Blog | Page 1776 of 1787

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December 24, 2016

Not sure what do with your unused Amazon boxes this holiday season? The online retailer announced a box recycling program earlier this week. The move was welcomed by environmental advocates who noted that Amazon is the largest user of cardboard boxes in the U.S. In fact, only Chinese internet giant Alibaba uses more cardboard boxes.

The program’s goal is to motivate customers to use their old shipping boxes to make donations to Goodwill Industries and was announced on a website post. To make donations, customer will ship food or clothing to Goodwill via UPS or the U.S. Postal service by printing out a shipping label from Amazon’s website and the company will pay the shipping costs.

If the program sounds familiar it is because it has been around in one form or another since 2015. Goodwill has been participating since 2012 and during that time the charity has partnered with other retail giants including Bonobos, Ann Taylor, Overstock, REI, and Overstock.

Advocates welcomed Amazon’s support of the program saying that it not only helps disadvantaged families by making donations of unused goods but also helps to give a second life to the shipping boxes.

Amazon Boxes — Stock Photo: PARIS, FRANCE – SEP 4, 2016: Cat inspecting multiple Amazon Prime boxes delivered by courier and left by the door by Hermes delivery courier (Hadrian / Shutterstock.com)

While the exact number of cardboard boxes used by the company is hard to determine. Analysts estimated that the company shipped roughly 1 billion orders per year. That works out to just over 31 orders per second.

Even with the company is using recycled paper for its cardboard boxes, the sheer demand requires the harvesting of just under 2 million trees per year. This is on top of the recycled content in Amazon’s boxes.

Furthermore, it is unlikely that any reuse program will reduce this amount. This is not due to a lack of trying. Instead, the company’s growth rate means that the volume of paper used to ship every item the company sells is likely to increase.

As The New York Times noted in a February 2016 article, it is not just the shipping boxes. When a customer receives a shipment, it is usually packed like a ‘Russian nesting doll’ with a master container filled with several smaller containers.

Ultimately, this is the conundrum of online commerce as its continued growth will on exacerbate the demand for packing materials. While much of this can be often by increasing the recycled content of the boxes which the kitchen supplies, shoes, and camping items come in, it is up to consumers and the companies to find second uses for boxes or ways to eliminate boxes altogether.

Will Disney Make a Play for Netflix?

Business

Reginald Edward

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December 23, 2016

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In October the market lit up with news that Disney was considering an acquisition of Netflix. In fact, the proposed transaction seemed to make a lot of sense. Netflix is a ‘new’ media company with a stable of hit shows, millions of subscribers, and distribution deals with almost every major studio in Hollywood. This includes Disney, which has agreed to make all their movies available on Netflix. In addition, ‘old’ media company is in the process of building their own streaming service – DisneyLife.

From the outside, the deal would seem to make sense for both parties. But since the initial report in October, there has been no movement by either side. According to sources, the delay is largely due to strategic conversations within Disney and Netflix might not be the only acquisition.

In fact, Twitter is another company which Disney is said to be considering. While a deal for Twitter would be less expensive for Disney, it is hard to see how an acquisition of the Twitter would help the Mouse. While the microblogging site and its Periscope division might be a nice add-on for marketing and brand extensions, it does little to help Disney’s core businesses of media and entertainment. Even Twitter’s attempts at live streaming NFL games have been met with lackluster ratings.

On the other hand, Netflix has been able to hit it out of the park with several its original productions – House of Cards and Orange is the New Black – and the company has acted as the prime disruptor of media distribution. Remember Blockbuster?

Orange is the New Black Netflix — Stock Photo: NEW YORK -JUNE 21: Netflix mural in Williamsburg section in Brooklyn on June 21, 2014.

As such, an acquisition might make perfect sense as it would position Disney as the penultimate movie production and distribution company in the world. This might be where the trouble starts. Any such deal would be complicated by regulatory oversight, which would include antitrust and data privacy reviews. In addition, potential changes to the Federal Communication Commission’s (FCC) ‘net neutrality’ rules would significantly alter Netflix’ market cap.

Given these variables Disney might choose to pass, or they might decide to wait for regulatory clarity before making a formal offer. In the meantime, the Mouse will continue to expand the scope of DisneyLife and add more content via competing sites such as Hulu and Amazon.

Netflix Stock — Stock Photo: MONTREAL, CANADA – FEBRUARY, 2016 – NFLX – Netflix stock market ticker with chart on the web under magnifying glass. (dennizn / Shutterstock.com)

While shares of Netflix have been trending up during the post-election rally, it is still below highs reached in October when news of Disney’s interest in the company first surfaced.

Analysts Question the Value of Facebook’s Shares

Business

Reginald Edward

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December 23, 2016

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Analysts Question the Value of Facebook’s Shares

While the momentum from the post-election rally tapered in recent days, a growing number of analysts have begun to be concerned about the prospect for Facebook. The current consensus earnings forecast for the company is $1.12 for the quarter ending December 2016. But the forecast falls to $0.89 for the quarter ending March 2017.

The fall has some analysts scratching their heads and asking whether Friday’s opening price of $117.40 is worth it. In fact, J.C. Parets of All Star Charts has already issued a warning for the company, calling the stock’s current trend a ‘disaster’.

Yes, shares of Facebook have gained ground since the since the election. But the movement has been uneven and as of the Friday before Christmas, the stock was trading off its post-election highs of $121.77 which was reached on November 21. Even that high was well off its three-month high of $133.28 posted on October 28.

That being said, the company has performed well over the past year. Shares of Facebook opened the year at $102.22, so it has made money for investors this year. However, Facebook has underperformed the broader market, which is on pace to post gains of 14% for 2016.

Why is Facebook underperforming?

Facebook Headquarters — Stock Photo: MENLO PARK, CA – MARCH 18: A sign at the entrance to the Facebook World Headquarters located in Menlo Park, California on March 18, 2014. Facebook is a popular online social networking service. (Katherine Welles / Shutterstock.com)

What is unclear at this point is why Facebook’s shares have underperformed the broader market. Part of the reason might be that the company is closely tied to other technology stocks which faces a certain amount of regulatory uncertainty.

Net Neutrality

This uncertainty is tied to increasing odd that the Federal Communications Commission (FCC) which looks set to reverse its stance on ‘Net Neutrality’. While such a decision might not impact Facebook as much as companies like Netflix, it will impact the sector and this is likely to weigh on the both companies.

User Growth

Another issue which might be impacting Facebook’s prospects is user growth. The company currently boast nearly 1.8 billion users, but growth is slowing and Facebook is effectively locked out of the all-important Chinese market. Slowing growth could impact profitability, especially as advertisers cut back on their marketing spend with the company.

Fake News

Yet another issue which is impacting sentiment on Facebook is the specter of fake news and online bullying. For all of Facebook’s benefits, it has done little to stop either and some observers believe the company made be an unwitting enabler.

Tax Liabilities

Then, there are potential tax liabilities, privacy concerns, and unforeseen challenges to the company’s dominance in the social media space. If anything, this points to the need for the company to continue to refine and innovate its business model. However, this becomes much harder when trying to manage a $330 billion global corporation.

This does not mean that Facebook is not a buy. In fact, very few analysts have issued sell opinions on the company. But the charts and some of the associated warnings do point to caution going forward.

Stock Market is Bullish After Gas Prices Rise

Business

Reginald Edward

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December 23, 2016

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Stock Market is Bullish After Gas Prices Rise

As millions of Americans travel across the country for the holidays, oil prices are up nearly 30 cents per gallon, according to a new report by the AAA. While, US consumers are feeling the affects of rising gas prices at the pump, stockholders are seeing a bullish market with growing oil prices.

The Middle east and oil producing countries have recently agreed to cut oil production. Consequently, Brent crude prices have gone up some 8 percent. Other oil producing countries are also looking to cut production. Albeit at different levels. This news is starting to affect oil related stocks for the better. Oil related stocks have risen modestly in the past weeks. But a small increase is a good thing. Especially, considering there has been approximately 2 years of low oil prices.

OPEC Cuts Oil Production

The cutting of production is a strategy to increase the price of oil per barrel. This strategy will work, if all the countries cooperate. At the moment, OPEC members seem comfortable with the production of oil in the United States. But, if a country gets greedy and moves to increase their personal share of the market by increasing oil production, then you can expect OPEC to again flood the market with oil production.

Gas Prices — Stock Photo: SACRAMENTO, USA – SEPTEMBER 5, 2013: High Shell gas price on September 5, 2013 in Sacramento, California. California holds the leading position in continental US for the fuel cost. (Sergey Yechikov / Shutterstock.com)

In an odd way, this somewhat demonstrates the continued conversation of a world economy. Illustrating how much we all are interdependent on each other to cooperate. A balance between using resources and conserving natural resource raises the topic of reducing our dependence on fossil fuel and to move towards more renewable energy sources such as wind, natural gas, solar, etc.

As usual, there is little to no conversation about how much people will pay for gas at the pump in the United States due to rising oil prices. However, it is clear that OPEC’s decision to cut oil production is affecting Americans this holiday season.

Ultimately, the market for oil is bullish and it is anticipated to continue to be bullish into 2017 as well.

North Pole is 50 Degrees Above Average

Business

Megan Diane

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December 22, 2016

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With Christmas just days away, Santa’s “home” in the North Pole is experiencing some of the warmest temperatures ever recorded. In fact, the rising temperatures are 32 degrees – that’s right, the melting point of ice.

Researchers at Climate Central have released a report revealing that the Arctic region is experiencing record-high temperatures this month. In fact, the weather is typically 20 degrees below zero however, this December temperatures in the North Pole are reaching above 32 degrees.

Typically the fall brings in a new era of ice growth in the North Pole. But, this November there was actually a decrease in ice growth. A phenomenon that is that has not been since in the past 40 years, since researchers at the National Snow and Ice Data Center started studying the Arctic ice caps.

Researchers point out that the North Pole should be around 95% covered with sea ice. But, this year only 80 percent of the Arctic region is currently covered with ice.

It all started last November when temperatures were 27 degrees above normal for that time of year. The temperatures declined slightly however, it is continuing to get warmer and warmer in the North Pole.

What does this mean?

Researchers argue that extremely warm weather in the North Pole can have serious consequences. Including affecting feeding and behavior patterns of animals, which could arguably led to mass starvation. In fact, scientists pointed out that in 2013 61,000 reindeers died in the Russia as a result of warming temperatures.

Other animals affected by warming temperatures include whales and polar bears, as their habitat is largely changing due to smaller ice caps.

This is not the first time this has happened. Last year, temperatures on the North Pole rose above freezing temperatures. What is supposed to be winter in the North Pole, the Arctic was experiencing above-freezing temperatures in 2015.

With that being said, rising ocean levels, increasing carbon dioxide levels, and extreme weather patterns may continue to surge as long as the world’s climate continues to get warmer and warmer.

Quitting Facebook Makes People Happier, Study Finds

Business

Brent Edward

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December 22, 2016

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Quitting Facebook Makes People Happier, Study Finds

A study called, the “Facebook Experiment” published in the journal of “Cyberpsychology, Behavior and Social Networking” found that people ended up feeling happier after they quit using Facebook.

Tromholt Morten, the lead researcher in the study, found that taking a break from Facebook made people happier. In fact, the study found life satisfaction increased and subject’s emotions became more positive. In addition, the study found that these effects increased for Facebook users who frequently visit the website or tend to envy others on the social network.

The experiment analyzed 1,095 people in Denmark and studied the subjects over the course of a week. Consisting of mostly of women (86%), the average Facebook user in the study had about 350 Facebook friends. Furthermore, each Facebook user in the study spent over an hour on per day on the social networking site.

First, researchers separated the subjects into two different groups. The treatment group, users who will not use Facebook over the course of the week, and the control group, users who will keep using Facebook as usual.

Then, subjects completed a 15-minute online questionnaire on the last day of the study. The results of the study found there was a causal relationship between emotional well-being and Facebook use. However, the amount of reported gain of well-being varied in relation to how people use Facebook.

Overall, the study showed that people who spend a lot of time on Facebook, users who lurk on the social network and users who tend to get jealous others on Mark Zuckerberg’s company reported the highest gain in well being.

Ultimately, Morten explains that if someone cannot change the way they use Facebook, then they should “consider quitting Facebook for good.”

Researchers plan to explore the effects of quitting Facebook for longer periods of time in order to see how it impacts human psychology and behavior.

Facebook: Emotional Contagion experiment

Facebook news feed — Stock Photo: MONTREAL, CANADA – MARCH 25, 2016 – Facebook page under magnifying glass. Facebook is a corporation and online social networking service. (dennizn / Shutterstock.com)

This is not the first time scientists studied the impact Facebook has on their billion users. However, one of the most telling studies came from Cornell University. In 2014, Cornell revealed that the University and Facebook engaged in an experiment that altered the news feeds of 689,003 random Facebook users.

The goal of the study was to change the number of negative and positive stories they saw on their news feed. Ultimately, scientists discovered it resulted in a psychological phenomenon called “emotional contagion”. Emotional contagion essentially means the emotions and feelings of someone else rub off on others. “When positive expressions were reduced, people produced fewer positive posts and more negative posts; when negative expressions were reduced, the opposite pattern occurred,” Cornell researchers explained.

Ultimately, researchers argue that in-person communication and nonverbal cues are not necessary for a emotional contagion to take place.

US Government Claims Edward Snowden is a ‘Serial Exaggerator’

Business

Jonathan Antonio

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December 22, 2016

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US Government Claims Edward Snowden is a ‘Serial Exaggerator’

Three years ago, Edward Snowden started the largest and most damning public release of classified information in the history of US intelligence. A year after the massive leak of classified information perpetrated by Snowden, the US government launched a comprehensive review of the disclosures. Now, a few days before Christmas, the US House Intelligence Committee released declassified documents going into detail into the former National Security Agency (NSA) contractor Edward Snowden.

In the now declassified documents, the US House of Representatives released a review of Edward Snowden. The House Intelligence committee documents goes into detail surrounding the former NSA contractor. The House Intelligence Committee reveals that Snowden was able to retrieve more than 1.5 million classified documents from the NSA networks. In addition, the government report asserts Snowden’s release of classified information benefited America’s adversaries. In fact, according to the US government report, last June 2016 the deputy chairman of the Russian parliament’s defense and security committee revealed that “Snowden did share intelligence” with Russia.

National Security Agency — Stock Photo: JANUARY 27, 2014: Photo of the NSA/CSS homepage on a monitor screen through a magnifying glass. (Gil C / Shutterstock.com)

Edward Snowden argued that his objective was to inform people. But, the 33 page document argues that the information he released became available to foreign government intelligence agencies. In addition to any terrorist “with Internet access”.

The declassified documents makes it clear that the government does not see Snowden as a whistleblower. The committee argues that public release of classified information does not make someone a whistleblower. Instead, a whistleblower releases classified information that shows a government agency engaged in illegal activity to the appropriate oversight committee and not to the general public.

Edward Snowden NSA — Stock Photo: WASHINGTON – OCTOBER 26: Signs displayed during a rally against mass surveillance organized by the group Stop Watching Us in Washington, DC on October 26, 2013.

From a “fiery e-mail argument” with a supervisor about how computer updates should be handled. To failing basic annual training for NSA employees, where Snowden complained “the training was rigged to be overly difficult”. The review paints a picture of Edward Snowden’s history weeks before he started downloading classified documents.

The declassified review goes on to call Snowden a “serial exaggerator and fabricator”. The House Intelligence committee argues that Snowden has a pattern of “intentional lying”. For example, the newly declassified report points out that Snowden “doctored his performance evaluations and obtained new positions at NSA by exaggerating his resumé and stealing the answers to an employment test.”

NSA protest — Stock Photo:
BERLIN – SEPTEMBER 07: Under the motto “Freedom not Fear” several thousand people demonstrated for the protection of civil rights on the Internet (Sergey Kohl / Shutterstock.com)

This newly declassified documents comes a day after the release of Facebook’s Global Government Requests report. In Facebook’s press release, US law enforcement agencies accounted for the largest number of data requests. In addition, the total number of government data requests increased by nearly 30%.

Microsoft Inks $927 Million Contract with Pentagon

Business

Reginald Edward

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December 22, 2016

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Microsoft Inks $927 Million Contract with Pentagon

Christmas came a bit early in Redmond, Washington this year. The Department of Defense announced a massive $927 million software contract with Microsoft on Tuesday. Furthermore, the contract was awarded on a non-competitive basis. It will give the Pentagon and other related agencies access to the source code on all of Microsoft’s software packages.

Stock Photo: USA. WASHINGTON, DC NOVEMBER – 24, 2016: The Pentagon building, headquarters for the United States Department of Defense. (Miami2you / Shutterstock.com)

According to a press release by the Defense Information Systems Agency, a portion of the contract includes the issuance of a ‘Blue Badge Cardholder support’.

This is the highest level of after sales support offered by Microsoft and is utilized by only a few of the company’s portfolio of corporate and government accounts.

While it was highly unlikely that the Pentagon would ditch Microsoft for an open source solution, the fact that the Department of Defense has complete access to the company’s source code did raise some eyebrows.

Yet, industry experts noted that some sort of source code access is quite common when software companies are dealing with government agencies or large corporate buyers.

Doing so allows the customer’s IT department to more fully monitor all the software running on a network. It also allows the opportunities to customize the software based on operating requirements.

Even more, one area where this could come in handy is security. Recently, the computer networks of the Pentagon are constant targets for hackers. In fact, military planners have become increasingly concerned about the possibility that some sort of cyber-attack. A serious cyber attack could cause considerable harm to the nation’s defenses. In turn, possibly rendering communication and other systems inoperable.

The probability of a large-scale attack is unlikely. However, it is noteworthy that systems running Microsoft’s, programs are considered more likely to be vulnerable. In some ways, this is part and parcel with the company’s success as the dominant software company in the world. More importantly, Hackers prefer to write malicious code which can infect large number of computers such as those running Windows XP (which is remains widely in use) or Window 10.

Microsoft Hack — Stock Photo: New York City, U.S.A – February 3, 2014: The Blue Screen of Death is an error screen displayed after a fatal system error in the computer. (JaysonPhotography / Shutterstock.com)

To combat the risks of cyber attacks the company has spent close to $1 billion in security initiatives. These security initiatives include the opening of cyber security outposts. Not to mention, hiring a number of experts in the area including ‘white hat’ hackers. In comparison to ‘black hat’ hackers.

According to Bret Arsenault, Chief Information Security Officer at Microsoft, the company has used the investments to expand the capabilities. In addition, Microsoft is currently looking to explore ways to make its software more secure in an ever-changing world.

Similarly, In 2015 Microsoft CEO, Satya Nadella, outlined the company’s plans for building a security strategy. The mission is discover better ways to find and stop potential threats.

John Podesta hack — Stock Photo: LAS VEGAS, NV – OCTOBER 13: Democratic presidential debates, Clinton chairman John Podesta interviewed in the spin rooom after the presidential debate at the Wynn (Joseph Sohm / Shutterstock.com)

However, the investments are hamstrung by user carelessness. For example, the massive hack of John Podesta’s emails was linked to a phishing incident. A phishing hack occurs after a target clicks a link initiating a data breach.

Shares of Microsoft were up in early trading on Thursday morning.

Facebook Reveals Government Requests Are Up Nearly 30%

Business

Jonathan Antonio

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December 21, 2016

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Facebook Reveals Government Requests Are Up Nearly 30%

Facebook releases their Global Government Requests report showing user account requests are on the rise.

Two years ago, Facebook’s relationship with the US government came under fire after the release of confidential documents provided by former NSA contractor turned whistleblower, Edward Snowden, leaked to the press. Snowden explained in a 2014 New Yorker interview that if users want to keep their privacy, then they should avoid using Facebook.

Edward Snowden — Stock Photo: WASHINGTON – OCTOBER 26: Signs held by protesters during a rally against mass surveillance in Washington, DC on October 26, 2013. (Rena Schild / Shutterstock.com)

Fast forward two years later, reports suggested certain toys now have the ability to spy on children. Not to mention the rise of hackers targeting tech companies, in 2016 mass surveillance is still a hot topic issue.

Facebook Global Government Requests Report

Then on Wednesday, Facebook released their 2016 Global Government Requests report. The report illustrated a near 30% percent increase in the number of government user data requests from the social network. In addition, Facebook made sure to note the importance of user privacy data. Especially, the decision to not provide the government “back door” access to Facebook users’ information.

Overall, Facebook points out the number of government requests for account information increased by 27% compared to last years’ Global Government Requests report. In fact, Facebook reports the number of government requests increased from 46,710 in the first half of 2015 in comparison to 59,229 requests in the first of half of 2016.

Mark Zuckerberg Facebook — Stock Photo: Jelenia Gora, Poland – February 25, 2016: New Facebook like button 6 Empathetic Emoji. Facebook is a well-known social networking service. Mark Zuckerberg’s page account on FACEBOOK (Rena Schild / Shutterstock.com)

The US law enforcement accounted for largest number of requests for account information. As a matter of fact, 56% of those requests contained a non-disclosure order prohibiting Facebook from notifying the user. Furthermore, Facebook’s report shows in the United States 80.65% of government records requests were granted.

The total number of items restricted from the social network, due to violating local laws, decreased by 83%. However, Facebook explains that there was a large number of content restrictions last year because of a single image originating from the Paris attacks.

Paris Attacks Facebook — Stock Photo: PARIS, FRANCE – NOV 13, 2015: Francois Hollande at French Television address to the Nation on the Terrorist Attacks. At least 40 people were killed across Paris, with explosions outside the stadium (Hadrian / Shutterstock.com)

Facebook and User Privacy

Facebook wants to make it clear they are putting their users’ privacy first. Zuckerberg’s company explained that the social network does not provide “back doors” or the government access to people’ information.

Chris Sonderby, Deputy General Counsel for Facebook explained the importance of privacy. “We’ll also keep working with partners in industry and civil society to push governments around the world to reform surveillance in a way that protects their citizens’ safety and security while respecting their rights and freedoms,” Sonderby said.

Apple’s European Tax Woes Set to Worsen

Business

Reginald Edward

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December 21, 2016

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On Wednesday, the European Commission (EC) upped the ante in their battle to force companies to pay billions in taxes as a court in Spain backed the collection orders. It is expected that the decision will set the stage for the European Court of Justice to review the matter and deliver a final verdict on the unpaid tax bills of companies such as Apple, Facebook, and even Anheuser-Busch InBev SA.

The question is whether these companies can use their registration in low-tax countries such as Ireland and Luxembourg to skirt taxes in more expensive jurisdictions. While theses structures has been used by companies in Europe for years, they have come under scrutiny as governments seek new sources of tax revenue.

Apple European Union — Stock Photo:HAMBURG, GERMANY, DECEMBER 12 2016: Apple store in Hamburg, Germany, with people passing by in front of it. Apple Inc is an American technology company headquartered in Cupertino, California. (urbazon / Shutterstock.com)

According to Professor Raymond H.C. Luja, who specializes in comparative tax law, the decision ‘clarifies the rules of the game’ in Europe. As the court ruled that regulators were not targeting any one company rather they were seeking to clarify the understanding of rules which were being used to exploit existing tax laws in the common market.

Apple Europe Commission — Stock Photo: Belfast, County Antrim, Northern Ireland – Aprl 27, 2016: Apple Store in Victoria Square Shopping Centre in Belfast City Centre. (James Kennedy NI / Shutterstock.com)

For Apple’s part, they have viewed attempts by the EC to force back tax claims as a sort of crusade against the company. There is some good reason for this claim, as successful enforcement of the claim would result in a $13 billion tax bill.

While yesterday’s ruling is a breakthrough, it is highly likely that the decision will be appealed to the European Court of Justice. As such, the final verdict on the matter could take six months or longer to decide. From there, companies would seek to negotiate settlements with the EC and there would also be calls to amend or enact new legislation by the European Parliament and the parliaments of the various member states.

European Union — Stock Photo: FRANKFURT, GERMANY – AUG 23: The Famous Big Euro Sign at the European Central Bank on August 23, 2012 in Frankfurt, Germany. The bank was established by the Treaty of Amsterdam in 1998. (Rob Wilson / Shutterstock.com)

This could ultimately lead to long-term tax breaks based on fines and concessions based on future sales. In addition, companies might be forced to break up the complicated structures they are currently using in the EU to offset tax liabilities. These include registering holding companies in low-tax countries and setting up online sales though these jurisdictions only.

However, there is a cost to managing the myriad of holding companies used by multinationals in Europe. As such, any move to clarify the tax codes would also make it easier for companies to set up structures which mitigate taxes while remaining within the law.

Shares of Apple were trading up by the lunch break on Wednesday at $117.08.

Why is Facebook underperforming?

Net Neutrality

User Growth

Fake News

Tax Liabilities

OPEC Cuts Oil Production

What does this mean?

Facebook: Emotional Contagion experiment

Facebook Global Government Requests Report

Facebook and User Privacy

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