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Comment by jasonkostempski | Hacker News Reader

Does it matter if that company is from EU? Even a new engine centralized in the US won't be able to operate in the EU without substantial cost. That's a pretty big market/data source to miss out on.

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I've seen the debate and some politician said that big platforms should be stopped. Which is why I thought that why not work on creating an environment that supports competition rise from the EU? But yeah, it shouldn't matter where new players come from, however I think a Chinese startup will laugh at GDPR and upload filters.

They won't laugh at the lack of revenue from European advertisers. No one cares what people use for free. This is about money.

This is ends up being effectively a tariff, though - if fewer advertising platforms can take European customers, then that allows those platforms to raise their prices for those customers, essentially meaning that European businesses end up paying more for advertising than their competitors from elsewhere.

Nothing will happen. You know that Google does second price auctions on AdWords, right? Google literally doesn't control the price of ads

Even if you pay Google €0.01 per click, you still can get an impression under certain conditions.

It's not about controlling the price, the effect works at least as well in auction conditions.

If the European ad-buyers are funnelled into a subset of ad auctions, the average prices in those auctions should be higher.

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