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Intel appeals record-setting $1.45 billion antitrust fine... from 2009
It's been more than three years since being slapped with a record-setting €1.06 billion (roughly $1.45 billion) antitrust fine by the EU, and Intel is finally getting around to putting an appeal in motion. The request for a reversal is going to the second highest court in the union, the General Court in Luxembourg, where Intel's lawyers plan to argue that the evidence used to convict the company was "profoundly inadequate." The Commission that levied the fine was also criticized the European Ombudsman for failures in record keeping and procedure during the original investigation. However, the prosecution is sticking steadfast to its argument that rebates handed out by Chipzilla were clearly a clever ploy to hide its anti-competitive practices. Should the hearing not go Intel's way, there is one last stop on its journey -- the EU's Court of Justice. A loss there would require the rather sizable fine be paid.
Apple faces potential suspension of sales in Italy
Apple is in hot water in Italy over its warranty policy, which does not comply with Italian law. Apple products come with a free one-year warranty that can be extended with the purchase of an AppleCare warranty. Under Italian law, the company is obligated to provide two years of free warranty service. The country's AGCM competition and market authority has warned Apple about its non-compliance and fined the company 900,000 Euros for pushing its paid service and failing to disclose the free technical assistance. Apple appealed the fine, but lost in court earlier this year, says Reuters. Despite the ruling and the fine, Apple has not changed its policy. As a result, the AGCM has threatened to close Apple's operations in the country for 30 days and levy another fine (300,000 Euros). Apple has 30 days to respond.
Apple to pay A$2.25 million fine in Australia for iPad 4G name
Apple may have to pay a stiff penalty in Australia over the use of "4G" in the new iPad's model name. According to a Wall Street Journal report, Apple has agreed to pay a A$2.25 million (US$2.2 million) fine to settle a legal battle it has been fighting with the Australian Competition and Consumer Commission. Apple will also pay the ACCC costs of A$300,000 (US$295,000). Though Apple has said it will pay a fine, the court must still approve the settlement terms before Apple can put this issue behind them. As a result of this case and other similar ones in the UK and Sweden, Apple changed the model name of the mobile networking-capable iPad from " WiFi + 4G" to "WiFi + Cellular."
EU competition head gives Google a 'matter of weeks' to offer an antitrust fix
The European Union has been taking a leisurely pace investigating Google over possible antitrust abuses, but it's now accelerating to a full-on sprint. European Commission competition head Joaquin Almunia has given Google just a "matter of weeks" to propose how it would patch things up and soften fears that it was unfairly pushing its own web services over others. If Google makes the Commission happy, Almunia says, the whole investigation might wrap up and avoid fines. Google hasn't responded yet, but we wouldn't guarantee that it makes a deal: its execs have usually argued that there's nothing keeping users from going to another search site, and the company has been eager to emphasize that competition still exists. That said, Google only has to see what happened to Microsoft to know how expensive an EU antitrust fight can be.
Samsung, LG and Pantech, among others, fined $40 million in Korean price fixing scam
The truth in advertising is that there is none -- it's mostly all smoke and mirrors. But sometimes those illusory promises have real-world criminal intent behind them, like this latest ruling from the Korean government's corporate regulator. In a decision handed down earlier today, that governing body found mobile phone makers LG, Samsung and Pantech, in addition to operators KT, SK Telecom and LG Upius guilty of price fixing. In what's been framed as a case of consumer fraud, the OEMs reportedly inflated the associated costs of handsets, which were then marketed with supposed discounts by the colluding carriers. Collectively the group's been ordered to pony up about 45.3 billion won (or $40.2 million) in fines, with the largest of those penalties belonging to Samsung at 14.2 billion won (about $12.6 million) and SK Telecom at 20.2 billion won (about $18 million). Adding further insult to this public injury is the FTC, which has taken the extra step of imposing sales restrictions that are intended to prevent the involved parties from committing future infractions. Check out the source below for the full scoop on this corporate back-scratching.
French court fines Google France 500,000 euros for gratis Maps
A Parisian commercial court has upheld a lower court's ruling against Google France, ordering the company to pay a fine of €500,000 for giving away its maps services. The plaintiff, Bottin Cartographes, claims that Google leveraged the market share of its Maps platform -- and the fact that it's free -- to undercut and stifle competition attempting to sell their topographical wares to businesses. "We proved the illegality of [Google's] strategy," said Bottin's counsel, noting that this was the first time Google has been convicted of malfeasance for this particular piece of software in the country. A representative from the search giant said it plans to appeal the decision, and reiterated the company's belief that competition exists in the space. Personally, we think the court got it right. Why should people get an awesome product for free when they can pay for an inferior one, right?
Nokia penalised for texting tips to Aussie users, regrets not adding unsubscribe option
Here's a bit of bad news for those who actually enjoy receiving Nokia's regular tips via SMS: Reuters reports that the Australian Communications and Media Authority has slapped the Finnish company a hefty A$55,000 ($58,000) fine, with the reason being that there was no way to unsubscribe from said messages. This kind of flaw sure is a surprise at this day and age, but Nokia's already taken action by simply axing this spammy service entirely in Australia, while at the same time "ramping it down elsewhere" just to be safe, according to Reuters. If Pope Benedict is still going about his texting business over there, we sure hope he won't be next on the Aussie naughty list. [Image credit: Ester Inbar]
Korean regulator fines Apple $2,800 over iPhone location tracking controversy
The iPhone location tracking saga took yet another twist today, with South Korea's communications regulatory body ordering Apple Korea to pay three million won (about $2,828) for collecting personal information without authorization. The fine certainly won't break Cupertino's bank, but it does set a precedent, marking the first time that a regulator has taken Apple to task over the issue. A few weeks ago, a Korean court ordered the company to pay about $1,000 in compensation to an individual who brought action against Apple, as part of a case that is expected to blossom into a larger, class-action suit. Kim Hyung-suk, the lawyer spearheading the campaign, told Reuters that he's looking to file the lawsuit "by next week." Apple's Korean unit, meanwhile, is still claiming innocence, with spokesman Steve Park saying: "Apple is not tracking the location of your iPhone. Apple has never done so and has no plans to ever do so." Park, however, would not say whether the company will agree to pay the fine.
Google's potential $500M fine linked to illegal online pharmaceuticals
When Google revealed it would take $500 million first-quarter charge ahead of "potential resolution of an investigation" by the United States Department of Justice, the company offered few details. A three-line non-explanation pointed the finger at "advertising by certain advertisers." Now The Wall Street Journal reports that the mysterious half-billion-dollar hit may stem from advertisements placed by "rogue online pharmacies" that break US laws. The DOJ investigation has focused on whether the search behemoth knowingly accepted ads from shady pharma sites, but it's unclear whether those sites sold counterfeit or expired drugs, failed to require doctor's prescriptions, or both. Obviously, if the company profited from illegal activity, it can be held liable -- a fact Google knows all too well after a 2007 settlement over ads for online gambling. The impending fine would rank among the highest paid to the US government; this news, by the way, did not come from Facebook.
Sony may be hit with £500K fine over PSN data loss
The UK's Information Commissioner's Office (ICO), a non-departmental public body, has contacted Sony to determine where PlayStation Network data is stored -- not in an effort to locate the hackers who reportedly grabbed it, but to determine whether any of it is being stored in the UK. If PSN user data is stored in the UK, then it is subject to the Data Protection Act, which requires companies that hold personal data to provide adequate security for it. Notably, the law would trump Sony's PSN Terms and Conditions, which includes the line: "We exclude all liability for loss of data or unauthorised access to your data, Sony Online Network account or Sony Online Network wallet and for damage caused to your software or hardware as a result of using or accessing Sony Online Network." "If we found a breach," an ICO rep told Edge, "one of the actions we could take would be to issue an undertaking, which is an agreement between the ICO and the company that if they are handling personal information they have to bring about set improvements in order for them to be compliant with the act." If the company fails to comply, the rep added, "further action would be taken, and we might consider an enforcement notice or issue a monetary penalty." For a serious breach, the fine can reach £500,000 (more than $800,000). Admittedly, that wouldn't be a huge payout for Sony, but considering the other costs of the security breach and PSN outage the company stands to incur, it would probably sting a little.
France fines Google €100,000 for Street View privacy violations, then mulls striking for no apparent reason
Ah, France. Land of beautiful beaches, a respectable railway system, and more unexplained delays and work stoppages than anywhere else in the developed world. Oh, and a primary airport that forces you to use "tickets" to buy food from certain vendors and refuses to complete a CDG -> JFK flight on schedule. Gripes aside, it seems that at least one thing is getting done today over in The country of the Human Rights, with France's data protection regulator confirming a record €100,000 fine sent over to Google in relation to improper data collection during its Street View sweeps. Granted, El Le Goog has run into privacy issues before on this very matter, but none quite as ginormous as these. The National Commission for Computing and Civil Liberties claims that the company's infractions include "collecting passwords and email transferred wirelessly," and its highest ever fined has been levied due to the "economic advantages Google gained from these violations." We're told that the company has two months to appeal the penalty, but as of now, it seems as if Google's frightened to make any comment at all in English. Thank heavens for Translate, right?
IBM settles with SEC, pays $10 million for accusations of bribery
Hey, look, it's a major international corporation getting in trouble for bribery, and it isn't Samsung! This time it's home grown Big Blue, choosing to settle with SEC over allegations that its employees have spent the last 15 years or so illegally bribing and wooing foreign officials to score themselves bigger contracts. This includes $207,000 in cash bribes paid to South Korean representatives between 1998 and 2003 plus more in the form of gifts and trips to those willing and able to sign over big contracts, even paying for the personal vacations of Chinese officials. Ultimately $10 million is little more than a slap on the wrist for a company the size of IBM, which has not admitted fault and now will never have to, but we were glad to see that Watson has not been implicated in any of these nefarious misdeeds. His record remains squeaky clean.
Cleveland approves $2.5 million for RFID recycling bins (update)
When it comes to trash can technology, there's little doubt the United Kingdom is on top, what with the bomb-proof and RFID-laden bins denizens have been subjected to for years. Still, the US has trialed traceable cans for some time now, and the city of Cleveland, Ohio's just decided to make them stick, shelling out $2.5 million last week for 150,000 households worth of electronically-accountable recycling. Unlike prior garbage tracing schemes, however, citizens won't be charged according to the raw weight of undesirables in their can, but rather tested to make sure at least 10 percent of the recycling bin's contents are actually recyclable -- else face a $100 fine. That may sound a little pricey, but let's face facts: if 91 percent of what you toss in your recycling bin is garbage, you're not exactly helping the planet. they aren't throwing recycling in the trash bin instead. If over 10% of a resident's trash is actually recyclable, they're slapped with a $100 fine, a costly reminder to take better care of the planet next time. Update: We read it wrong; it's actually your trash can that's measured for recyclables. That makes much more sense! [Thanks, Adam Z.]
Dell settles with SEC for $100 million, moseys off into sunset
Looks like Dell might finally be at peace with the US Securities and Exchange Commission -- for now at least. The company has announced that it's reached a settlement for "alleged omissions prior to Fiscal 2008" regarding both its relation with Intel and some accounting this-and-that. In a nutshell, Dell was receiving payments from Intel (who had some nasty payouts of its own) to not use AMD chips, which the company didn't disclose to investors, and then failed to explain why profitability dropped once the payments stopped coming in. Remember that $100 million set aside in June for such a civil monetary penalty? Yep, this is exactly what it was for, and it's exactly what Dell is paying out. Additionally, CEO Michael Dell is paying $4 million out of pocket. Lesson learned, right guys?
R4 card provider ordered to pay Nintendo over $500,000 in damages
It may only amount to a drop in Nintendo's pockets, but an Australian provider of R4 cards used to copy Nintendo DS games has now been ordered to pay Nintendo $620,000 Australian dollars (or about $556,822 US dollars) in damages, and destroy all its remaining stock for good measure. While that company, GadgetGear, doesn't seem to be commenting on the matter itself, Nintendo says that GadgetGear has "now acknowledged that game copying devices infringe both Nintendo's copyright and Nintendo's trademarks and that they are illegal circumvention devices," adding that "GadgetGear and the directors have agreed to permanently refrain from importing, offering for sale and/or selling game copier devices." Of course, it is just one provider of R4 cards that's affected by the case, but Nintendo is no doubt hoping that the hefty fine will be enough to at least act as a deterrent to others.
Australian NSMB Wii pirate to gamers: 'Don't do what I did'
"For James Burt, it's game over." Faced with paying a $1.5 million ($1.3 million USD) fine to Nintendo -- along with additional court costs -- the 24-year-old Australian man who illegally uploaded New Super Mario Bros. Wii to the internet now has to endure the trite (see: "game over" line) and unsympathetic reporting of a local TV show called "A Current Affair." Here's question one: "You do admit that what you did was quite stupid?" BAM. Nintendo Australia's Rose Lappin claims the pirated plumber code was downloaded approximately 50,000 times after Burt bought a copy from a retailer that failed to adhere to the street date. "It's no different to stealing anything else," she concluded, reflecting Nintendo's unflinching legal stance in the matter. As for Burt's considerable debt, he said, "It's something I'm going to have to work through for the rest of my life." It's a clear example and a harsh punishment -- especially when so many pirates escape without repercussion -- that Burt has warned his fellow gamers against. Seriously, guys, do not duplicate that disc. [Via GamePolitics]
DOT bars bus drivers and commercial truckers from texting while driving
It's coming. And soon. Of course, you know darn well we're referring to the day where no human in any nation can text and drive legally, and we're seeing the US Department of Transportation get us one step closer with its latest mandate. Effective immediately, bus drivers and interstate commercial truckers are disallowed from texting while operating a motor vehicle, and should they choose to send that one last SMS anyway, they'll be hit with "civil or criminal fines of up to $2,750." Needless to say, the Advocates for Highway Safety are pretty stoked about the notion, but they confess that this isn't taking things far enough. And for anyone who has been sideswiped by someone special telling someone more special "I LUVRZ U XOXO LOL" while doing 80 on the I-15, well, they'd probably concur.
Google imposes $350 early termination fee for subsidized Nexus One in addition to carrier's own ETF
Here's another reason to consider going the unlocked route with the Nexus One, in addition to having the AT&T (non-3G) and international GSM option. As a number of people have noticed, Google's got its own Early Termination Fee (ETF) equivalent, here called the Equipment Recovery Fee, in the terms of sale, to the tune of $350 if you cancel within the first 120 days. Sound familiar? It's because we saw it in a leak just before the new year. Here's the kicker, though: this is in addition to any fees imposed by the carrier -- not necessarily a problem on its own, but we just glanced at T-Mobile's terms of sale, and sure enough, there's an associated ETF up to $200. If we're reading this right, Nexus One owners who decide to end their service after the 14-day trial period is over but before four months have passed will be hit with upwards of $550 in fees -- more than if you bought the phone outright from the start, especially when you factor in the upfront $180. There hasn't been enough time for someone to tempt fate, but who knows -- come January 20th when early adopters' trial period ends, there might be some interesting stories abound.
EU closes antitrust investigation into Qualcomm, doesn't levy fines
Qualcomm has spent an awful lot of time over the past few years dealing with lawsuits and nastygrams, but it looks as if things will be totally different in the new decade. Just months after Qualcomm and Broadcom settled their differences, the European Commission has agreed to drop a four-year antitrust investigation without levying the first fine or absolving the company. The reason? The entity stated that "companies that objected to Qualcomm's pricing for its technology have all withdrawn their complaints or are planning to withdraw them." Sounds like a reasonable reason to let bygones be bygones, no?
Dell finally fined $4 million in NY fraud case
Remember back in May 2008 when Dell was found guilty of "engaging in deceptive business practices related to financing promotions for its computers and technical support?" Yeah, those were the days, and now just 15 and a half months after the verdict, the computer maker is now paying up to the tune of $4 million -- not as paltry as its $30,000 Taiwan fine, but still less than one percent of its quarterly profits. We know, it's the thought the counts.
