When I am reborn, I just want to be a top student
Chapter 699 Digital Services Tax: Google's Response
Mountain View, California.
Many people across the internet probably know the name Google, but they may not know much about it.
Most people only know that there is one browser.
However, they were unaware of Google's other businesses or subsidiaries.
For example, YouTube is a subsidiary that Google acquired.
For example, the Android system was developed by Google and the Open Handset Alliance, and it accounts for 73% of the global mobile phone market.
As a giant corporation, Google's market capitalization exceeds $700 billion.
A giant of this size naturally has incredibly good access to information.
When the concept of a digital services tax was mentioned in a closed-door meeting in China, it had already reached the ears of Google's powerful shareholders via long-distance telephone calls.
The shareholding structure behind a giant company is incredibly complex.
There are people with extraordinary abilities, powerful figures, and conglomerates.
Although the shareholders are aware of this matter, they will not personally come forward.
So the news was passed on to Google executives.
At this moment, in a conference room at Google's headquarters in Mountain View, Google executives were gathered.
"China's introduction of the digital services tax is very clear; it's targeting us. In order to support their domestically developed operating system, we have no room for compromise. I suggest cutting off GMS first to let them know our stance before we can communicate with them and negotiate terms!"
CEO Sundar was the first to offer his thoughts and suggestions.
As CEO, his attitude was firm: strategic deterrence plus indirect infiltration.
He has both the attitude and the methods, which is befitting his status.
However, CFO Fiona had a different opinion, saying, "That's not enough. We need to teach them a lesson they can't bear the consequences of their actions."
“Besides cutting off GMS, I think we can also use our advantages and capital to strike them.”
"I propose that companies like the short-selling center in the capital market must make it clear to the vultures on Wall Street that for every 1% increase in HarmonyOS's market share, the global supply chain loses 20 billion!"
"Once the HarmonyOS system is fully developed, their stocks will be worthless."
Osterlin nodded firmly in agreement. As the president of Android, the emergence of the HarmonyOS system posed the greatest threat to him.
Therefore, after hearing these suggestions, he quickly stated: "I believe we must delay the open source release of AOSP11, and all MAC addresses of devices supporting the HarmonyOS system should be included in the GMS blacklist!"
"The mobile operating system market can only have Android and iOS. This is our territory, and we absolutely cannot allow a Chinese brand to enter."
"Gentlemen, don't forget what we've laid out in the underlying protocol."
"If no one uses our operating system, all that setup will be worthless."
Upon hearing this, the expressions of the people present all changed.
Although the Prism scandal had already been exposed before.
However, this did not stop the Bald Eagle federal surveillance efforts.
These high-tech companies, while seemingly fair and transparent, actually have extremely close ties with the Bald Eagle Federation government.
In some areas, it has even acted as a collaborator.
Therefore, upon hearing Osterlin mention this, everyone became even more convinced of their own ideas.
at this time.
The last person in the conference room spoke up, saying, "This is no longer a simple matter of market competition. We absolutely cannot allow China's HarmonyOS to enter our market. No one will accept our phones being controlled by a Chinese operating system. That would be an extremely irresponsible thing to do."
"For the sake of our market, for the safety of our lawmakers, and for the benefit of our shareholders, the HarmonyOS system must be completely eliminated."
The speaker was Kent, Google's president of global affairs.
"I think we should first file a lawsuit with the WTO, then push for a congressional hearing, and add our technological countermeasures to let China feel our power."
"Don't forget, this time the digital services tax isn't just targeting us, it's also affecting Apple!"
Everyone can see the threat posed by the HarmonyOS system.
The idea of suppressing the HarmonyOS system is a common one.
However, when it comes to specific methods, everyone does it differently because of their own roles and abilities.
However, after the pros and cons were explained, everyone reached a consensus.
After reaching a tacit understanding.
Then everyone went about their separate activities.
Google's CEO, Sundar, did not leave the meeting room.
He is also responsible to the shareholders behind Google.
It's worth noting that since the emergence of the HarmonyOS system, a series of news reports have caused Google's market value to drop by 1.34%.
At Google's scale, even a small fluctuation can involve billions of dollars.
This naturally drew dissatisfaction from some shareholders.
Now, Sundar must confront the dissatisfaction of these shareholders, explain his position, and persuade them to support his actions.
The conference call was connected quickly.
All the major shareholders appeared on the screen.
At the start of the meeting, one shareholder immediately raised an objection, saying, "The Chinese market accounts for 18% of Android's revenue. With the pre-installation of the HarmonyOS system and the digital tax, the annual profit is expected to evaporate by 120 billion."
"This is an unforgivable mistake. Why didn't we get the news in advance? Why was Galaxy Technology able to develop the HarmonyOS system so smoothly in secret? Could there have been a technology leak, or did someone provide assistance?"
“I believe these things must be thoroughly investigated, and someone must be held accountable for them.”
"But that's not the most important thing. The most important thing is how to deal with the threat of the HarmonyOS system and how to oppose it."
"On the one hand, I believe it is necessary to convene a shareholders' meeting to sue the board of directors for their strategic mistakes in China and to claim compensation for shareholder losses. Someone must pay for the losses caused by the HarmonyOS system this time."
"On the other hand, I think it is necessary to immediately suspend the production lines in China and transfer the supply chain from China to Jiaozhi."
Faced with such an aggressive attack from shareholders, Sundar remained calm and spoke in a neither humble nor arrogant manner: "Sir, please allow me, as the CEO of Google, to provide an answer to everyone!"
"First of all, in response to the potential loss of market share in China, I have already adjusted the company's strategic development and will make up for it in India."
"In this regard, we will invest five billion US dollars to support Reliance Jio in developing an 'Indian version of Android'."
"India's population is not much smaller than China's. If we successfully open up the Indian market, it will greatly expand our market size. That's one point." "Next, we will take the following measures to deal with China's measures."
"Cutting off GMS is only the first step. At the same time, we will also use capital means to short-sell related Chinese companies and target Chinese industries."
"The release of AOSP11 has been delayed, and the MAC addresses of devices supporting the HarmonyOS system have been added to the GMS blacklist."
"Finally, we need the assistance of all shareholders."
"Google is everyone's Google, it's our company, and our interests are aligned."
"Therefore, I need everyone to work together to push forward the WTO's lawsuit and the initiation of congressional hearings, creating an atmosphere of pressure on China internationally."
"Our best countermeasure is the overseas sales of Chinese brands. We only need to find any reason to cause losses to the sales of Chinese smartphone brands."
"This is not just a business competition, but a competition in the field of operating systems."
"This is related to our technological leadership and our core business ecosystem."
"Therefore, we can only win, we cannot lose!"
After Sundar finished speaking, the many shareholders on the screen fell silent and began to ponder.
indeed.
Sundar did make a valid point earlier.
That means these Google shareholders all share the same interests.
If Google's market value drops, it will also affect the value of their shares.
Therefore, whether for their own benefit or for other interests, they must ensure Google's market share.
The shareholders who had spoken earlier fell silent.
In fact, he also understood that his initiative would not affect Sandar at all.
But if I don't say it out loud, it wouldn't be in line with my status as a shareholder.
Sundar's explanation, while not perfect, is certainly a passing grade.
"This is a war, a war without gunpowder, a high-tech discourse war taking place in the information age."
"The operating system is the most fundamental element of intelligent devices. If we lose this foundation, we will gradually lose even more."
Sundar looked at the many shareholders, still pondering. After a moment's thought, he emphasized his words.
“Leave the WTO complaint to me. We can invoke the Agreement on Technical Barriers to Trade to accuse China of ‘mandatory pre-installation’ as a digital trade barrier.”
“Leave the task of pushing for the hearing to me. Include the digital tax in the Section 301 investigation list, and if appropriate, impose retaliatory tariffs of 100% on Chinese companies.”
"..."
As the shareholders behind the giants, each one wielded considerable influence and readily accepted the task.
Sundar was quite pleased to see this.
With the assistance of these shareholders, the chances of overcoming this difficulty are two times greater.
……
Sundar's actions didn't stop there.
They immediately contacted CNN and gave an exclusive interview regarding the HarmonyOS system and the digital services tax issue.
Driven by the power of money, this interview was set in the right direction from the very beginning.
The problem was specifically designed by Google.
Therefore, Sundar appeared very natural in front of the camera.
"This is the 'Berlin Wall' of the digital age!"
"China's pre-installation of the HarmonyOS system is an act that stifles the right to choose for 1.4 billion people. I don't think this is something a modern country should do..."
"I simply can't imagine what would happen if HarmonyOS appeared on our phones. It's very possible that we would end up like users in China, having all of their information leaked through backdoors, including their names, phone numbers, addresses, and family relationships..."
"In China, their companies take collecting user data for granted. I cannot accept such a thing happening in our country. Similarly, I do not condone the disrespect for user privacy shown by Chinese companies..."
"In order to promote the globalization of technology, we have always maintained our willingness to cooperate. If China is willing to abolish the digital tax, we will upgrade the special version and invest three billion US dollars to build an artificial intelligence ethics center."
"Of course, this job is based on the premise that the HarmonyOS system will remain a 'Internet of Things system' forever, just like when Galaxy Technology first launched it."
"To protect our commercial interests, we will prohibit smartphone brands that pre-install HarmonyOS from accessing GMS until China abandons the HarmonyOS system..."
"At the same time, if an app is compatible with the HarmonyOS system when it is listed on Google Play, the commission rate will change, and can reach up to 50%."
"AOSP11 code release delayed; MAC addresses of all devices supporting HarmonyOS will be added to the GMS blacklist..."
"Secondly, this practice of pre-installing the system clearly violates the principle of fair trade, and 'mandatory pre-installation' constitutes a digital trade barrier."
"I will file a complaint with the WTO to ensure fair and just trade..."
"Finally, after investigation by our patent department, we discovered that some companies have engaged in infringement. We have collected evidence and will file a lawsuit!"
"To ensure the security of our privacy data and devices, I will apply for a sales ban to prohibit the export of HarmonyOS devices with ART installed!"
CNN, as a media platform of the Bald Eagle Federation, has a large audience.
This interview immediately caused a huge stir in the Bald Eagle Federation and internationally upon its release.
Originally, Masla spent a lot of money to question and criticize Galaxy Technology and Wang Dong on YouTube and other international platforms.
Now, another current Google CEO has emerged, publicly criticizing the HarmonyOS system and the digital services tax.
This immediately sparked a frenzy among netizens in the Bald Eagle Federation, with some quick-acting individuals even selling off their shares in Chinese companies.
As expected, the news immediately impacted the stock prices of most Chinese companies.
Shares of companies such as BYD, CITIC, and CATL have all experienced varying degrees of sharp declines.
The worst-hit center saw its stock price plummet by 19% in a single day.
This action has also helped companies like Masla, SpaceX, and Google, whose stock prices had previously fallen due to China, to recover some of their stock prices.
Although the stock price has not yet returned to its previous level, the downward trend has been halted, and with such positive news circulating online, many people have naturally regained their confidence.
In the stock market, confidence is more important than gold.
Apple, which was affected along with Google, was also not idle at this time. (End of this chapter)
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