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Paul Merrell

France Threatens Google With Privacy Fines - ABC News - 0 views

  • France is giving Google three months to be more upfront about the data it collects from users — or be fined. Other European countries aren't far behind.
  • The French agency that regulates information technology says that five other European countries are taking similar steps in a staggered offensive against Google's privacy policy between now and the end of July. It says Google largely ignored earlier recommendations from European regulators.
  • Paris' formal warning gives the company three months to make changes to its privacy practices. They include specifying to users what it is using personal data for, and how long it's held. Regulators also want Google to let users opt out of having their data centralized — for example, when data from online searches, Gmail and YouTube are crunched into a single location.
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    Note that we have yet to hear from European regulatory entities with power to inflict far bigger hurt on cloud companies like Google, e.g., the EC's DG Competition, national security forces, E.U. Parliament, etc. 
Paul Merrell

News - Antitrust - Competition - European Commission - 0 views

  • Google inquiries Commission accuses Google of systematically favouring own shopping comparison service Infographic: Google might be favouring 'Google Shopping' when displaying general search results
  • Antitrust: Commission sends Statement of Objections to Google on comparison shopping service; opens separate formal investigation on AndroidWed, 15 Apr 2015 10:00:00 GMTAntitrust: Commission opens formal investigation against Google in relation to Android mobile operating systemWed, 15 Apr 2015 10:00:00 GMTAntitrust: Commission sends Statement of Objections to Google on comparison shopping serviceWed, 15 Apr 2015 10:00:00 GMTStatement by Commissioner Vestager on antitrust decisions concerning GoogleWed, 15 Apr 2015 11:39:00 GMT
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    The more interesting issue to me is the accusation that Google violates antitrust law by boosting its comparison shopping search results in its search results, unfairly disadvantaging competing shopping services and not delivering best results to users. What's interesting to me is that the Commission is attempting to portray general search as a separate market from comparison shopping search, accusing Google of attempting to leverage its general search monopoly into the separate comoparison shopping search market. At first blush, Iim not convinced that these are or should be regarded as separable markets. But the ramifications are enormous. If that is a separate market, then arguably so is Google's book search, its Google Scholar search, its definition search, its site search, etc. It isn't clear to me how one might draw a defensible line taht does not also sweep in every new search feature  as a separate market.   
Paul Merrell

Excite News - EU files antitrust charges against Google - 0 views

  • BRUSSELS (AP) — The European Union's competition chief is filing an antitrust complaint alleging Google has been abusing its dominance in Internet searches and is opening a probe into its Android mobile system.EU Competition Commissioner Margrethe Vestager said Wednesday she is "concerned that the company has given an unfair advantage to its own comparison shopping service."Vestager said the separate antitrust probe into Android will investigate whether the Internet giant relies on anti-competitive deals and abuses its dominant position in Europe's mobile market.Vestager said her chief goal was to make sure multinationals "do not artificially deny European consumers as wide a choice as possible or stifle innovation".Google's general counsel Kent Walker wrote late Tuesday that a "statement of objections" to Google's business practices was to be released by Vestager Wednesday.
Paul Merrell

Luxembourg: a tax haven by any other name? | nsnbc international - 0 views

  • The revelations that global and multinational businesses have been brokering “secret” tax deals with Luxembourg to avoid paying taxes in their home countries, may be the first time an entire country has been implicated in tax avoidance collusion. A cache of leaked agreements uncovered by the International Consortium of Investigative Journalism (ICIJ) appears to show that major companies have used the tiny EU state to dramatically cut their tax liabilities.
  • The ICIJ’s six-month investigation claims to have found household companies such as Aviva, HSBC, E-on, Tyco, Pepsi, IKEA and Deutsche Bank were among those which had taken advantage of legal tax avoidance schemes in Luxembourg. Luxembourg is routinely named as a tax haven on many of the world’s authoritative lists of tax havens, including the one compiled by me and my two co-authors, Richard Murphy and Christian Chavagneux. But Luxembourg has managed to remain “under the radar” not least because its politicians and bankers have been denying for years that it is, or ever was, a tax haven. The revelations suggest Luxembourg has been playing a double game. Luxembourg has been quick to comply with new regulations proposed by the Organisation for Economic Co-operation and Development (OECD) and the EU. In 2011, the OECD global forum on transparency and exchange of information commended Luxembourg for introducing new rules governing banking information or information protected by secrecy rules.
  • But at the same time, the revelations show that 340 well-known foreign companies have entered into secret agreements with the Luxembourg authorities, brokered by the accounting firm PricewaterhouseCoopers. To take a random example that applies for many of these companies, the ICIJ have a letter to the Luxembourg tax administration written on a PwC letterhead, where FedEx lays down its plan to set up a limited liability company as a tax resident in Luxembourg – so subject in principle to Luxembourg’s corporate income tax. The letter then provides details of a proposed shareholding arrangement that will ensure, I quote, that “neither that Fedex SCS nor its shareholders will be subject to corporate income tax, Municipal Business Tax and Net Wealth tax in Luxembourg”. The letter implies that Luxembourg will serve in effect as a tax haven for Fedex.
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  • There have been a number of other highly publicised tax evasion and avoidance cases recently. For instance, many cases in the US involved branches or even key individuals working in branches of well-known Swiss and Israeli banks in the US, including UBS, Credit Swiss or Bank Leumi, or alternatively branches of American banks in Switzerland. But these tended to involve private firms. The Swiss government professed to have had no knowledge of such activities. Indeed, Swiss law prohibited Swiss banks, whether domestic or international, from providing any information on their clients to the Swiss state. This is a scandal with a difference. The leaked PricewaterhouseCoopers books imply there has been systemic collusion between companies from all over the world and the Luxembourg authorities in flagrant contravention of EU rules. The documents suggest that preferential tax treatments were guaranteed to these companies prior to their incorporation in Luxembourg.
  • This is the first case of suspected collusion between a government and a foreign firm in tax avoidance matters that I am aware of. In that sense, the current scandal places Luxembourg on par with Greece whose officials allegedly provided misleading data on Greek national debt to the Commission. More embarrassingly, all this took place during the time when the current president of the European Commission, Jean-Claude Juncker, served as the prime minister of Luxembourg from 1995-2013. It is difficult to imagine that the prime minister of such a small state was unaware such deals were taking place. There is a difference between the court of law and the court of public opinion. But we know from recent cases that the EU Commission has tended to follow the court of public opinion with criminal investigations of its own, as was the case of Amazon. It is likely that the Commission will now investigate these leaks and may impose fines on Luxembourg. I doubt Juncker can ride this one out.
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    Woo-hoo! The IRS and Congress will be interested in this one too.  Now if someone would kindly send the docs to Wikileaks, the nations of the world can prosecute companies for tax evasion. But this time, would you all, pretty please, prosecute some human beings too and no settlements without at least a couple of years behind bars?
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