Business

BRUSSELS — An EU court on Wednesday scrapped a 1.49-billion euro ($1.65 billion) fine imposed by Brussels against Google for an abuse of dominance over online advertising.

"The General Court annuls the [European] Commission's decision in its entirety," the Luxembourg-based court said in a statement, adding that the "institution committed errors in its assessment".

Brussels "failed to take into consideration all the relevant circumstances in its assessment of the duration of the contract clauses that the commission had deemed abusive", the court said.

The commission, the EU's influential competition regulator, said it "takes note" and would "carefully study the judgment and reflect on possible next steps" — which could include an appeal.

The ruling will be a relief for Google after the EU's highest court last week upheld a 2017 fine worth 2.42 billion euros for abusing its dominance by favouring its own comparison shopping service.

As part of a major push to target big tech abuses, the EU slapped Google with fines worth a total of 8.2 billion euros between 2017 and 2019 over antitrust violations.

The 1.49-billion euro fine is the third of those penalties, focused on Google's AdSense service.

But the long-running legal battles between Google and the EU do not end there.

EU's greater powers 

Google is also challenging a 4.3-billion-euro penalty Brussels levied on it for putting restrictions on Android smartphones to boost its internet search business.

The 2018 fine remains the EU's largest-ever antitrust penalty.

The General Court in 2022 slightly reduced the fine to 4.1 billion euros, but mainly supported the commission's argument that Google had imposed illegal restrictions.

The legal saga continues in that case after Google appealed the latest decision before the higher European Court of Justice.

The EU has since armed itself with a more powerful legal weapon known as the Digital Markets Act (DMA), to rein in tech giants including Google.

Rather than regulators discovering egregious antitrust violations after probes lasting many years, the DMA gives businesses a list of what they can and cannot do online.

The aim is that tech titans change their ways before the need for deterrent fines.

Google is already the subject of one investigation under the DMA alongside Facebook owner Meta and Apple.

Google is in the US regulators' crosshairs as well.

Last week, the tech titan faced its second major antitrust trial in less than a year with the US government accusing Google of a monopoly in ad technology — the complex system determining which online ads people see and their cost.

It comes after a US judge in August found Google's search business to be an illegal monopoly, a ruling which threatens a possible break-up for the tech behemoth.

Ad tech is at the centre of multiple probes by regulators around the world.

British regulators earlier this month said in provisional findings that Google abused its dominance in the market.

The EU similarly concluded last year that Google is distorting competition in the market and recommended that the company be forced to divest its ad tech business.

Google has the right to respond in the British and EU cases before the regulators reach final conclusions.

Parent company Alphabet in July said revenue from online ad searches climbed to $48.5 billion in the second quarter of this year.

FRANKFURT, Germany — Chancellor Olaf Scholz voiced disappointment Tuesday after US semiconductor giant Intel delayed plans to build a mega chip-making plant in Germany which had been championed by Berlin.

The news also stoked fresh tensions in Scholz's uneasy ruling coalition, with a row breaking out over what should be done with around 10 billion euros ($11 billion) in subsidies earmarked for the project.

The government "takes note of the announcement about the delay with disappointment and continues to believe the project is worthwhile and deserves support", said Scholz.

The chancellor welcomed the fact that Intel had indicated it wants to "stick with" the project in the long term.

Intel announced Monday that it was postponing the project in the eastern German city of Magdeburg, along with another one in Poland, by around two years due to lower expected demand.

The chip-making giant announced plans for the German plant in 2022, in what was seen as a major boost for EU efforts to ramp up semiconductor production in the bloc.

Construction work on the Intel project was due to begin in 2023 but it stalled after the Ukraine war sent inflation soaring.

German officials and the company were then locked in talks on financing for months, but the two sides finally signed a deal in June 2023, which included higher government subsidies for the 30-billion-euro project.

Since, Intel has reported disappointing results and announced major job cuts as it faces fierce competition, particularly from Nvidia, in the race to make cutting-edge chips for artificial intelligence.

Despite the setback for Germany, Scholz stressed there were still over 30 semiconductor projects underway in Germany. Other chip giants, including Taiwan's TSMC, have announced major investments in Germany.

"For the sake of our sovereignty, and for our technological leadership, we will continue to insist that semiconductor production takes place in Europe and especially in Germany," he said during a visit to Kazakh capital Astana.

He refused to be drawn on what should be done with the public funds that had been set aside for the Intel plant.

But shortly after Intel's announcement, Finance Minister Christian Linder from the pro-business FDP party said the money should be used to plug holes in the budget.

"Anything else would not be responsible policy," he wrote on X.

But sources from the economy ministry, which is headed by the Green party, the third member of the coalition led by Social Democrat Scholz, said the money should remain in a special "climate and transformation fund", and could not be used in the main budget.

FRANKFURT, Germany — UniCredit CEO Andrea Orcel openly acknowledged Monday that he was in favour of a merger with Commerzbank, days after the Italian lender unexpectedly acquired a nine - per cent stake in Germany's second-biggest bank.

"It has been no secret for many years that we see potential in a merger," Orcel said in an interview with financial daily Handelsblatt.

"For the moment, we are only a shareholder. But a merger of the two banks could lead to considerable added value for all stakeholders," Orcel said.

UniCredit caught markets by surprise last week when it disclosed it had built up a nine – per cent stake in Commerzbank, half of which it acquired from the German state.

UniCredit paid around 1.4 billion euros ($1.5 billion) for the acquisition.

The announcement renewed speculation that the Milan-based bank was mulling a takeover of Commerzbank. UniCredit already owns German lender HypoVereinsbank.

"Europe, and Germany too, needs stronger banks. Banks are needed to finance growth and the enormous transformation that lies ahead," Orcel told Handelsblatt.

A tie-up between UniCredit and Commerzbank would "create a much stronger competitor in the German banking market", he said.

"Retail banking customers could be better supported, and the German Mittelstand (small- and medium-sized companies) could be strengthened with financing and more comprehensively supported internationally."

The German government is still Commerzbank's largest shareholder, with a remaining 12 - per cent stake. It recently said it aimed to sell down its stake, citing the bank's improved economic situation.

Berlin had bailed out Commerzbank with billions of euros in 2009 after the global financial crisis pushed it to the brink of collapse.

Commerzbank has bounced back strongly since then, posting its best annual net profit for 15 years in 2023. It is aiming for even better results in 2024 despite expectations of lower interest rates.

German opposition politicians and the Verdi labour union have in recent days voiced strong objections to a potential takeover by UniCredit.

Asked about the next steps, Orcel said: "When the time is right, we will engage in a constructive dialogue."

If both sides "come to the conclusion that a merger is the best thing for both of us, that would be great".

There was no immediate comment from Commerzbank.

FRANKFURT, Germany — Troubled German rail operator Deutsche Bahn announced recently the sale of its logistics unit Schenker to Danish group DSV for 14.3 billion euros ($15.8 billion) to create a freight-forwarding giant.

The state-owned German group, which has faced mounting criticism due to creaking infrastructure and poor punctuality, said the deal would provide fresh investments into Europe's biggest economy and help pay down its monster debts.

"With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders," DSV Chief Executive Jens Lund said in a statement.

The new entity will aim to compete with other heavyweights in the sector, like DHL, UPS and Fedex.

DSV, founded in 1976, said the deal was its biggest transaction to date.

The combined companies will have 147,000 employees in more than 90 countries and generate revenue of 39.3 billion euros. The transaction is expected to close in 2025.

Despite fears about job cuts following the sale, DSV insisted Germany will remain a "key market" for the company and it will retain Schenker's offices in Essen, western Germany.

Deutsche Bahn launched the sale of Schenker, its most profitable subsidiary, at the end of 2023, seeking funds to pay down a 30 billion-euro debt and plough desperately needed investments into Germany's creaking rail infrastructure.

Deutsche Bahn CEO Richard Lutz said that the sale was the largest transaction in the operator's history and "provides our logistics subsidiary with clear growth prospects".

The Danish group plans to invest 1 billion euros in Germany over the next three to five years, Deutsche Bahn said.

The German rail group said the sale will enable it to focus on its top priority — improving rail infrastructure and operations, which are also seen as key to helping Germany reach climate goals.

Deutsche Bahn, once a symbol of German efficiency, has been blighted by problems in recent years, with critics blaming chronic underinvestment.

Breakdowns and delayed arrivals are now commonplace on the German railways. Last year 36 per cent of long-distance trains arrived six minutes or more past their scheduled arrival time, well above the European average.

The problems on the network were on display when Germany hosted the Euro 2024 football tournament in June and July, with fans complaining frequently about problems on the network.

Its net losses soared 16-fold year-on-year in the first half of 2024, with the operator blaming extreme weather, strikes and upgrades to its network.

By reducing its vast debts, the sale of Schenker "will make a substantial contribution to the group's financial sustainability", Deutsche Bahn chief Lutz said.

The sale of Schenker has left its employees in Germany fearing for their jobs, with staff protesting against the move outside the subsidiary's office this week.

DSV has promised to maintain, and even increase, staffing numbers in Germany in the long-term but there concerns are about an initial phase of cuts.

The Handelsblatt financial daily reported that DSV initially wants to cut about 1,600 to 1,900 jobs at Schenker in Essen and Frankfurt, up to 15 per cent of the unit's staff in Germany.

AMMAN — The Jordan Chamber of Industry said that the industry index, recorded a growth of 1 per cent during the second quarter of this year compared to the same period last year, the Jordan News Agency, Petra, reported on Saturday.

More than 62 per cent of industrial companies and businessmen expressed optimism and positive expectations for performance during the coming period of this year, According to a statement by the chamber,  

The President of the Jordan Chambers of Industry Fathi Jaghbeer pointed out that the growth was achieved despite the consequences of the Israeli aggression on the Gaza Strip and the developments of events in the region and their impact on industrial exports and supply chains, the decline in price levels and fluctuations globally, and the decline in demand for various sectors.

He pointed out that five industrial sectors achieved growth within the index of the second quarter of this year compared to the same period last year, led by the food and catering industries, livestock, chemical, cosmetics, leather, knitting, plastic, rubber, therapeutic and medical supplies.

While Jaghbeer pointed to the decline in other industrial sectors, which are packaging, engineering, mining, wood, furniture and construction.

AMMAN — The real estate market in Jordan recorded a total trading volume of approximately JD4.447 billion from January 2024 until the end of August, with a transaction volume of JD710 million in August, the Jordan News Agency 
(Petra) reported on Thursday.

According to the monthly report from the Department of Land and Survey, real estate revenue decreased by 5 per cent compared to the same period in 2023, totaling around JD167 million. The report noted a 2 per cent drop in apartment sales and a 7 per cent decline in land sales compared to the same period in 2023.

On a monthly basis, real estate revenue for August saw a 6 per cent decrease compared to the same month in 2023, amounting to approximately JD25 million.

SHANGHAI — Spain's Prime Minister Pedro Sanchez said on Wednesday the European Union should "reconsider" a plan to impose tariffs of up to 36 per cent on Chinese electric cars, calling for a "compromise" between the economic powerhouses.

The European Commission, which oversees the bloc's trade policy, announced last month that it planned to levy five-year import duties of up to 36 per cent on electric vehicles imported from China.

The following day, Beijing said it would launch a probe into EU subsidies of some dairy products exported to China.

"I have to be blunt and frank with you that we need to reconsider all of us, not only member states but also the Commission, our position towards this," Sanchez told journalists after being asked about the tariffs at a news conference near Shanghai.

"As I said before, we don't need another war, in this case a trade war," he added.

"I think that we need to build bridges between the European Union and China and from Spain.

"What we'll do is to be constructive, and to try to find a solution, a compromise between China and the European Commission."

Sanchez's visit has seen him meet top officials including President Xi Jinping and call for "dialogue and cooperation" with the world's second largest economy.

The trip comes against the backdrop of mounting trade tensions between the European Union and China, primarily over Beijing's subsidies for its electric vehicles sector.

In June, China launched an anti-dumping investigation into pork imports from the bloc in response to an application submitted by a local trade grouping on behalf of domestic producers.

The Iberian nation is the European Union's largest exporter of pork products to China, selling more than 560,000 tonnes last year totalling 1.2 billion euros ($1.3 billion), according to industry body Interporc.

'Fair trade'

On Monday, Sanchez called for Madrid and Beijing to defend what he called a "fair trade order".

"We must work together to resolve differences through negotiation, in a spirit of dialogue and collaboration, and within multilateral frameworks," he wrote on social media after meeting Xi.

China and the European Union have butted heads in recent years on a range of issues relating to trade, technology and national security.

Brussels has launched a raft of probes targeting Chinese subsidies for solar panels, wind turbines and trains.

But it faces a delicate balancing act as it tries to defend Europe's crucial auto industry and pivot towards green growth while also averting a showdown with Beijing.

On Wednesday, the president of an EU business lobby in Beijing said overcapacity of Chinese electric vehicles was among the top concerns facing European firms in the country.

The risks of doing business in China are "mounting and the rewards [are] seemingly decreasing", the EU Chamber of Commerce said in a position paper on Wednesday.

"Many investors are now confronted with the reality that the problems they are facing in the China market may be permanent features," said the chamber, which drew on the views of the more than 1,700 EU firms operating in the country.

"A substantial strategic rethink" may now be required, it warned.

A European Commission official has said the EU executive remained "open" to resolving the trade dispute without resorting to tariffs — but that "it's very much up to China to come up with alternatives".

Beijing has so far filed an appeal against the measures with the World Trade Organisation (WHO) — which Brussels has acknowledged while voicing confidence the tariffs are WTO-compatible.

SHANGHAI — Spanish Prime Minister Pedro Sanchez called for "a negotiated solution" at the World Trade Organisation (WTO) to end a stand-off between Beijing and the European Union.

Sanchez's visit to China has seen him meet top officials including President Xi Jinping and call for "dialogue and cooperation" with the world's second largest economy.

The trip comes against the backdrop of mounting trade tensions between the European Union and China, primarily over Beijing's subsidies for its electric vehicles sector.

Speaking at the inauguration of the Spain-China Business Forum in economic powerhouse city Shanghai, Sanchez called for "a European Union and a China open to the world, beyond geopolitical and economic tensions".

"That's why we are betting on honest dialogue to solve existing tensions, that result in large part from the imposition of tariffs on Chinese electric vehicles," he added.

"And what do we propose from Spain? A solution negotiated and agreed in the WTO framework, that contributes to developing balanced and fair and avoids commercial escalation that benefits no-one," Sanchez said.

The European Commission, which oversees the bloc's trade policy, announced last month that it planned to impose five-year import duties of up to 36 per cent on electric vehicles imported from China.

In China's capital Monday, Sanchez called for Madrid and Beijing to defend what he called a "fair trade order".

"We must work together to resolve differences through negotiation, in a spirit of dialogue and collaboration, and within multilateral frameworks," he wrote on social media after meeting President Xi.