I haven't heard any rumors to that effect. I've talked to small business owners who have gotten fined for various infractions in NYC, just casually, and my impression is that it's just bureaucracy in action--lots of rules, randomly enforced by people who individually interpret them one way or another.
For example, a store selling used equipment was fined for not individually labeling the equipment as used. All equipment in the store is used, it's all outdated stuff, and it's completely obvious. But one day someone from the city shows up and levies a fine. So now this scuffed, obsolete gear from the 1990s has a "used" sticker on it.
I think you also have to ask are the regulators really finding real crimes or prosecuting grey areas that will win lots of money out of politically unpopular companies. New York makes a lot of money out of these fines which they can use for whatever they want.
The NYT piece says they will have to buy back certain models and provide above market trade ins on others, I believe those actions are separate from the fines.
The fact that part of the fines goes either to the municipality that installed the things or their manufacturer puts them in a conflict of interest, and that is something that must be avoided at all costs. It's not enough that the law is clean, it must also appear clean.
Every lawyer does that. If you have ever called one about this conflict or that the very first question that they ask who you have a conflict with. If they have dealings with that person they will tell you that they cannot take your business. I don't understand why cities think they are exempt.
I'm in two minds with these kinds of fines (maybe not super relevant for this specific fine).
1. Do these big megacorps just not care about rules, and they look at fines as a cost of doing business while the steam roll through industries.
2. Have lawmakers completely failed for the past decades to effectively referee tech, and so instead of having sane regulation and clear rules everything has to get decided in courts with fines.
Probably both are true, and the real losers are small businesses trying to get started.
It seems like such a minor fine that it's likely doing the opposite: showing businesses that it's completely okay to do so, and the worst that can happen is a slight fine.
For example, a store selling used equipment was fined for not individually labeling the equipment as used. All equipment in the store is used, it's all outdated stuff, and it's completely obvious. But one day someone from the city shows up and levies a fine. So now this scuffed, obsolete gear from the 1990s has a "used" sticker on it.
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