrees to Pay Large Amount in Back-Taxes to France

Apple revealed it has reached a deal with French authorities to pay back-dated taxes, reportedly in the hundreds of millions of dollars. Apple’s French division did not disclose the specific amount, but French media has reported it to be around 500 million euros, or $571 million U.S. “As a multinational company, Apple is regularly audited by fiscal authorities around the world,” explained Apple France in a statement. “The French tax administration recently concluded a multi-year audit on the company’s French accounts, and those details will be published in our public accounts.” Continue reading Apple Agrees to Pay Large Amount in Back-Taxes to France

Amazon Is Reportedly Splitting HQ2 Between Two Locations

Amazon has finally made a decision regarding its second headquarters, according to individuals familiar with the process. Following a yearlong search that involved numerous cities in North America vying for Amazon’s business, the company is reportedly planning to split the headquarters between two East Coast locations — the Long Island City neighborhood of Queens in New York and the Crystal City area of Arlington, Virginia. While it already has more employees in the two regions than anywhere else outside of its Seattle home base and the Bay Area, Amazon is expected to have a total of 50,000 employees between the two locations once the headquarters are completed. Continue reading Amazon Is Reportedly Splitting HQ2 Between Two Locations

Sanders’ Proposed Tax Bill Aimed at Amazon and Jeff Bezos

Sen. Bernie Sanders (I-Vermont) introduced a bill to tax big companies whose employees need federal benefits to stay afloat. In doing so, he targeted Amazon founder/chief executive Jeff Bezos, who, said Sanders, “could play a profound role” by ensuring his employees earn a living wage. “This would not only improve lives for thousands of people at Amazon; it would send a message to every corporation in America that that’s where we should be going as a nation,” said the senator, whose bill is co-sponsored by Rep. Ro Khanna (D-California). Continue reading Sanders’ Proposed Tax Bill Aimed at Amazon and Jeff Bezos

Some Developers Fed Up With Apple, Google App Store Taxes

Apple and Google are getting pushback from such companies as Netflix, Epic Games and Valve that have complained the tech behemoths collect too high of a tax for residing in their app stores. The number of such complaints has risen significantly, and new ways of reaching users has led some companies to avoid app stores altogether. That, combined with competition from those new sources and regulatory scrutiny threaten what has thus far been a source of billions of dollars in revenue for Apple and Google. Continue reading Some Developers Fed Up With Apple, Google App Store Taxes

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