Tagged: Google

Many giants will face a fine of 10% of annual revenue

Bloomberg: Many giants will face a fine of 10% of annual revenue

It is reported that according to a new draft regulation to be submitted by the European Union on Tuesday, it is required that “digital gatekeepers” must comply with the new regulations on data use, otherwise they will be fined 10% of their annual income.

The new regulations will prohibit companies from using their own advantages to engage in unfair competition. This new draft is aimed at those gatekeeper companies, including Apple, Amazon and Google.

If the company has three or more fines within five years, it will be regarded as a systematic violation and may be required to make changes in behavior and structure.

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Wall Street Journal丨Financial Times: Adidas will sell Reebok

Adidas Group announced on Monday or will sell the Reebok business in its strategic plan to be released on March 10 next year.

As the world’s second largest sports brand, Adidas bought Reebok at a price of about 3 billion euros in 2006 to challenge Nike in the United States, Nike’s home stadium.

However, Reebok’s performance has not been able to meet expectations, and it is even far worse than the performance of Adi’s own business in the United States.

Therefore, Adi’s shareholders eventually lost confidence in Reebok’s business. After the announcement, Adidas’ stock price rose 1.8%.

 

Wall Street Journal: Google server crashed 3 times in 4 months

On Monday morning, Google’s server crashed again, and more than a dozen services including Gmail, YouTube, etc. were interrupted. This is the third global service shutdown for Google in the past four months.

The service interruption occurred once in August and September this year, and then again in March.

Because of the epidemic, remote work and learning have become dominant, and this interruption coincides with Monday morning, which undoubtedly has a huge impact on thousands of people.

The affected software service was restored in the next 30 minutes or so, and Google did not respond to the reason for the service interruption.

 

Nikkei Asian Review: Toshiba and Fuji Electric invest US$2 billion to produce chips for electric vehicles

To meet the trend towards electrification of automobiles, Toshiba and Fuji Electric will jointly invest US$2 billion to increase the production capacity of power-saving chips.

Toshiba is strong in power-saving technology for low-voltage products below 300 volts. After the production capacity of its plant in Ishikawa Prefecture is increased, it will produce 150,000 chips a month to supply domestic and Chinese car companies.

Fuji Electric will also increase the production capacity of its Yamanashi factory by 30%, and it is expected that by 2023, electric vehicle chips will account for half of its power chips.

 

Financial Times: LG’s divestiture of subsidiary business is opposed by US shareholders

In November this year, LG announced that it would spin off its five subsidiaries into a newly established investment company. The resolution was opposed by Whitebox Advisors, a US minority shareholder hedge fund that owns 1% of LG Group.

The fund said that the newly established investment company was founded and led by the uncle of the current LG chairman Koo Kwangmo’s Gu Benjun. The price of divesting these subsidiaries is seriously lower than the true value of these companies.

In South Korean consortia, there has always been a tradition of spinning off company business to family members at low prices. Samsung divested its retail business to the founder’s daughter, and Hyundai divested its car and shipbuilding business to the founder’s son.

Because of this, the current overall market value of LG Group is only 69% of the cumulative market value of its subsidiaries.

 

Nikkei Asian Review: The epidemic makes it difficult for Indonesia to escape the middle-income trap

Indonesia originally planned to become the world’s top five economies and enter the ranks of high-income countries by 2045. However, this epidemic has made it difficult for Indonesia to escape the middle-income trap.

According to Indonesian official data, as of August this year, 2.67 million people were unemployed due to the epidemic, and the unemployment rate rose to 7.07% from 5.23% a year ago.

Another 24 million people were forced to cut wages and cut working hours. Since Indonesia was hit by the Asian financial crisis in 1997, the economy has slowly been widened by China. Last year, it was barely included by the World Bank as a post-middle-income country with an annual per capita income of US$4,050.

 

Reuters: Aliceca’s share price dives

On Monday, Aliceca’s stock price fell as much as 9% because Aliceca announced last week that it would acquire the rare disease drug manufacturer Alexion for $39 billion.

According to the merger agreement, nearly two-thirds of the 39 billion U.S. dollars will come from Alicecom’s stock.

As of Monday morning, Aliceca’s market value had evaporated by $9.4 billion, indicating that investors are not satisfied with the announcement of the merger.

And Alexion’s stock price soared to more than $163 per share, indicating that investors believe that the transaction will eventually succeed.

Nikkei Asian Review: The Philippines will enable digital banking

Reuters: Britain will implement a New Deal to contain Google and Facebook

It is reported that the United Kingdom will implement a new competition mechanism next year to prevent Google and Facebook from using their advantages to compete unfairly.

The regulation will be implemented by the Digital Market Department of the Competition Regulatory Agency (CMA), which will begin work in April next year. It has the power to suspend, block and overturn the decisions of technology companies and impose fines on violations.

In addition, the regulation will provide support to the journalism industry and rebalance the relationship between publishers and platforms.

Currently, the CMA is evaluating whether the complaint about Google is worthy of a formal investigation.

Wall Street Journal: Disney lays off another 32,000 employees

It is reported that due to the impact of the new crown epidemic, Disney plans to lay off 32,000 employees again, this time layoffs mainly involve Disneyland.

In addition, the company also said that it is considering other measures to deal with the new crown epidemic, such as reducing or not paying certain payments, reducing investment in movies and TV content, and implementing vacation measures.

Although the new crown has dealt a heavy blow to Disney’s businesses such as parks and movies, the company’s direct-to-consumer business has become a bright spot.

The company plans to launch an international streaming service platform under the Star brand outside the United States in 2021.

Disney lays off another 32,000 employees

Nikkei Asian Review: The Philippines will enable digital banking

The Central Bank of the Philippines said on Thursday that to further expand digital financial services, it will allow the establishment of digital banks. Digital banks are banks without physical branches.

According to the draft, the minimum capital requirement of a digital bank is 20 million U.S. dollars, which can provide more innovative services than traditional banks, but it must be based in the Philippines and cannot establish physical branches.

The Governor of BSP stated that they are accepting applications for new licenses, hoping to expand the digitization of transactions in the Philippines by introducing digital banks, but will control the number of digital banks based on actual conditions.

Digital bank