Even if all signatory countries would get their act together, the fines would be just another cost of doing business for these companies. None of them are high enough to really hurt them. We see this in fines to Microsoft, Google, Meta and multitude of other large corporations who are getting fined in regular intervals and they just move on - after they have challenged those fines on every possible court and dragged the process for years on end.
If the worst comes to worst, they start “buying” the training data from companies conveniently located in non-signature countries and have no knowledge what-so-ever what data these companies use for the model training, where they get it or how they get it.
I do hope at some point in time there is a global response to stop these abuses, but I am not holding my breath considering that even the global minimum tax is far from becoming reality and only just over 140 countries have signed up for it.
https://www.oecd.org/en/topics/global-minimum-tax.html
The G7 have reached agreement on a path forward for the global minimum tax and Pillar 2 of the G20 / OECD Inclusive Framework project on Base Erosion and Profit Shifting.
The agreement seeks to maintain the core objectives of Pillar 2 - combatting multinational tax avoidance—while promoting a stable global tax environment that supports fair competition. Recent discussions have considered U.S. Treasury concerns with the application of the rules alongside the U.S minimum tax system.
G7 partners have reached an understanding on a possible solution that would allow the US minimum tax system to operate alongside the Pillar 2 rules but take steps to ensure any substantial risks with respect to the level playing field or base erosion and profit shifting are addressed.
The G7 will now discuss and develop this understanding, and the principles upon which it is based, within the Inclusive Framework of over 140 countries and jurisdictions, while making clear that the removal of proposed retaliatory tax measures in U.S. legislation is essential for this further progress to be made.
https://www.reuters.com/business/finance/global-tax-deal-risk-first-pillar-teeters-2023-06-16/
“Pillar I has a much rockier path forward. Indeed it is quite likely that it will ultimately fail,” said tax lawyer Peter Barnes, who heads industry forum the International Fiscal Association.
…
“Pillar 1 will not be implemented by the United States. It will not pass Congress,” said one official close to the discussions at the Paris-based Organisation for Economic Cooperation and Development.
And of digital services tax:
The spread of digital services taxes could be a red flag for Republicans in Congress, who introduced a bill last month for a reciprocal levy on countries that target U.S. companies with “unfair taxes” under the global minimum tax.
U.S. Treasury Secretary Janet Yellen told CNBC last week that the bill had little chance of passing and that the United States would get on board with the global minimum.
So yeah, I don’t hold my breath waiting for any global solution to how to control AI companies. At least this regulation makes a small difference by giving back control to the publishers.