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dreamlayers | 5 months ago

How is one country able to fine businesses in other countries? What legal authority or ability do they have to do anything?

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joe463369|5 months ago

I invite you to search HN for 'libor' and see how many of the American users of this website were affronted by the vast fines dished out by the US government to UK-headquartered banks for manipulating the LONDON Interbank Offered Rate from their offices in London, UK. If you can find a single one I'll eat my hat.

fulafel|5 months ago

Being a country means you can make your own laws so the authority question has a pretty clear answer. Unless you disaviow national borders and state power and such stuff generally of course. See https://en.wikipedia.org/wiki/Sovereignty

weberer|5 months ago

Read the question you're replying to again. Its a question about jurisdiction.

noirscape|5 months ago

Placing the fines is pretty easy; they just go through their legal system, finish up the case and get their judgement. Russia has a giant outstanding fine against Google for example since Google is not censoring things the Kremlin doesn't like, even though Google has no corporate presence in Russia and the fine is iirc now larger than the entire world economy. (So it's an unrealistic amount designed to deter Google more than anything else in practice.)

The difficulty is getting enforcement; in practice, what happens is that the fine is put down as outstanding and if any executive or employee of the company enters the country, they're arrested and held hostage until the company pays up (or are held directly responsible for whatever the company is accused of). Most countries usually have corporate presency laws to avoid this sort of scenario though.

Alternatively, the judgement can be enforced through diplomatic channels, but that's a giant clusterfuck and unlikely to succeed unless it's something that's very blatantly a crime in both countries, since it's effectively retrying the case. (And even then it can depend on if the country just doesn't feel like cooperating for that specific case, for no other reason than spite; France for example is fond of doing this.)

tim333|5 months ago

Arresting executives is pretty extreme and not normally done. Generally countries will only go after assets and revenues in the country.

Even for local companies. I had a UK ltd company and it got some fines for not filling in the correct forms but you can just close it down still owing money, which I did, and there's no liability for the director(s).

general1465|5 months ago

It can't, that's why they moved out.

kylecazar|5 months ago

If you do business in a country you have to operate under that country's laws and regulations, regardless of where you are registered.

Most commonly it's the EU fining American tech for GDPR violations and related privacy shenanigans.

stavros|5 months ago

Right, but the UK is saying they'll fine Imgur even after Imgur blocked access. At that point, what tooth does the fine have? "You must pay this fine if you want to, err, nothing I guess"?

beardyw|5 months ago

Thanks. That needs to be in an HN guide somewhere, along with: online services cost money to run so don't be surprised that they need either fees or advertising.

dreamlayers|5 months ago

Being accessible over the internet from a country can't be the same as having a physical presence there. Otherwise, anyone putting any content on the internet needs to comply with the laws of every single country.

prism56|5 months ago

In agreement. What's with the fines. They're not in your jurisdiction, block them or leave them.