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ChatGPT, Roblox to fall under strictest EU rules for platforms

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Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#11

Post by atoav »

datakan wrote: post #5

"must also file transparency reports, detail risk mitigation plans and pay an annual fee to the European Commission." This is just another shake down. Quickly becoming the least business friendly place on Earth.

With great power comes great responsibility. Beyond a certain size of corporation that may just be the only way to retain a scintilla of accountability.

But some people still appear to labour under the illusion that unchecked corporate greed will bring anything other than the end of human life on this planet.

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#12

Post by helsinkiandrew »

datakan wrote: post #5

"must also file transparency reports, detail risk mitigation plans and pay an annual fee to the European Commission." This is just another shake down. Quickly becoming the least business friendly place on Earth.

It's a maximum of 0.05% of the companies world wide income - scaled by their monthly users in the EU.

Strictly speaking OpenAI is a loss making company so wouldn't pay anything (like Amazon, Snap and Pinterest)

https://dig.watch/updates/meta-challenges-supervisory-fee-es...

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#13

Post by throwatdem12311 »

cbg0 wrote: post #6
LoganDark wrote: post #4

> Companies that breach the DSA risk fines of as much as 6% of their annual global sales. It's nuts that this is all they can manage. Like, take 30% or 40% -- that might actually encourage compliance. I think they'll comply, but almost entirely not because of small fines.

The point of fines is to correct bad behavior, not to bankrupt businesses which create jobs.

6% of sales is just “cost of doing business”.

Sometimes it’s more profitable to eat the fine than change your behaviour.

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#14

Post by benoau »

karmelapple wrote: post #10
cbg0 wrote: post #6

Earlier quoted context omitted.

The point of fines is to correct bad behavior, not to bankrupt businesses which create jobs.

6% is the cost of sales tax in some places. That is not considered any kind of correction to bad behavior - it's literally the cost of buying goods in a variety of places. I'd strongly argue that 6% will not correct bad behavior. What corrects bad behavior? The threat of serious consequences to a business.

For Roblox their 6% of global turnover ($5b) is $300m which while it seems trivial, is 30% of their profit ($1b).

For a company like Google this fine would be in the vicinity of $24 billion, which would be a bit over 20% of their annual profit.

So for companies that have to answer to shareholders this is already a pretty big deterrent, but just in case if they reject compliance it becomes a periodic penalty!

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#15

Post by ben_w »

karmelapple wrote: post #10
cbg0 wrote: post #6

Earlier quoted context omitted.

The point of fines is to correct bad behavior, not to bankrupt businesses which create jobs.

6% is the cost of sales tax in some places. That is not considered any kind of correction to bad behavior - it's literally the cost of buying goods in a variety of places. I'd strongly argue that 6% will not correct bad behavior. What corrects bad behavior? The threat of serious consequences to a business.

> 6% is the cost of sales tax in some places. That is not considered any kind of correction to bad behavior - it's literally the cost of buying goods in a variety of places.

6% of annual, global sales, as an extra cost from one jurisdiction, which can impose this multiple times if there are multiple breaches, and where they're not the only jurisdiction with such rules, and the DSA isn't the only ruleset where fines are based on global revenue even in the EU (famously, GDPR).

Or, to put it another way: 16 such fines in one year and you've lost 100% of your revenue. You don't get to make up for this by raising prices, because that just means "100% of your revenue" is now a bigger number.

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#16

Post by luke5441 »

LoganDark wrote: post #4

> Companies that breach the DSA risk fines of as much as 6% of their annual global sales. It's nuts that this is all they can manage. Like, take 30% or 40% -- that might actually encourage compliance. I think they'll comply, but almost entirely not because of small fines.

Note that this is of "sales" not of profit. So for OpenAI this would be 1.5$ billion. ( based on recent PR spin sales number)

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#17

Post by himata4113 »

Roblox should be outright banned in the EU or at least the top 100 games all qualify for what would be considered lootboxes/gambling and generally predatory behavior. Basically every single action you can do has a "robux" alternative which is faster/better + boosts cost robux. Then there's the worst of them all: trading card games.

Another problem is that nothing carries over between games so as the algorithm shifts you're forced to spend robux all over again.

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#18

Post by cbg0 »

karmelapple wrote: post #10
cbg0 wrote: post #6

Earlier quoted context omitted.

The point of fines is to correct bad behavior, not to bankrupt businesses which create jobs.

6% is the cost of sales tax in some places. That is not considered any kind of correction to bad behavior - it's literally the cost of buying goods in a variety of places. I'd strongly argue that 6% will not correct bad behavior. What corrects bad behavior? The threat of serious consequences to a business.

That 6% could be more than your profit margin, depending on what business you operate. There's nothing saying that fines can't keep coming if your behavior isn't corrected, it's not just one fine then they leave you alone.

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#19

Post by vorpalhex »

poisonborz wrote: post #7
datakan wrote: post #5

"must also file transparency reports, detail risk mitigation plans and pay an annual fee to the European Commission." This is just another shake down. Quickly becoming the least business friendly place on Earth.

For billion dollar US megacorporations? Yes, it better be, finally (even though this is a slap on the wrist they will pay). Look at China's rules for internet companies there. Or how friendly the US was with TikTok.

It mostly just seems like the EU is becoming China.

Soon they will have to firewall off most of the internet. After that comes VPNs.

At least the EU is unlikely to agree on voting anyone in as a leader for life.

Re: ChatGPT, Roblox to fall under strictest EU rules for platforms

#20

Post by Liquid_Fire »

helsinkiandrew wrote: post #12
datakan wrote: post #5

"must also file transparency reports, detail risk mitigation plans and pay an annual fee to the European Commission." This is just another shake down. Quickly becoming the least business friendly place on Earth.

It's a maximum of 0.05% of the companies world wide income - scaled by their monthly users in the EU. Strictly speaking OpenAI is a loss making company so wouldn't pay anything (like Amazon, Snap and Pinterest) https://dig.watch/updates/meta-challenges-supervisory-fee-es...

It doesn't matter if you're losing money on paper, since the fee is on sales, not profit.
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