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Why American Companies (Usually) Fail in Europe

Onoya

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Hey y'all, i found a super interesting video about the struggles US companies often have when trying to expand in Europe. It's mainly due to different laws, cultures etc...
It's a short video ( 13:37 ), but i found it interesting and would love to hear about other's opinions^^

 
Also, there is one thing in the video that needs clarification.


Walmart in Germany didn't got fined because they tried to be competitive. They got fined because what Walmart tried to do was to less really really low, to the point of not making a profit, in order to make competitors to close, and then to rise again prices.

Little did they know that besides some moment (christmas etc...), it's illegal to sell stuff lower than the price you buyed it^^
 
Hey y'all, i found a super interesting video about the struggles US companies often have when trying to expand in Europe. It's mainly due to different laws, cultures etc...
It's a short video ( 13:37 ), but i found it interesting and would love to hear about other's opinions^^

1. Walmart sells very poor quality products, mostly from Asia (China, India, etc.).
2. They exploit unbridled capitalism; one would think Europe is less stupid than others.

Amazon is even worse, and many others as well.

Well, it's American oligarchs who will cause the disappearance of the USA; we already saw this in the USSR.
 
Also, there is one thing in the video that needs clarification.


Walmart in Germany didn't got fined because they tried to be competitive. They got fined because what Walmart tried to do was to less really really low, to the point of not making a profit, in order to make competitors to close, and then to rise again prices.

Little did they know that besides some moment (christmas etc...), it's illegal to sell stuff lower than the price you buyed it^^
Why is that and what if said company could buy it and sell it cheaper because they could save on expense.
Article 102 TFEU does allow for below cost pricing of goods a services by retailers. That is not prohibited.

What is prohibit is predatory pricing of goods by “dominant” retailer.
That was why Walmart left Germany.

It’s strange though that German courts ruled Walmart was a dominant retailer in Germany. At the time they only occupied 2-3 % of that retail market in Germany.
that sounds more like protectionist rulings by the German courts
 
1. Walmart sells very poor quality products, mostly from Asia (China, India, etc.).
2. They exploit unbridled capitalism; one would think Europe is less stupid than others.

Amazon is even worse, and many others as well.

Well, it's American oligarchs who will cause the disappearance of the USA; we already saw this in the USSR.
You know there are arguably legitimate concerns about Amazon. One thing that I have observed Amazon has done that is ultimately good. They have provided a market place for thousands of small independent businesses and manufacturers. Business and manufacturers who would have never had a chance in the old retail market place. Business who would never have been exposed to a market large enough to grow their business beyond just a regional specialty outlet.

As far as the quality complaint, one thing everyone seems to forget about capitalism. It’s the free will agreement between two parties to a business exchange. Be that two guys in a driveway discussing the price of a car or an individual checking out at a big box retailer.
If its cheap don’t buy it, no one is forcing you or anyone else’s to buy it.
Walmart will sink of swim on those decisions. That’s why I look for specialty manufacturers on Amazon. Manufacturers I would have no idea existed if it wasn’t for a company like Amazon. I would have never found my Helikon waxed anorak unless I found it on Amazon.
 
You know there are arguably legitimate concerns about Amazon. One thing that I have observed Amazon has done that is ultimately good. They have provided a market place for thousands of small independent businesses and manufacturers. Business and manufacturers who would have never had a chance in the old retail market place. Business who would never have been exposed to a market large enough to grow their business beyond just a regional specialty outlet.

As far as the quality complaint, one thing everyone seems to forget about capitalism. It’s the free will agreement between two parties to a business exchange. Be that two guys in a driveway discussing the price of a car or an individual checking out at a big box retailer.
If its cheap don’t buy it, no one is forcing you or anyone else’s to buy it.
Walmart will sink of swim on those decisions. That’s why I look for specialty manufacturers on Amazon. Manufacturers I would have no idea existed if it wasn’t for a company like Amazon. I would have never found my Helikon waxed anorak unless I found it on Amazon.
Amazon has had some positive effect in that direction absolutely but it also stifles competition and treats its employees poorly. And frankly, could be replaced by a public marketplace that gets such benefits while also not preventing multiple private options which Amazon intentionally makes sure you have few options.
 
Also, because there aren’t many other real options all those small sellers have to use Amazon and accept its fees and rules.
 
Amazon has had some positive effect in that direction absolutely but it also stifles competition and treats its employees poorly. And frankly, could be replaced by a public marketplace that gets such benefits while also not preventing multiple private options which Amazon intentionally makes sure you have few options.
So in what world can you site as an example a public marketplace that can provide this exposure this world wide market. That can provide this kind of opportunity for small businesses. Not even in a competitive comparison. One that is viable without perpetually escalating subsidies.
Again why is the assumption made that public or governmental sourcing of goods or services will be immune from the same corruptive human inclinations that exert themselves in the privet business world.

Does Amazon create some policies that might be unfair, possibly.
Or possibly it’s just a business decision to keep the business viable.

If Amazon does things that don’t work its sales and stocks fall. They fix it or they go out of business.
When a gov agencies programs don’t work, we have congressional hearings, nothing changes and the agencies get a bigger budget next year

But let’s make it public where even fewer individuals will have control over an even larger scope of the economy.
All while singing about the public good.

Don’t want to support Amazon or Walmart then don’t. But don’t pretend that limiting choices of retail goods down to even fewer or single choices will make things fairer or better.
 
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So in what world can you site as an example a public marketplace that can provide this exposure this world wide market. That can provide this kind of opportunity for small businesses.
Sure, I have 1 medium of public marketplace that you might be familiar with and find valuable. Currency. Currency is a publicly owned medium of commerce. But governments also very often operate public venues for markets.
Not even in a competitive comparison. One that is viable without perpetually escalating subsidies.
The USPS has managed to survive just fine until it was deliberately undermined and even then still works pretty well - not all public services will require infinite funding or be plagued with inefficiency.
Again why is the assumption made that public or governmental sourcing of goods or services will be immune from the same corruptive human inclinations that exert themselves in the privet business world.
None - that’s why when I mention USPS we have alternatives, because public services can have down falls, yet they can also facilitate trade. Amazon heavily uses USPS.
Does Amazon create some policies that might be unfair, possibly.

Or possibly it’s just a business decision to keep the business viable.
Hence why there should be an option people can use that isn’t strictly worried about making money.
If Amazon does things that don’t work its sales and stocks fall. They fix it or they go out of business.
When a gov agencies programs don’t work, we have congressional hearings, nothing changes and the agencies get a bigger budget next year
Just because public services can have their problems doesn’t mean that people shouldn’t have the option to sell their goods in a public marketplace.
But let’s make it public where even fewer individuals will have control over an even larger scope of the economy.
All while singing about the public good.
Again, public services don’t mean no private options - it means that the options aren’t solely motivated to extract.
Don’t want to support Amazon or Walmart then don’t. But don’t pretend that limiting choices of retail goods down to even fewer or single choices will make things fairer or better.
I never advocated for that, I advocated for a public marketplace that makes it so that people are not forced to use Amazon. Remember Amazon has Amazon basics as well and is a competitor to a lot of the businesses who have no choice but to use Amazon.
 
And hopefully none of that was too political because I also want to note to tie it all into Europe, public marketplaces are more common in Europe and other parts of the world and rather frowned upon here which is one of the ways which American companies can fail to fit in
 
Why is that and what if said company could buy it and sell it cheaper because they could save on expense.
Article 102 TFEU does allow for below cost pricing of goods a services by retailers. That is not prohibited.
It's not about a company that managed to save on expense and sell it lower than the competitions. It's about a company that tried to sell for lower than the price they buyed it in order to drive out the competition, which isn't allowed in Germany. (and shouldn't be allowed imo)

The article 102 doesn't allow that at all, and those interdictions are often in the country's law and not in EU's laws.
 
It's not about a company that managed to save on expense and sell it lower than the competitions. It's about a company that tried to sell for lower than the price they buyed it in order to drive out the competition, which isn't allowed in Germany. (and shouldn't be allowed imo)

The article 102 doesn't allow that at all, and those interdictions are often in the country's law and not in EU's laws.
Wal-mart is accused of that in almost every city in the USA when they build/open a new store. Come in. Lower prices on decent items, tun the mom/pop stores out of business, then progressively get cheaper and thinner profucts at an ever increasing cost. They did it again and again. People complain. Law suits fly but everyywas sneaking in and out of the store in odd hours 😎

To be clear, afaik, walmart has only been occasionally accused of this behavior and it may simply be persons envious of Walmarts success-Torch. I❤️Walmart!
 
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German law does not prohibit below cost pricing unless the courts rule it preditory pricing

Below Cost Pricing in Germany​

General Prohibition​

German law does not explicitly prohibit below cost pricing. However, it can be considered an unfair trading practice under certain conditions. Below cost pricing may lead to anti-competitive behavior, particularly if it is used to eliminate competition or create a monopoly.

Legal Framework​

  • Unfair Trading Practices: The prohibition of unfair trading practices applies to large commercial buyers and smaller suppliers. If below cost pricing is used to pressure suppliers or harm competitors, it may be deemed illegal.
  • Antitrust Law: Under German antitrust law, practices that distort competition, such as predatory pricing (selling below cost to drive competitors out of the market), can be challenged.

Enforcement​

The Federal Cartel Office (FCO) monitors pricing practices. If below cost pricing is found to harm competition, the FCO can take action against the offending company.

Conclusion​

While below cost pricing is not outright banned, it can lead to legal issues if it is deemed anti-competitive or unfair. Companies should be cautious and ensure their pricing strategies comply with competition laws.
ble.de

Question who’s business is it to tell business and customers what the agreed upon price shall be?
Purchasing goods and service is a private contractual agreement between a business and a consumer. What business is it of the government to intervene.
Why gov the government that leeway to rule on matters like this.

As far as predatory pricing is concerned
If a business is using monopolistic practices, sure using overwhelming pricing power to purposely drive out a competitor, fine.

But lost leader pricing is not specifically illegal. Maybe dangerous depending on the capriciousness of European courts.
 
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Wal-mart is accused of that in almost every city in the USA when they build/open a new store. Come in. Lower prices on decent items, tun the mom/pop stores out of business, then progressively get cheaper and thinner profucts at an ever increasing cost. They did it again and again. People complain. Law suits fly but everyywas sneaking in and out of the store in odd hours 😎

To be clear, afaik, walmart has only been occasionally accused of this behavior and it may simply be persons envious of Walmarts success-Torch. I❤️Walmart!
Walmart had a saying price it low and watch it go. Some items might be below cost. But turns of items sold is what made up the difference unprofitably.
If a store has a 1mill dollar in merchandise and a carrying cost on that merchandise of 10%. The faster you could move it out improved profitability.
“Turns” impacted profit as much as margin.
 
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Sure, I have 1 medium of public marketplace that you might be familiar with and find valuable. Currency. Currency is a publicly owned medium of commerce. But governments also very often operate public venues for markets.

And governments have done such a good job of that. Inflation has increased 92% cumulative since 2000.
I wouldn’t call that a success. The national debt was 5.8 trillion in 2000, today it’s 36 trillion.
They’ve done such a good job with monetary policy.
FAIL
The USPS has managed to survive just fine until it was deliberately undermined and even then still works pretty well - not all public services will require infinite funding or be plagued with inefficiency.
9 billion deficit in 2024.
Another failure
None - that’s why when I mention USPS we have alternatives, because public services can have down falls, yet they can also facilitate trade. Amazon heavily uses USPS.
And Amazon contributed approximately 7.5 % to the USPO bottom line in 2025. 6 billion dollars
Hence why there should be an option people can use that isn’t strictly worried about making money.
If your not going to profit your not going to have anyone to employ
Just because public services can have their problems doesn’t mean that people shouldn’t have the option to sell their goods in a public marketplace.
Again, public services don’t mean no private options - it means that the options aren’t solely motivated to extract.

I never advocated for that, I advocated for a public marketplace that makes it so that people are not forced to use Amazon. Remember Amazon has Amazon basics as well and is a competitor to a lot of the businesses who have no choice but to use Amazon.
Why do people get up and go to work?
To make money. TO PROFIT from their labor.
Absolutely no one labors at anything if there is not a profit expectation.
That includes public workers.

So I work, manage or own a private business.
I should pay taxes so the government can compete against the success or failure of what I’m investing so much time and labor and capital.
Do you know how stupid that sounds.
 
It's not like American companies are universally failing in Europe - the IT sector is doing well (with Apple, Microsoft and NVidia products everyehwere), and so are some fast food chains (such as McDonald's, Subway and Starbucks). Hell, even Amazon is around - but, again, in the context of IT services (primarily AWS/S3/EC2). Other household names that come to mind include UPS, Procter&Gamble, Coca-Cola and Boeing.

The US automotive sector is, indeed, in the process of being pushed out of Europe by the Chinese. Tesla took a big hit in the wake of Elon Musk's antics, but you still see those around occasionally - as well as Fords. It's worth noting, however, that monster pickups (which seem to be all the rage with aging US gen-Xers with a weird cargo fetish) are entirely unsuitable for European roads and parking spaces, both of which tend to be much narrower than their US counterparts. And of course you don't see US-made trucks at all, since about 99% of trucks on European roads are cabovers (due to vehicle length restrictions).

Focusing exclusively on department stores and/or outlet malls skews the picture, as that is a saturated market, and the American model of shopping (go only once in a while, but when you do - fill up your pickup truck to the brim) is not at all popular over here.
 
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And governments have done such a good job of that. Inflation has increased 92% cumulative since 2000.
I wouldn’t call that a success. The national debt was 5.8 trillion in 2000, today it’s 36 trillion.
They’ve done such a good job with monetary policy.
FAIL
Do you think private companies would issue better currency?
9 billion deficit in 2024.
It worked for a long time before it was intentionally changed to produce a deficit, for the sake of arguing for privatization.
If your not going to profit your not going to have anyone to employ
you don’t have to profit to pay wages, profit exists after wages.
Why do people get up and go to work?
To make money. TO PROFIT from their labor.
Absolutely no one labors at anything if there is not a profit expectation.
That includes public workers.

So I work, manage or own a private business.
I should pay taxes so the government can compete against the success or failure of what I’m investing so much time and labor and capital.
Do you know how stupid that sounds.
Versus being only able to list your product on a single marketplace that is unaccountable to the people? (the idea of capitalism correcting for it in the free market assumes there’s not a monopoly)

Amazon uses USPS, as do FedEx and UPS actually on some level, which is one of the benefits actually when government builds competing infrastructure is since it’s public, aspects of it can be used by private companies wishing to set up their version. And again, the deficit is unnatural and due to the government taking deliberate action to break it in the name of privatization, in most of the CENTURIES it existed, it turned a profit and was one of Americas prized achievements, it used to be a source of national pride. The constitution outlines we have one.
 
Do you think private companies would issue better currency?
Maybe not not their job too anyway, just pointing out that gov monetary policy is not a success which you claimed it was.
It worked for a long time before it was intentionally changed to produce a deficit, for the sake of arguing for privatization.
Well it’s take a long time to break them. It’s been they have met budget once in the last 26 years
For that matter the PO ran chronic deficits ever since WW2

you don’t have to profit to pay wages, profit exists after wages.
That is correct. But you do have to show profitability in order to get operating loans or loans for capital expenditures.
Or to generate enough investment interest to see your stock price stay stable or grow. You know that thing that 90 % of Americans relies upon for retirement either through direct investment or pension plans.
And no government payor pensions is not viable. That is the type of pensions at the post office that arecausing them to not be financially sound. A government payor pension.
Versus being only able to list your product on a single marketplace that is unaccountable to the people? (the idea of capitalism correcting for it in the free market assumes there’s not a monopoly)
Agreed monopolies should be confronted, that is a capitalist economies fundamental principle. One which we don’t enforce.
Amazon uses USPS, as do FedEx and UPS actually on some level, which is one of the benefits actually when government builds competing infrastructure is since it’s public, aspects of it can be used by private companies wishing to set up their version. And again, the deficit is unnatural and due to the government taking deliberate action to break it in the name of privatization, in most of the CENTURIES it existed, it turned a profit and was one of Americas prized achievements, it used to be a source of national pride. The constitution outlines we have one.
I’m not disputing we should have a national post office.
The PO is behind the eight ball because in 2006 Congress mandated the Post office pre PRE-PAY 75 years worth of retirees health benefits. That has since been repealed.
Unfunded liabilities for their pension system has plagued them since.
Mismanagement and not adjusting to a changing markets is what plagued them.
Not any nefarious plot at privatization.

The pony express that delivered mail across the continent wasn’t paid or run by the PO. And the PO has been privatizing parts of its operations since 1970
 
Maybe not not their job too anyway, just pointing out that gov monetary policy is not a success which you claimed it was.
I wasn’t saying it was some massive success, just that currency is one of the ways governments facilitate markets.
Well it’s take a long time to break them. It’s been they have met budget once in the last 26 years
For that matter the PO ran chronic deficits ever since WW2
That is correct. But you do have to show profitability in order to get operating loans or loans for capital expenditures.
Non profits get loans all the time.
Or to generate enough investment interest to see your stock price stay stable or grow.
Which is why publicly owned infrastructure that doesn’t require share-based investment can produce some benefits. Some downfalls yes but that’s why that infrastructure shouldn’t have a monopoly either.
You know that thing that 90 % of Americans relies upon for retirement either through direct investment or pension plans.
And no government payor pensions is not viable. That is the type of pensions at the post office that arecausing them to not be financially sound. A government payor pension.
Pre paying those types of pensions has an effect, but it’s not like the government is unable to use stock market retirement plans.
Agreed monopolies should be confronted, that is a capitalist economies fundamental principle. One which we don’t enforce.

I’m not disputing we should have a national post office.
The PO is behind the eight ball because in 2006 Congress mandated the Post office pre PRE-PAY 75 years worth of retirees health benefits. That has since been repealed.
Unfunded liabilities for their pension system has plagued them since.
Mismanagement and not adjusting to a changing markets is what plagued them.
Not any nefarious plot at privatization.
No other agency is required to pre pay 75 years of health benefits. That bill was a deliberate sabotage of the postal service.
The pony express that delivered mail across the continent wasn’t paid or run by the PO. And the PO has been privatizing parts of its operations since 1970
And it existed publicly for centuries. The post office has existed nearly as long as this country. And its service especially in rural areas and areas where it’s unprofitable to serve has declined because of that privatization (and other measures such as the incompetent post master)

I’m not arguing for Amazon not to exist, I’m saying the government should provide a public marketplace as an alternative. Because I also don’t think forcing Amazon to facilitate a profit driven competitor to break up that monopoly would actually benefit consumers or business anyway, and I think that’s less reasonable than a public marketplace being an option.

Tying back into the rest of the world, public markets are exceptionally common in the world and serve a vital role in feeding massive amounts of people, I would actually say I think the existence of a public marketplace actually facilitates the free market more and makes the free markets ideas of a voluntary business agreement more viable
 
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