France to take legal action against Google, Apple for ‘abusive’ practices

The French government’s action against Apple and Google could result in penalties reaching several million euros. (AFP)
Updated 14 March 2018
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France to take legal action against Google, Apple for ‘abusive’ practices

PARIS: France will take legal action against Google and Apple for “abusive business practices,” Finance Minister Bruno Le Maire said Wednesday as transatlantic ties threaten to be riven by a trade war.
“I believe in an economy based on justice and I will take Google and Apple before the Paris Commercial Court for abusive business practices” against French start-ups, Le Maire said on RTL radio.
He said start-ups face conditions imposed on them when selling their apps on Google and Apple which “also gather data” and “both can unilaterally modify contracts.”
The minister said the situation is unacceptable.
“I consider that Google and Apple, as powerful as they are, shouldn’t treat our start-ups and our developers in the way they do today,” said Le Maire.
The action against the firms comes as US President Donald Trump has moved toward imposing a 25-percent tariff on imported steel and 10-percent tariff on imports of aluminum.
It is unclear if European nations will obtain waivers, with Trump having singled out the EU as treating the United States badly in trade ties and threatening to tax cars as well.
Le Maire has previously threatened to tax the two firms based on their sales in France, denouncing the legal strategies they use to pay taxes at lower rates in other EU countries.
He added the current action could result in penalties reaching several million euros.
“My responsibility is to ensure economic law and order,” said Le Maire. “There are rules. There is justice. It should be respected.”
Tech start-ups are a favorite of French President Emmanuel Macron, who has sought to overhaul the nation’s laws and regulations to allow entrepreneurs to flourish.


US unveils new veto threat against WTO rulings

Updated 23 June 2018
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US unveils new veto threat against WTO rulings

  • US tells WTO appeals rulings in trade disputes could be vetoed if they took longer than the allowed 90 days
  • Trump, who has railed against the WTO judges in the past, threatens to levy a 20 percent import tax on European Union cars

GENEVA: The United States ramped up its challenge to the global trading system on Friday, telling the World Trade Organization that appeals rulings in trade disputes could be vetoed if they took longer than the allowed 90 days.
The statement by US Ambassador Dennis Shea threatened to erode a key element of trade enforcement at the 23-year-old WTO: binding dispute settlement, which is widely seen as a major bulwark against protectionism.
It came as US President Donald Trump, who has railed against the WTO judges in the past, threatened to levy a 20 percent import tax on European Union cars, the latest in an unprecedented campaign of threats and tariffs to punish US trading partners.
Shea told the WTO’s dispute settlement body that rulings by the WTO’s Appellate Body, effectively the supreme court of world trade, were invalid if they took too long. Rulings would no longer be governed by “reverse consensus,” whereby they are blocked only if all WTO members oppose them.
“The consequence of the Appellate Body choosing to breach (WTO dispute) rules and issue a report after the 90-day deadline would be that this report no longer qualifies as an Appellate Body report for purposes of the exceptional negative consensus adoption procedure,” Shea said, according to a copy of his remarks provided to Reuters.
An official who attended the meeting said other WTO members agreed that the Appellate Body should stick to the rules, but none supported Shea’s view that late rulings could be vetoed, and many expressed concern about his remarks.
Rulings are routinely late because, the WTO says, disputes are abundant and complex. Things have slowed further because Trump is blocking new judicial appointments, increasing the remaining judges’ already bulging workload.
At Friday’s meeting the United States maintained its opposition to the appointment of judges, effectively signalling a veto of one judge hoping for reappointment to the seven-seat bench in September.
Without him, the Appellate Body will only have three judges, the minimum required for every dispute, putting the system at severe risk of breakdown if any of the three judges cannot work on a case for legal or other reasons.
“Left unaddressed, these challenges can cripple, paralyze, or even extinguish the system,” chief judge Ujal Singh Bhatia said.
Sixty-six WTO member states are backing a petition that asks the United States to allow appointments to go ahead. On Friday, US ally Japan endorsed the petition for the first time, meaning that all the major users of the dispute system were united in opposition to Trump.