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Elevator cartel fines go through the roof
- The European Commission imposed its biggest ever cartel fine of €992 million on makers of lifts and escalators. It fined 17 subsidiaries of Otis, KONE, Schindler and ThyssenKrupp plus a subsidiary of Mitsubishi Elevator Europe for running a cartel in four EU countries between 1995 and 2004, rigging bids for procurement contracts, price-fixing and sharing out projects and markets. The Commission warned that the effects of the cartel could last for the next 20-50 years because it involved long-term maintenance contracts.
Independent labels give blessing for Warner-EMI deal
- Warner Music Group has won the support from a group of independent record labels for its bid to take over struggling UK music firm EMI. IMPALA, a group representing 3,500 independents, confirmed on 20 February that it had promised to support Warner’s bid in return for pledges that the merged group would guarantee competition, sell off some of its catalogue to reduce market share and help independents develop on-line music sales. IMPALA earlier blocked an attempt by German music group Bertelsmann to merger with Sony Music, saying that reducing the number of music industry giants from five to four would hurt competition and creativity. In July 2006, the European Court of First Instance upheld IMPALA’s appeal against the European Commission’s decision to approve the merger, saying that the Commission had not examined the impact thoroughly enough.
Airbus set to shed 10,000 jobs
- Airbus is expected to announce job losses of around 10,000 or 18% of its total workforce as part of plans to cut costs. The French chief executive of Airbus Louis Gallois delayed announcement of the plans following disagreements among the different member companies of the Airbus consortium. The issue will be discussed by French President Jacques Chirac and German Chancellor Angela Merkel on Friday (23 February).
McCreevy warns of finance law ‘gold-plating’
- Charlie McCreevy, the European commissioner for the internal market, warned in a speech in London on 20 February that the aim of creating a level playing-field for financial market operators across the EU could be undermined through inconsistent implementation of the Markets in Financial Instruments Directive (MiFiD). He warned against ‘gold-plating’ and called on all parties to find "pragmatic and workable solutions to ensure we maximise the benefits from MiFiD".
Reding tunes into radio spectrum
- The European Information Society Commissioner Viviane Reding has outlined plans for more flexible use for radio spectrum. On 20 February Reding presented a communication on spectrum, setting out steps to open up access to frequency bands currently reserved for 3G mobile communication services. The initiative is designed to tailor radio frequency allocation better to market demands.
Fifteen years after the 1992 deadline, the plan to complete the EU’s single market has still not been fulfilled. This week the European Commission took the first step in a renewed drive to achieve the goal of a single market for goods, capital, services and labour by launching a review of the current gaps and failings across the Union.
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