Crunch time for Apple in fight against $15 billion European Union tax order

By Foo Yun Chee and Padraic Halpin

BRUSSELS/DUBLIN (Reuters) - Apple's conflict with EU rivalry controllers reaches a critical stage on Wednesday as Europe's second-most elevated court rules on whether it needs to pay 13 billion euros ($15 billion) in Irish back charges, a key piece of the EU's crackdown against darling assessment bargains.

In its request four years prior, the European Commission said Apple profited by illicit state help by means of two Irish duty decisions that falsely decreased its taxation rate for more than two decades - to as low as 0.005% in 2014.

Destruction for European Competition Commissioner Margrethe Vestager could debilitate or defer pending bodies of evidence against Ikea's and Nike's arrangements with the Netherlands, just as Huhtamaki's concurrence with Luxembourg.

Vestager, who has made the assessment crackdown a highlight of her time in office, saw a similar court a year ago upset her interest for Starbucks to pay as much as 30 million euros in Dutch back charges. For another situation, the court likewise tossed out her decision against a Belgian duty plot for 39 multinationals.

The Apple question is seen by certain experts as a predicament for Ireland, which has advanced against the Commission's structure close by the iPhone creator.

While 14 billion euros - including interest - would go far to stopping the coronavirus-formed opening in the state's accounts, Dublin is trying to ensure a low expense system that has pulled in 250,000 worldwide businesses.

In the event that Ireland's intrigue succeeds, the administration will be scorned by resistance groups for not taking the money, which could cover at any rate half of a spending shortfall estimate to inflatable to as much as 10% of GDP this year.

Should Ireland lose, the administration will be chastised by similar legislators for propelling the intrigue. A decision for the Commission could likewise bring up issues about the utilization of Ireland's expense code at a touchy time, when new worldwide guidelines for burdening advanced monsters are being discussed.

Destruction could likewise hurt Ireland's capacity to draw in venture, despite the fact that the special rush embraced after the Commission's 2016 choice seems to have worked. The numbers utilized by multinationals like Apple, Facebook and Google have developed by 25%, representing one out of ten Irish laborers.

For Apple, destruction would be a blow, yet reasonable given its money possessions beat $190 billion toward the finish of its financial second quarter.

Google users in UK to lose EU data protection due to Brexit: Report

Current Affairs
Google is wanting to move its British clients' records out of the control of European Union security controllers, setting them under U.S. locale rather, sources said.
The move, provoked by Britain's exit from the EU, will leave the touchy individual data of several millions with less assurance and inside simpler reach of British law authorization. The change was portrayed to Reuters by three individuals acquainted with its arrangements. Google plans to require its British clients to recognize new terms of administration including the new ward.
Ireland, where Google and different U.S. tech organizations have their European home office, is remaining in the EU, which has one of the world's most forceful information security runs, the General Data Protection Regulation. Google has chosen to move its British clients out of Irish ward since it is misty whether Britain will adhere to GDPR or embrace different standards that could influence the treatment of client information, the individuals said.
On the off chance that British Google clients have their information kept in Ireland, it would be increasingly hard for British specialists to recuperate it in criminal examinations. The ongoing Cloud Act in the United States, be that as it may, is relied upon to make it simpler for British specialists to get information from U.S. organizations. England and the United States are likewise on track to arrange a more extensive exchange understanding.

Past that, the United States has among the most fragile security assurances of any significant economy, with no expansive law in spite of long stretches of backing by buyer insurance gatherings. A Google representative declined to remark in front of an open declaration...READ MORE

Johnson's 'get Brexit done' worked, but there is a reality check waiting

Election News
Prime Minister Boris Johnson appears set for a sweeping election victory on a promise to "Get Brexit done", but there is a reality check waiting for jaded voters who are feeling relieved that the messy divorce seems to be finally over.
It's just the beginning.
With early vote-counting indicating a handsome Conservative majority, Johnson should be able to finally secure parliamentary approval for the withdrawal agreement he struck with the European Union in October so that Brexit happens on Jan. 31.
Britain will then go into a status-quo transition period until the end of 2020, which Johnson has said leaves ample time to negotiate a new relationship with the EU, including on trade.
But EU diplomats and officials say the following issues will be sticking points which, if not ironed out, could yet take Britain to the cliff edge of a no-deal exit one year from now.
Time
The EU hopes to start trade talks with Britain by March, leaving just 10 months to strike a deal and get it approved by London and the EU, including member states' parliaments.

Trade agreements with the EU typically take years to complete, and few in Brussels believe the transition period will be long enough to seal a deal with Britain.The transition period can be prolonged by one or two years but London must request an extension by the end of June...Read More

WTO rejects EU claims that it no longer provides subsidies to Airbus

International News
PARIS/BRUSSELS (Reuters) - The World Trade Organization on Monday rejected European Union claims that it no longer provides subsidies to planemaker Airbus, underscoring tariffs recently imposed by the United States on European goods.
A new compliance report from the Geneva trade watchdog found that the Airbus A380 and A350 jetliners continue to be subsidised as a result of past European government loans.It is the latest move in a record transatlantic trade dispute involving mutual claims of illegal aircraft subsidies, coming to a head at a time of rising global trade tensions.
The United States was in October awarded the right to impose tariffs on $7.5 billion of annual EU imports in the case against Airbus. It went ahead with partial tariffs on most Airbus jets and products from cheese to olives and single-malt whisky.A decision on retaliation rights for the EU in a parallel case on aid for Boeing is due next year..
In Monday's finding, a three-person panel rejected EU claims that a recent decision by Airbus to stop producing the slow-selling A380 meant the giant airliner could no longer be seen as a threat to Boeing, whose competing 747 is also out of fashion.While the WTO no longer faulted Airbus for causing lost sales to Boeing with the A380, which is no longer marketed, it ruled that the superjumbo would continue to cause market-share damage to Boeing for as long as it is produced and delivered.
Airbus plans to shut production in mid-2021.

The WTO appeared to strengthen findings against the A350, saying it had both cost sales and damaged Boeing's market-share prospects - a process called impedance - in the busier twin-engined long-haul market where Boeing offers its 787 Dreamliner...Read More

Collapse us if you can, British government dares Brexit opponents

Current Affairs

UK Prime Minister Boris Johnson’s government on Thursday challenged opponents of Brexit to collapse the government or change the law if they wanted to thwart Britain's exit from the European Union.
More than three years since the Brexit referendum, the UK is heading towards its gravest constitutional crisis and a showdown with the EU over Brexit due in just 63 days.
In his boldest step since becoming PM, Johnson enraged opponents of a no-deal Brexit by ordering the suspension of Parliament for almost a month.
The speaker of the lower house of Parliament, John Bercow, said that was a constitutional outrage as it limited the time the 800-year-old heart of English democracy has to debate and shape the course of British history.
But Jacob Rees-Mogg, the Brexit supporter in charge of managing government business in Parliament, dared opponents to do their worst. “All these people who are wailing and gnashing of teeth know that there are two ways of doing what they want to do,” he said.
“One, is to change the government and the other is to change the law. If they do either of those that will then have an effect. If they don't have either the courage or the gumption to do either of those, then we will leave on October 31 in accordance with the referendum result.”
Johnson’s move to suspend Parliament for longer than usual was cheered by US President Donald Trump but provoked criticism from some lawmakers and media. “Boris is obviously preparing for an election,” said Conservative lawmaker Ken Clarke.
Ruth Davidson quit as leader of the Conservative Party in Scotland on Thursday, saying she could no longer juggle the demands of being a mother with the balancing act of Brexit...Read More

'I don't know what he will do': Europe braces for Brexit with Boris Johnson

International News

Boris Johnson’s last act as Britain’s foreign secretary was to gather a host of European dignitaries in London and fail to turn up.
As the group of ministers waited in a conference center in London’s docklands last summer, text messages flooded in: Mr. Johnson had just quit the British government in protest over its handling of Brexit. “Well, it’s all rather happening, isn’t it?” said Alan Duncan, a British foreign office minister who was playing host amid the diplomatic mess, according to people present. European officials laughed, and some expressed relief that Mr. Johnson was gone.
Mr. Johnson may now be set to return this week, this time as Britain’s prime minister, and European officials say they don’t know what to expect.
Over the course of his career—including his leadership of the Brexit campaign and his rocky tenure as Britain’s foreign secretary—Mr. Johnson has proved to be unpredictable. He has survived scandals, and against the odds won the race to be mayor of London as well as the referendum to quit the EU. He promotes leaving the world’s biggest trade bloc but also markets himself as pro-globalization and pro-business.
In his two years as foreign secretary, he at times alarmed his European counterparts: He once compared former French President François Hollande to a World War II prison guard and likened the highly technical Brexit talks to trading Legos for candy.

 Other times, he charmed them. His former aides recall being overwhelmed by demands from foreign ministers for bilateral meetings with the man they just called “Boris.” He has delved into deep discussions with officials about ancient Greek history and lobbied hard in Washington to defend the EU’s stance on Iran...Read More

National artificial intelligence unit stuck for lack of anchor department

Current Affairs

The government’s plan to set up a national artificial intelligence centre is stuck because it is unclear which department will spearhead the initiative.
The Ministry of Electronics and Information Technology (MeitY) said in January such a centre would be set up by July.
The then finance minister, Piyush Goyal, announced in February the centre would be developed as a hub along with centres of excellence, for which nine priority areas had been identified. However, he did not mention who would execute the larger plan.
Last month, it was reported that the NITI Aayog had circulated a Cabinet note, asking for Rs 7,500 crore for three years to set up an AI framework. Last year, four panels set up by MeitY evaluated the use of AI for citizens, such as setting up a data platform, skilling and reskilling, research and development, and examining the challenges involving legal, regulatory, ethical and cybersecurity aspects.
“Based on what the four committees gave us, we sent a proposal to implement a national programme at Rs 470-480 crore. For approval it went to expenditure (finance committee), which asked us about the difference between NITI Aayog and our estimate. We have requested them to resolve this,” said a senior official at MeitY.
The NITI Aayog released a discussion paper in June last year on the “National Strategy for Artificial Intelligence”.

 MeitY’s reports have not been made public. A senior finance ministry official who was part of the Expenditure Finance Committee meetings related to the requests made by the NITI Aayog and MeitY on the AI centre said both the departments had been told to get clarity on the matter.

Honda to shut down its only UK car plant in 2022 putting 3,500 jobs at risk

International News:
Japanese carmaker Honda is set to announce the closure of its only British car plant in 2022 with the loss of 3,500 jobs, a lawmaker told Reuters, in the latest blow to the UK car industry as Brexit approaches.

Honda built just over 160,000 vehicles at its Swindon factory in southern England last year, where it makes the Civic and CV-R models, accounting for a little more than 10 percent of Britain's total output of 1.52 million cars.

But it has struggled in Europe in recent years, and the industry faces a number of challenges including declining diesel demand and tougher regulations alongside the uncertainty over Britain's departure from the European Union, due next month.
Justin Tomlinson, a Conservative lawmaker for Swindon who voted for Brexit in 2016, said he had met with the business minister and representatives from Honda who had confirmed the plans.
"They were due to make a statement tomorrow morning, it's obviously broken early," Tomlinson, lawmaker for North Swindon, told Reuters.

"This is not Brexit-related. It is a reflection of the global market. They are seeking to consolidate production in Japan."

Honda said it would not be providing any comment at this stage.
Japan has repeatedly warned it could pull investments in Britain, which it had seen as a gateway into Europe, if London does not secure a Brexit deal favourable for trade.

 The recently agreed EU-Japan trade agreement means tariffs on cars from Japan to the continent will be eliminated, while Britain is struggling to make progress on talks over post-Brexit trade relations with Tokyo...Read More