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Google pays $93M to settle Android tracking lawsuit in California
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this post was submitted on 16 Sep 2023
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That ratio doesn't matter.
What matters is the value derived from some prohibited activity relative to the fine/lawsuits resulting from that activity.
Let's say that Company A sells oranges, and uses some pesticide that isn't approved, and gets a fine for it.
Let's say that Company B sells apples, and improperly claimed that the apples were fresher than they were to grocery stores and is sued for that.
Let's say that Company A and Company B merge and form Company C. The value of Company C would be larger, but it would make no sense for either of the above two disincentives to be larger. Being part of Company C doesn't make engaging in bad behavior more-desirable than it does for when A and B were separate, and so the disincentives one establishes for bad behavior shouldn't grow either.
Let's say company C pooled their resources to pay for lawyers that could reduce the penalty to a profitable level, but A and B couldn't individually.
The ratio does matter. The fine is supposed to be a punishment/disincentive, but when that disincentive is less than trivial it no longer disincentivizes. Like a crime punishable by a $250 fine--the working class will follow the law because that's three days' but the rich won't care because it's a glass of wine at a decent restaurant. Google will simply pay the fine with no reason or intent to stop the questionable behavior because they'll just pay the trivial fine again when they get caught--just like they've been doing for years...