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Comment by wongarsu | Hacker News Reader

> If there are no consequences, why don't US tech companies just completely ignore it?

Once you grow big enough the EU will inevitably have leverage over you: Servers rented in the EU to lower latency, payment streams from EU customers, offices in the EU to get talent, subsidiaries created for tax reasons, executives on vacation, employees on conferences, money spent on advertising, etc.

If you are a startup in SV the EU migh not have much direct pressure it can apply, but how would an investor react when given the choice of "we could spend some more money now, or we could do nothing and be significantly limited once we grow to a certain size, basically unable to do anything significant in one of the largest economies of the world".

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> how would an investor react when given the choice of "we could spend some more money now, or we could do nothing and be significantly limited once we grow to a certain size, basically unable to do anything significant in one of the largest economies of the world"

The simplest solution would be ignore GDPR, dominate the American market (which is easier to scale across than the EU), and then use that momentum to launch a simplified version in Europe. (Or buy a competitor.) The scale advantage will almost always outweigh being prepared for multi-market growth from the beginning.

Which gives ample room for a European competitior that does adhere to GDPR to clean up the EU market. We live in a very globalised world and the EU knows the leverage it has -- just as the US knows it's soft power extends well beyond her borders.

> Which gives ample room for a European competitior that does adhere to GDPR to clean up the EU market

Agreed. My point was with respect to an American start-up—compliance with GDPR is of lower priority than scaling. The priority, for both, should be scaling.

Advantage goes to the American start-up, however, in launching from a single market. But one might counter-argue that consumers in e.g. China will prefer to do business with European start-ups over American ones due to GDPR. (No evidence for that. But it’s a valid hypothesis.)

Not to mention that avoiding GRPR, laws that shouldn't need to have been written in the first place, is like walking around with a big sign 'we are evil and not to be trusted'. Because if you are to be trusted, a simple cursory check would simply affirm you are already within the GDPR.

We work in the b2b in the financial sector and part of our contracts in Europe is that all of the data is hosted in infrastructure that complies with the GDPR. That could be Google or Amazon, but not Slack or any SV startup.

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