> The cost of compliance also grows, and that disproportionately favors big established players.
Not true at all. Most of the harsher regulations only come into effect when the company hits a specific size. Examples from Australia (my country):
- Online shops that operate overseas, and import to Australia have to collect sales tax... but only if they make more than $75,000 from Australia per annum.
- Social media has to ban Australians under 16... but only if they make more than a billion per annum.
> Most of the harsher regulations only come into effect when the company hits a specific size.
That’s very market and country specific. Spain makes more than 1k tweaks to it’s food regulations each year, which would kill lots of restaurants if they were to be in compliance.
The result is that everyone tries to make as much money as they can and build a “inspection fund”, because you’re guaranteed to get a fine if inspected.
Why isn't #1 an import duty sales tax system instead and you need to declare the proper value as part of shipping, or the good is rejected / confiscated?
Actually, online shops that mail stuff to Australian customers who request them to do so don't have to collect or pay any sales tax. The Australian government might stomp their feet and declare otherwise, but they have no legal or jurisdictional authority to do so, nor any real means for enforcement.
This trend of countries declaring that everyone on the planet is under their jurisdiction if they mail something there (or respond to a network request) is bananas.
> This trend of countries declaring that everyone on the planet is under their jurisdiction if they mail something there (or respond to a network request) is bananas
I disagree.
Imagine I ban health potions in my realm. I am running a Darwininistic experiment to make my people the most resilient people of the world and I want them to succeed through survival of the fittest. I tolerate non magical medicine but anything else will pay 1000% duties or be confiscated. A merchant comes by with a delivery of health potions to "Johnathan Man". The guards point to the "Survival of the ssssttttrrroooong" banner, while the merchant throws a fit saying she has a very powerful uncle that just happens to be a known warlord. The guards laugh, close the gates and go back inside for another pushup context. Meanwhile Johnathan and the merchant complain things about jurisdiction to no one in particular.
I have no idea what you're even trying to say here. Australia is welcome to try and confiscate goods that are mailed without paying sales tax, but we both know they lack the ability to actually execute that. And their ability to do anything about digital sales is basically non-existent.
So if I'm understanding your analogy correctly, the guards can't really do anything, so the merchant and the buyer will be the ones going about their business.
Not true at all. Most of the harsher regulations only come into effect when the company hits a specific size. Examples from Australia (my country):
- Online shops that operate overseas, and import to Australia have to collect sales tax... but only if they make more than $75,000 from Australia per annum.
- Social media has to ban Australians under 16... but only if they make more than a billion per annum.