The Relationship between Technology Giants and Governments
In recent years, sales figures of major technology companies have reached billions of dollars. This situation directs the governments of the countries to gain more profit from these companies. Governments want global technology companies operating in their countries to direct some of their earnings to local investments. These companies know that if they do not comply with local regulations, they may face high taxes or product sales bans.
Situation in Indonesia
In particular, the Indonesian government requires large technology companies operating in the country to allocate a certain percentage of their products to domestic production. This rate is set at 40%. If a company violates this rule, it may face various sanctions. The most striking among these sanctions is the ban on the sale of products.
Apple’s Challenges in Indonesia
For example, Apple has been refusing to comply with this rule for a long time. However, when sales of its latest iPhone 16 and Apple Watch 10 series were banned, the company decided to step back. In this case, Apple decided to invest $10 million in Yageo Corporation, its supplier in Indonesia. Yageo plays an important role as a company that produces accessories and components for Apple.
Domestic Production and Investments
This investment move by Apple is considered as a step taken to fulfill the conditions set by the government and lift the sales ban. Such regulations of the government aim to encourage domestic production and support the local economy. Google had previously encountered a similar situation in the country. Google was banned from selling Pixel 9 phones because it did not make the necessary investments. Such bans require tech giants to not only make financial gains but also contribute to local economies.
Conclusion
It’s clear that tech giants need to take the laws and regulations of the countries in which they operate seriously. Such sanctions by governments enable global companies to take a more active role in the local market. It is aimed to increase investments, support domestic production and thus encourage economic growth. This may have positive results in the long term for both technology giants and local economies.
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