Here, we review the hottest happenings in our industry and provide insightful commentary on what these developments could mean for your business. If you're a marketing or technology professional, you should take time each week to catch up on the latest happenings. Because, after all, being a news-savvy consumer isn't just good citizenship, it's good for business. 1) Amazon will split HQ2 locations between NYC and DC (NYTimes) We've seen more than a year of speculation about where Seattle-based e-commerce giant Amazon will build its vaunted second headquarters. Indeed, the competition to be chosen as HQ2 has been both incredible and ridiculous: the mayor of Kansas City, MO, reviewed 1,000 Amazon purchases and filmed an unboxing video, while the Atlanta suburb of Stonecrest promised to change its name to Amazon, GA. But in a move that is sure to raise eyebrows, news has leaked that instead of a single location for HQ2, Amazon plans to split its second headquarters between Long Island in New York and suburban Alexandria in Washington, DC Analysts note that Amazon already has more employees in the DC and New York areas than anywhere else outside of Seattle, which would explain the split decision. For much of 2017 and 2018, more than 240 municipalities across the United States tried to lure the tech giant with marketing gimmicks, promises of new infrastructure, workforce development programs work and billions and billions of tax incentives. With the news that HQ2 is split between two cities, it remains to be seen whether NYC and DC will continue to offer Amazon their full incentive packages, or attempt to renegotiate.
Given that NY Governor Cuomo has pledged to change his name to "Amazon Cuomo," our money's on the Employee Email Database former.)2) The EU is about to pass a sweeping new tax regime for tech giants (Reuters) After nearly a year of negotiations, the European Union is reportedly set to adopt a new comprehensive tax regime that would impose additional fees on internet giants like Google, Facebook and Apple. Dubbed the “Fair Taxation of the Digital Economy Act” by the European Commission, the rules would “ensure that digital business activities are taxed in a fair and growth-friendly way in the EU”. The problem is the fact that digital businesses pay far less tax in the EU for transactions and services than their physical counterparts. Under the new plan, EU member states would impose a 3% levy on the digital income of big companies accused of dodging tax payments by channeling their profits to low-tax EU countries. like Ireland. As a result, massively profitable companies like Amazon are paying unusually low tax rates on their income.
However, several EU members, including Germany and France, two key players, refrained from fully endorsing the new EU plan in a bid to push further minimum tax rate reforms. EU companies. While opposition to taxation and regulation is a buzzword in the tech industry, the EU plan is largely sound: big tech companies have an unfair advantage over smaller companies due to how they can avoid paying taxes on business profits. By imposing a small additional tax on these already massively profitable companies, the EU is leveling the playing field for small businesses, encouraging competition and innovation. 3) Amazon and Apple strike a deal to sell iPhones and iPads ahead of the holiday season (CNN) In a surprise move, Amazon and Apple announced a partnership that will see Apple sell devices directly from the storefront from Amazon for the very first time. Under the new deal, Amazon will list the latest Apple and Beats products as soon as they're released, such as the upcoming iPhone XS and XR. In return, Amazon will remove or remove any third-party resellers that sell Apple products on the site. The move is a blow to Apple resellers and refurbishers, who were previously the only way to buy Apple devices on Amazon. It's also part of Apple's increasingly tough crackdown on resellers, refurbishers and other third parties. (Apple was forced to back down following public outcry over the decision.)Good