Brother Lei explained the situation to him.
The person in charge of the European Union's Antitrust Department who had their eyes on Da Mi and decided to issue a huge fine was a woman named Margaret Vestager.
She became the European Union's Antitrust Commissioner in 20X4, but no one paid any attention to this woman at first.
However, this old woman had only been in office for a few years, and a large number of Silicon Valley bigwigs had fallen into her hands.
As soon as she took office, she set her sights on Google and launched an antitrust investigation on the company.
But for a tech giant like Google, they had connections and knew how to deal with the governments of various countries. If you sued them for "monopoly", they would accuse you of "suppressing the economy". It was easy to imagine how difficult it would be to force such a giant to submit.
However, the development of the situation soon shocked everyone. After a six-month investigation, Margaret produced conclusive evidence and issued a sky-high fine of 54 billion RMB, which was about 10% of Google's revenue that year. Yet, Google's executives had no choice but to admit defeat and pay the fine.
The shareholders of Google were heartbroken. It was more painful than cutting their own flesh. They hated Margaret, the old witch.
After ruthlessly ripping off Google, Margaret turned her attention to another giant, Fruit Company. Not long after, another super fine of 110 billion RMB was issued, causing another uproar in the technology circle.
Fruit Company struggled hard. CEO Cook went to the European Union many times to negotiate, but to no avail. In the end, they obediently paid the fine.
After that, Margaret, who was getting stronger and stronger, fined Amazon, Facebook, Qualcomm, and other giants one by one. The accumulated fine exceeded 38 billion EUR, which was about 304 billion RMB.
It was rumored that there were no fines that Margaret could not issue, only companies that she was too lazy to target.
It could be said that the technology giants hated her to the core, but the people of Europe loved her to death. They called her the "Antitrust Pioneer", "Iron Lady", and regarded her as an idol.
This time, Margaret targeted Da Mi Company. A super fine of 7.5 billion EUR, which was equivalent to 60 billion RMB. Clearly, in the eyes of this old woman, Da Mi Company had become a giant on the same level as Google and Fruit.
"Why? Our products are so outstanding and have brought so much help to people. Should we be punished just because we did well? "
The lobbying team hired by Da Mi Technologies strongly argued that this was unfair.
"It's true that you're doing well, but you're affecting others who are doing even better. Your Love Mi Robot has taken up 99% of the market, preventing other companies from developing. Consumers have lost more choices, and this is extremely disadvantageous to consumers. We must prevent a monopoly from happening."
Margaret spoke eloquently.
The Da Mi Company's lobbyists were speechless. They were completely defeated by this godly logic. 'I did well, but it's wrong. Everyone should be doing the same?'
…
After understanding the situation, Chen Jin asked, "Brother Lei, do you intend to pay the $60 billion fine or not?"
"I …"
Lei Xiao Jun hesitated for a moment before saying, "That old witch, Margaret, is very shrewd. She sold more than 25 million units of the Love Mi Robot in the European market, and each unit earned a profit of 2,000 yuan. The total profit is about 50 billion yuan. The fine must be paid within two years, and there shouldn't be any new fines during this period. If the fine is paid and the Love Mi Robot is sold in the meantime, Da Mi Company will still earn some profit."
"Brother Lei, can't you have some backbone?"
Chen Jin shook his head and said, "60 billion is equivalent to at least two years of Da Mi Company's net profit, right? What can't we do with this amount of money? You won't be able to finish spending it even if you keep it for yourself for a few lifetimes. If it were me, I wouldn't pay a single cent and just withdraw from the European market. What kind of a place is this? How can a proper business continue? "
"I'd like to do that, but the sales channels that Da Mi Company established in the European Union not only sell the Love Mi Robot, but also cell phones, televisions, rice cookers, air purifiers … We sell all of these products. After the Love Mi Robot became popular in Europe, many of Da Mi Company's ecological chain products were also sold. We've cultivated a large number of rice fans. Now, Da Mi's popularity in Europe is no less than in China."
"So …"
Chen Jin rolled his eyes. "You intend to pay the tens of billions of yuan fine?"
"I can only admit defeat this time. Moreover, Margaret is going to retire soon. After this fine, there shouldn't be any more problems."
"Margaret will be fine after she retires? Do you think this is a good thing? Don't you know that a new broom sweeps clean? What if the new Anti-Monopoly Commissioner is even more greedy than Margaret and forgets about the fine and starts to attack Da Mi again? They will at most offend the big bosses in Silicon Valley once. Do you think they will show mercy to Da Mi Company in Z country? "Chen Jin analyzed for him.
Cold sweat trickled down Lei Xiao Jun's face.
Chen Jin's conjecture had a definite possibility of coming true.
But it was impossible to withdraw from the European market just like that. Now that the European Union had become Da Mi Company's biggest market, no one would throw away the most profitable market just because of some guesses. The shareholders of Da Mi Company would not agree to it either.
Therefore, not only did Da Mi Company have to admit defeat, they also had to face an unknown future.
Other than a few words of comfort, Chen Jin could do nothing. The Love Mi Second Gen cost $250 for each unit of technology licensing. He would not take a few dozen dollars less out of sympathy. Xing Hai Technologies did not have any business in the European Union. No matter how much Da Mi Company was fined, it would not affect Xing Hai Technologies.
…
July 29th.
The Anti-Monopoly Commissioner of the European Union announced the results of the punishment against Da Mi Company: The Love Mi Robot constituted a monopoly in the cleaning robot market and harmed fair competition. The Anti-Monopoly Commissioner was fined 7.5 billion Euros.
Once this news was announced, it immediately caused an uproar on the internet.
The netizens in Europe were in a state of jubilation. "Well done," "Mother Margaret, I love you," "I've long felt that this company should be punished," "Although I like the Love Mi Robot very much, I'm sorry, you Z people have earned too much money, this is not fair."
On the other hand, the Z nation's internet was in an uproar. The netizens were incomparably angry.
"It's wrong to do well, but it's right to do badly. What kind of logic is this?!"
"7.5 billion Euros. Zhongxing was only fined 3 billion US dollars by the M nation's Ministry of Commerce. This is double!"
"Could it be that the Z nation's companies are fat sheep or pigs that should be slaughtered by others?"
"Brother Lei, withdraw from the European Union market! If the foreigners can't earn money, they should earn it from us. We'll buy Da Mi products! "
"The EU is punishing our company, why don't we punish the EU companies? What are the relevant departments doing? "
The internet was filled with all kinds of heated comments. The netizens were extremely indignant and threatened to take revenge.
However, Da Mi Company, the center of the public opinion, fell silent. Even though there were countless voices of support from the netizens, they did not dare to make any comments, fearing that it would cause even more controversy.
…
"President Chen, your decision not to expand overseas is really brilliant. It's a $60 billion fine, that's too unsightly!"
"I didn't quite understand the boss's thinking before, but now I realize that everything was within the boss's expectations. We were all blinded by the little benefits in front of us."
"Actually, it's obvious just by looking at how Hua Yao was completely squeezed out of the market by the M nation. In the field of high technology, the West will stop at nothing to contain us. If Xing Hai Technologies becomes a giant like Hua Yao in the future, the pressure it will receive will only be greater, and the fines will be even greater!"
"I don't think so. The foreigners will definitely restrict the Wa-wah robot, but they will definitely not restrict the Little Star learning machine. This is a national treasure, something that can increase the nation's fortune and competitiveness. They will even beg us to sell it to their country … A truly good product will make them realize that it's foolish to continue restricting it. Shutting themselves off from the world will only harm themselves in the end!"
"But … the Little Star learning machine is such a good product, why should we sell it to them?"
CEO Ling Dong Jun said. At this moment, the western mindset in his mind had basically disappeared. He had completely maintained the same mindset as his boss.
After a period of crazed tutoring, he understood the power of the intelligent learning program. His ego had also swelled up, and he no longer admired the West.
The collective change of the executives made Chen Jin nod continuously.
Indeed, money was very important, but dignity was equally important. If one lost their dignity and self-esteem for the sake of money, they would not be happy no matter how much money they earned.
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