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SCENARIO Please Use the Following to Answer the Next Question

question 54

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SCENARIO Please use the following to answer the next question: T-Craze, a German-headquartered specialty t-shirt company, was successfully selling to large German metropolitan cities. However, after a recent merger with another German-based company that was selling to a broader European market, T-Craze revamped its marketing efforts to sell to a wider audience. These efforts included a complete redesign of its logo to reflect the recent merger, and improvements to its website meant to capture more information about visitors through the use of cookies. T-Craze also opened various office locations throughout Europe to help expand its business. While Germany continued to host T-Craze's headquarters and main product-design office, its French affiliate became responsible for all marketing and sales activities. The French affiliate recently procured the services of Right Target, a renowned marketing firm based in the Philippines, to run its latest marketing campaign. After thorough research, Right Target determined that T-Craze is most successful with customers between the ages of 18 and 22. Thus, its first campaign targeted university students in several European capitals, which yielded nearly 40% new customers for T-Craze in one quarter. Right Target also ran subsequent campaigns for T-Craze, though with much less success. The last two campaigns included a wider demographic group and resulted in countless unsubscribe requests, including a large number in Spain. In fact, the Spanish data protection authority received a complaint from Sofia, a mid-career investment banker. Sofia was upset after receiving a marketing communication even after unsubscribing from such communications from the Right Target on behalf of T-Craze. Why does the Spanish supervisory authority notify the French supervisory authority when it opens an investigation into T-Craze based on Sofia's complaint?

Definitions:

Quantitative Threshold

A specified numerical limit or benchmark that must be met or exceeded, often used in contexts like financial regulation or performance measurement.

Reportable

Refers to information or actions that must be disclosed to regulatory authorities or in financial statements according to legal or regulatory requirements.

Combined Revenues

The total revenue generated by a group of companies or divisions consolidated into a single figure.

Commercial Substance

A situation where the risk, timing, or amount of the entity's future cash flows changes as a result of a financial transaction.