Is EU Digital Markets Act a Bearish News on Amazon? International Segment is not Important due to less Operating Income.

According to “Amazon reportedly reaches deal with EU regulators over anti-competitive practices”,

The consequences for breaking the DMA’s rules can be severe. Companies can face potential fines of up to 10% of their global revenues, and for repeat offenders, this will increase to 20%.

The reports said the punishment is 10% of the global revenues. However, the global revenues definition is as below

Global Revenue means revenue generated from clients located and work performed outside the North American continent.

Thus, the question is how much is 10% of Amazon’s global revenues. Is the global segment important for Amazon? Let’s look at the graph for the potential answer.

As we can see, the most important operating income is from AWS. International operating income loss is only 4% (-924 / 24879 million $). Thus, without any doubt, this bearish news cannot provide any valuable information for investors. The punishment according to the news is only 0.4% (4% * 10%) which is absolutely not significant.