Business

BERLIN — Germany’s anti-trust authority has launched an investigation into whether US ecommerce giant Amazon is exploiting its market dominance in its relations with third-party retailers who use its website as a marketplace.

The Federal Cartel Office said in a statement on Thursday that it had received many complaints from traders about the business practices of Amazon of late.

“Amazon acts as a kind of ‘gatekeeper’ to customers. The double role as biggest trader and biggest marketplace means there is a potential to impede other traders on the platform,” said cartel office President Andreas Mundt.

Mundt said the investigation would seek to examine business conditions that Amazon imposes on the traders which use its site, including a lack of transparency over terminations, delayed payments and shipping conditions.

Amazon’s German division was not immediately available for comment.

Germany is Amazon’s second biggest market. It has faced a long-running battle with unions in the country over pay and conditions for logistics workers, who staged another round of strikes last week.

The country’s antitrust watchdog is also investigating Facebook after finding that the social media giant abused its market dominance to gather data on people without their knowledge or consent.

LONDON — The dollar rose for a fourth straight day on Wednesday as rising trade tensions prompted investors to seek the safe haven of the greenback, although a speech by the Federal Reserve’s (Fed) chairman may curb those gains.

Expectations the Fed will raise interest rates twice more are priced into markets, but recent criticism of the Fed by US President Donald Trump has raised concerns the central bank may be wary of further tightening.

“Powell’s speech will be the highlight for markets today, and if he chooses to strike a dovish stance, that may signal more headwinds for the dollar,” said Morten Helt, a currency strategist at Danske Bank, referring to Fed Chairman Jerome Powell.

Against a basket of other currencies, the dollar drifted higher to 97.39, its highest level in two weeks and not far from its 2018 high. It later fell back to trade flat on the day as the euro and the British pound made some headway.

The dollar had been under pressure in recent weeks on signs the Fed might slow the pace of rate increases amid slowing global growth, peak corporate earnings and the escalating trade tensions.

“How concerned the Fed sounds about the current economic slowdown will be seen as an indication as to how quickly a rate pause might come,” said Thu Lan Nguye, a currency strategist with Commerzbank in Frankfurt. “I would be prepared for increased volatility in USD exchange rates.” 

Investors will also focus on whether Powell addresses growing hostility from Trump, who said in an interview on Tuesday he is “not even a little bit happy” with the Fed chairman and that the central bank’s policies were hurting the economy.

Dollar strength also reflected risks around the G-20 summit in Buenos Aires between November 30 and December 1. Trump and his Chinese counterpart, Xi Jinping, are scheduled to discuss contentious trade matters there.

Trump said this week that it was “highly unlikely” he would accept China’s request to hold off a planned increase in tariffs. That drove investors to safe-haven currencies such as the dollar. 

The yen, another currency considered a safe place to park cash, on Wednesday hit a two-week low of 113.90, suggesting investors were far from panicked about the latest trade rhetoric.

The euro fell 0.2 per cent to $1.1267 but later recovered to $1.1285, to remain unchanged on the day. 

The euro has lost 1.5 per cent of its value in recent sessions on signs the eurozone economy is weakening and on tension between the European Union and Italy over Rome’s budget.

Sterling rallied towards $1.28 and 88 pence versus the euro as traders positioned before a UK parliamentary vote next month on Britain’s withdrawal agreement from the EU. 

Prime Minister Theresa May is expected to lose the vote, but there is some hope the opposition Labour Party could push for a second referendum if she fails to get her deal through parliament. 

LONDON — Stock markets headed south on Tuesday with traders on edge after US President Donald Trump warned he would ramp up his trade war with China should he fail to reach a deal with Chinese leader Xi Jinping at upcoming talks.

The pound, meanwhile, suffered after Trump warned Prime Minister Theresa May’s EU divorce agreement could hamper the chances of a trade deal between Washington and London.

Monday saw a global stock markets rally, fuelled by rising oil prices, Italy’s softer tone in its budget standoff with Brussels and May’s Brexit agreement with the European Union.

“A strong, sharp move higher in global equities faded almost as quickly as it occurred... in what is a clear sign of the growing sensitivity to this [trade] matter heading into the G-20 meetings later this week in Buenos Aires,” noted David Cheetham, chief market analyst at traders XTB.

“Comments from US President Trump... that downplayed the chances of a US-UK trade deal after Brexit have no doubt not helped the pound’s plight,” Cheetham said, adding that further pressure was coming from May’s struggle to get her Brexit deal approved by the UK parliament.

Elsewhere, traders are looking to see if China and the US will be able to work out an agreement that brings them back from the brink of a tariffs row that threatens to dent global growth.

In a paper published on Tuesday, European Central Bank researchers said that while rising protectionism’s impact on stocks and bonds has been “contained”, a global trade war risks “strong financial market corrections”.

While the Trump-Xi meeting is the main event this week, investors are also keeping an eye on speeches from top Federal Reserve officials including boss Jerome Powell, which could signal a slower pace of interest rate hikes.

Rising US borrowing costs — fuelled by surging US growth — have been a major cause of concern for investors but recent comments from the top central banker appear to show a more dovish outlook for 2019 as the global economy slows.

The pound dropped against the dollar and euro following Trump’s comments about May’s draft Brexit deal.

“Sounds like a great deal for the EU,” he said at the White House on Monday. “You know, right now, if you look at the deal, they may not be able to trade with us, and that wouldn’t be a good thing,” he added.

Oil prices steadied after recent extreme volatility.

As trade tensions begin to bite on the global economy, analysts are predicting slower growth into next year, which would translate into less demand for oil. 

“It has been our long-held view that slower global economic activity would be a factor weighing on oil demand in 2019 and that the market would move into surplus,” London-based research consultancy Capital Economics said.

TOKYO — Mitsubishi Motors Corp. said on Monday its board removed Carlos Ghosn from his role as chairman, following his arrest and ouster from alliance partner Nissan Motor Co. last week for alleged financial misconduct.

Ghosn's ouster marks the end of his chairmanship of Japanese automakers, just two years after he was praised for bringing a steadying hand to Mitsubishi Motors following a cheating scandal in 2016. CEO Osamu Masuko will become temporary chairman, the automaker said. 

The move comes amid discontent over French partner Renault SA's role in the 19-year alliance of which Ghosn was the driving force. Sealed in 1999 when Nissan was rescued from near-bankruptcy, it was enlarged in 2016 to include Mitsubishi and enabled the members to jointly develop products and control costs.

The alliance vies with Volkswagen AG and Toyota Motor Corp. for the ranking of the world's biggest automaker. 

Even as Nissan has recovered and grown rapidly, it remains a junior partner in the shareholding structure. Renault owns 43 per cent of Nissan and the Japanese automaker holds a 15 per cent non-voting stake in the French firm. And Nissan is almost 60 per cent bigger than Renault by sales. 

Top alliance executives are meeting this week in Amsterdam, aiming to shield their joint operations from the fallout of Ghosn's arrest as a power struggle between Nissan and Renault looms. Renault has refrained from firing him as chairman and CEO.

Nissan CEO Hiroto Saikawa told staff on Monday that power was too concentrated with Ghosn and that in future better communication between alliance board members and executives would help preserve independence and generate synergies among the automakers, a Nissan spokesman said. 

Ghosn was pushing for a deeper tie-up, including potentially a full merger between Renault and Nissan at the French government's urging, despite strong reservations at the Japanese firm.

Nissan removed Ghosn at a high stakes board meeting on Thursday after allegations of understating his income and using company money for personal use.

Ghosn has denied the allegations, public broadcaster NHK reported on Sunday. 

Nissan holds a controlling 34 per cent stake in Mitsubishi Motors and has two executives on the board.

While the automakers have stressed that operations and business are proceeding as normal, Nissan has postponed the launch of its high-performance Leaf electric car "to ensure that this important product unveiling could receive the coverage it merits", a Nissan spokesman said.

Shares in Mitsubishi Motors closed up 3.3 per cent ahead of the announcement while Nissan climbed 1.8 per cent, outperforming the broader market's 0.8 per cent gain.

WASHINGTON — When iPhone users want to edit blemishes out of their selfies, identify stars and constellations or simply join the latest video game craze, they turn to Apple Inc.’s App Store, where any software application they buy also includes a 30 per cent cut for Apple. 

That commission is a key issue in a closely watched antitrust case that will reach the US Supreme Court on Monday. The nine justices will hear arguments in Apple’s bid to escape damages in a lawsuit accusing it of breaking federal antitrust laws by monopolising the market for iPhone apps and causing consumers to pay more than they should.

The justices will ultimately decide a broader question: Can consumers even sue for damages in an antitrust case like this one? 

Apple, which is appealing a lower court decision that revived the proposed consumer class-action lawsuit, says no, citing a decades-old Supreme Court precedent. The Cupertino, California-based technology company said that siding with the iPhone users who filed the lawsuit would threaten the burgeoning field of e-commerce, which generates hundreds of billions of dollars annually in US retail sales. 

The plaintiffs, as well as antitrust watchdog groups, said that if the justices close courthouse doors to those who buy consumer products, monopolistic conduct could expand unchecked. 

“A lot of tech platforms will start making the argument that consumers don’t have standing to bring antitrust suits against us,” said Sandeep Vaheesan, legal director for the Open Markets Institute, a Washington-based antitrust advocacy group. 

“Uber could say, we’re just providing communication services to ride-sharing drivers,” Vaheesan said, referring to the popular ride-sharing company. “If there’s an antitrust issue, the drivers can bring a claim but passengers do not have standing.” 

The iPhone users accused Apple of violating federal antitrust law by monopolising the sale of paid apps, leading to inflated prices compared to if apps were available from other sources.

Although developers set the prices of their apps, Apple collects the payments from iPhone users, keeping a 30 per cent commission on each purchase. One area of dispute in the case is whether app developers recoup the cost of that commission by passing it on to consumers. Developers earned more than $26 billion in 2017, a 30 per cent increase over 2016, according to Apple.

The company sought to have the antitrust claims dismissed, saying the plaintiffs lacked the required legal standing to bring the lawsuit. 

Apple has seized upon a 1977 Supreme Court ruling that limited damages for anti-competitive conduct to those directly overcharged instead of indirect victims who paid an overcharge passed on by others. Part of the concern, the court said in that case, was to free judges from having to make complex calculations of damages.

Apple said it is acting only as the agent for app developers who sell the apps to consumers through the App Store. 

The company said allowing the lawsuit to proceed would be dangerous for the e-commerce industry, which increasingly relies on agent-based sales models. Apple cited companies like ticket site StubHub, Amazon’s Marketplace and eBay. 

Lawsuits against companies like these would multiply “and lead to the quagmire this court sought to avoid”, Apple told the justices in a legal brief. 

E-commerce reached $452 billion in US retail sales in 2017, according to US government estimates.

Apple is supported by President Donald Trump’s administration. The plaintiffs are backed by the attorneys general of 30 states including California, Texas, Florida and New York.

The US Chamber of Commerce business group, backing Apple, said in a brief to the justices, “The increased risk and cost of litigation will chill innovation, discourage commerce and hurt developers, retailers and consumers alike.”

The plaintiffs and some anti-monopoly groups disagree. They said that app developers would be unlikely to sue because they would not want to bite the hand that feeds them, leaving no one to challenge anti-competitive conduct. 

Developers “cannot risk the possibility of Apple removing them from the App Store if they bring suit”, the American Antitrust Institute advocacy group said in a brief.

Apple is “trying to make it harder for injured parties to assert their rights under federal antitrust law”, said Mark Rifkin, an attorney for the plaintiffs.

The claims against Apple date to 2011 when several iPhone buyers including lead plaintiff Robert Pepper of Chicago filed a class action lawsuit against Apple in federal court in Oakland, California. A judge initially threw out the suit, ruling that the consumers were not direct purchasers because the higher fees they paid were passed on to them by the developers.

The San Francisco-based 9th US Circuit Court of Appeals last year revived the lawsuit, deciding that Apple was a distributor that sold iPhone apps directly to consumers.

TUNIS — Tunisia's powerful UGTT union called another national strike for January to press its demand for higher wages after the government said on Saturday it would seek a realistic pay deal.

About 650,000 public sector workers went on strike and thousands joined protests across Tunisia on Thursday over the government's refusal to raise wages amid threats from international lenders to stop financing Tunisia's tattered economy.

Raising the pressure on the government the UGTT approved plans for a nationwide strike that include public employees and state companies on January 17.

Prime Minister Youssef Chahed conceded that pay was an issue, but added that any agreement must take into account the public finances.

"There is a real problem in the decline in purchasing power and high inflation and the decline of public services... These will be our priorities in the next period," Chahed told parliament.

The government had said it does not have the money to pay for the increases strikers want, worth about 2 billion Tunisian dinars ($690 million) in total.

Under pressure from the International Monetary Fund and a deepening political crisis, Chahed is battling to cut the budget deficit to about 4.9 per cent of GDP this year and 3.9 per cent in 2019 from 6.2 per cent last year.

His unpopular reforms include cuts to the public sector, state companies and fuel subsidies.

The 2011 uprising was sparked by anger at unemployment and poverty and record levels of inflation. 

The state Institute of Strategic Studies says real purchasing power has fallen by 40 per cent since 2014. 

BEIJING — China rejected fresh US accusations of perpetuating "unfair" trade practices and urged Washington on Thursday to stop making provocations, showing little sign of backing down days ahead a high-stakes meeting between leaders from both countries.

President Xi Jinping is due to hold talks with US President Donald Trump during a G-20 summit in Argentina at the end of the month, with the rest of the world hoping they can find a way to de-escalate a trade war that is threatening the global economy. 

China's commerce ministry said it is deeply concerned by a report issued by the US administration this week, which said China had failed to alter its "unfair" practices. 

"The US side made new groundless accusations against the Chinese side, and China finds it totally unacceptable," Commerce Ministry spokesman Gao Feng told reporters at a news conference in Beijing.

The findings were issued in an update of the US Trade Representative's "Section 301" investigation, which looks into China's intellectual property and technology transfer policies and has sparked US tariffs on $50 billion worth of Chinese goods that later ballooned to $250 billion. 

Gao said the report reflects US unilateralism in violation of World Trade Organisation rules.

"We hope the United States will drop the words and behaviours that damage bilateral economic and trade relations and adopt a constructive attitude," Gao said.

The ministry is also evaluating the potential impact from a separate US proposal this week to increase control over technology exports, and said it would take the necessary steps to uphold Chinese firms' legitimate interests.

Citing security concerns, the US government on Monday proposed stepping up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology, a move that many analysts view as directly targeting China. 

A 30-day public consultation period on the proposal to include those sectors in its broader export control regime is under way and will end on December 19, according to a document published on the US government's Federal Register on Monday.

"We are evaluating the measures that the United States may take," Gao said, stressing that Washington's generalisation of the concept on national security would only result in unnecessary barriers and damage trade.

"China will pay close attention to the relevant US legislation and take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises as appropriate," he said.

Washington is demanding Beijing to improve market access and intellectual property protections for US companies, cut industrial subsidies and slash a $375 billion trade gap. Trump has imposed tariffs on $250 billion of Chinese imports to force concessions.

The US tariff rate on $200 billion in Chinese goods is set to increase to 25 per cent from 10 per cent on January 1. Trump has threatened to impose tariffs on all remaining Chinese imports — about $267 billion more in goods — if Beijing fails to address US demands.

PARIS/TOKYO — France stood by embattled Renault boss Carlos Ghosn on Wednesday, saying it wanted evidence from industry partner Nissan to support misconduct allegations against him, and added that both Paris and Tokyo wanted a stable carmaking alliance.

While Japan took a similar line, saying it was keen for stability in the Nissan-Renault partnership following Ghosn’s arrest, a Nissan executive said the Japanese automaker was seeking ways to weaken the influence of its French partner.

The 19-year alliance, enlarged in 2016 to include Japan’s Mitsubishi Motors, has been rattled to its core by Ghosn’s shock arrest in Japan on Monday, with the 64-year-old group chairman and industry star accused of financial misconduct. 

Ghosn, a Brazilian, Lebanese and French citizen, has personally shaped the alliance and pledged to consolidate it with a deeper tie-up, one not all parties were convinced by. 

“We need to return to the original idea of a win-win relationship,” a long-time Nissan executive told reporters at an organised briefing, speaking on condition of anonymity. It should be “a more equal relationship than before”.

As well as geography and culture, the ties among the companies are complicated by the role of the French state. 

The French government holds 15 per cent of Renault, which in turn owns 43.4 per cent of Nissan. The Japanese company holds a non-voting 15 per cent stake in Renault and a 34 per cent share of Mitsubishi Motors.

The Nissan executive said a reduction of Renault’s stake in Nissan — which recovered from near-bankruptcy after Ghosn took its helm and is now more profitable than its French partner —should be one option under consideration.

In Japan, there is concern that France is ultimately seeking to take control of Nissan and Mitsubishi. In France, there are suspicions that Ghosn may have been targeted so as to hinder French influence. Trust has been undermined on both sides.

“There is a feeling of crisis at the ministry of economy, Trade and Industry that at this rate Nissan and Mitsubishi will be seized by the French government,” said a senior source familiar with Japanese government thinking. 

In Paris, French Finance Minister Bruno Le Maire sought to ease the tensions, saying stability remained critical for both France and Japan. He said he wanted to see the evidence against Ghosn before reaching conclusions, and added that he would meet his Japanese counterpart on Thursday for talks. 

“At this stage, we do not have any evidence to support the accusations against Mr Carlos Ghosn,” Le Maire told reporters. “I would like to emphasise the Renault board’s request that Nissan share all the evidence available to it.”

Nissan has said it will fire Ghosn as chairman on Thursday.

Renault on Tuesday tapped its chief operating officer and a senior board member to fill in for Ghosn, but the board refrained from ousting him while waiting for details on the allegations — a decision that could buy more time for an accelerated, permanent succession process.

Auto tumult

One of the world’s best-known auto industry executives, Ghosn bestrode the alliance, serving also as chief executive of Renault and chairman of Mitsubishi Motors, although he often said that his efforts to drive integration were hampered by the French government’s stake in Renault.

On Monday, Nissan CEO Hiroto Saikawa portrayed Nissan as a victim of Ghosn’s alleged misdeeds. But Nissan itself faces scrutiny over the financial misconduct case, with the Asahi newspaper reporting on Wednesday that prosecutors were weighing bringing a case against the Japanese automaker.

With Ghosn potentially gone from the picture, the future shape of the alliance is the subject of intense investor speculation. Mitsubishi Motors CEO Osamu Masuko said on Tuesday it may be hard to manage without the unifying figure of Ghosn.

On Wednesday, Renault shares rose 1.3 per cent after falling more than 9 per cent this week. Nissan closed up 0.4 per cent after falling nearly 6 per cent a day earlier. Mitsubishi Motors closed down 1 per cent after losing nearly 7 per cent on Tuesday. 

The success of the alliance, which helps the automakers develop products and control costs, is critical for the members at a time when the industry is buffeted by major changes in consumer tastes and rivals are investing billions in new growth areas like automated and internet-connected vehicles.

Given those considerations, the Japanese and French governments have backed the alliance.

It “is a symbol of Franco-Japanese industrial success”, the top Japanese government spokesman said, calling for a “stable relationship” among the three automakers.

Whistleblower 

Nissan said on Monday an internal investigation triggered by a tip-off from a whistleblower had revealed that Ghosn engaged in wrongdoing, including personal use of company money and under-reporting for years how much he was earning.

Ghosn was arrested by Japanese prosecutors who said he and Representative Director Greg Kelly conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10 billion yen ($89 million).

Ghosn and Kelly, who has also been arrested, have not commented on the accusations and Reuters has not been able to reach them. Kyodo News reported on Wednesday that the Tokyo District Court has decided Ghosn and Kelly would be detained for a further 10 days.

Japan’s Nikkei business daily reported on Tuesday that Ghosn had received share price-linked compensation of about 4 billion yen over a five-year period to March 2015, but that it went unreported in Nissan’s financial statements. 

Prosecutors also plan to interview Saikawa on a voluntary basis, NHK reported on Wednesday citing unidentified sources.

Prosecutors were not immediately able to comment. A Nissan spokesman declined to comment.

LONDON — Bitcoin tumbled as much as 10 per cent on Tuesday to below $4,500, bringing the world's best-known cryptocurrency's losses to 30 per cent within a week as a sell-off in digital currencies intensified across the board.

Other cryptocurrencies also skidded sharply, with Ethereum's ether losing 10 per cent and Ripple's XRP down 13 per cent in a largely sentiment-driven slide.

The latest move lower started this month after a period of relative stability, with prices of bitcoin having hovered around the $6,500 mark for several months.

"The euphoria has died and prices have consolidated with lower lows and lower highs. A lot of people have lost interest," said Fawad Razaqzada, an analyst at Forex.com.

Tuesday's falls coincided with broader drops in financial markets. European shares weakened following a big fall on Wall Street. 

As well as a general decline in investor confidence in the value of cryptocurrencies, some traders have also blamed the recent drop on fears that a "hard fork" in bitcoin cash, where the smaller coin that split into two separate currencies, could destabilise others.

Bitcoin was trading on Tuesday at $4,354.20, its lowest level on the Bitstamp exchange since October, 2017.

Bitcoin has now lost about 75 per cent of its value since peaking in December. 

A regulatory clampdown on cryptocurrency trading in early 2018 and a drop in investor interest has sent people scrambling for the exit. 

Cryptocurrency advocates say price volatility is to be expected, and that the need for virtual currencies which operate outside the mainstream banking system will outlast any short-term price falls.

The second and third largest cryptocurrencies, XRP and ether, were trading at $0.4451 and $133 respectively on the Luxembourg-based Bitstamp exchange.

According to industry tracker Coinmarketcap.com, the total market capitalisation of virtual currencies is now below $150 billion, down from around $800 billion in January.

AMMAN — A trade delegation from the Republic of Korea on Monday explored the possibility of increasing business cooperation with their Jordanian counterparts, according to a statement of the Korea Business Centre in Amman.

The delegates, comprising representatives of seven Korean companies, met in Amman with Jordanian businessmen who have an interest in the Korean products and industries, the statement said.

The visiting delegates are manufacturers and exporters of power and electricity products.

Their manufactured and exported products include ignition output voltage devices for power plants, wind power and automation industries couplings, gas leak detectors and smart power pipe management systems, in addition to water treatment equipment.

During the visit, the delegation got acquainted with the Jordanian business environment.

Jordan has a stable business climate and modern legislation that work to stimulate and encourage economic activity, the statement said.  

The meetings are expected to result in trade partnerships and deals that promote economic and investment relations between the Kingdom and the Republic of Korea, according to the statement.

This visit, organised by the Korea Business Centre in Amman, is in line with the distinguished bilateral relations between the two countries. 

The Korea Business Centre, known as Kotra, works to promote trade and investment cooperation between Jordan and the Republic of Korea.