Regulators Take Aim at Phone Operators

U.S. regulators have launched an investigation into the country’s mobile phone industry surrounding competition between the big four wireless network operators: AT&T, Verizon Wireless, Sprint Nextel, and Deutsche Telekom’s T-Mobile USA. Consumer advocates and smaller rivals have complained the consolidation of the U.S. industry earlier in this decade reduced competition and put too much power in the hands of the largest national operators.

There are several issues on the table. The Federal Communications Commission will judge whether large companies like AT&T and Verizon Wireless stopped competition by charging high fees for connecting smaller rivals’ calls over their networks and for using lines that carry data for wireless internet services.

Source: Financial Times

Dell Beats Estimates for Q2 Results

U.S. tech giant Dell reported a better-than-expected quarterly profit on Aug. 28 in a sign it was able to cut costs and protect its products’ margins. Yet, the company still posted a 23% yearly fall in net profit to $472 million, compared to $616 million over the same period last year.

Source: Reuters

Facebook Changes Privacy Controls

Social networking Web Site Facebook will alter its privacy controls in response to an investigation by Canadian officials. The changes, which will apply world-wide, include new notifications about privacy and technical changes designed to give people more control over the kind of information they provide to third-party applications, such as games and quizzes.

Source: Wall Street Journal

Italian Antitrust Authorities Investigate Google

Italian competition authorities on Aug. 28 announced they were investigating Internet search giant Google after publishers complained the company was abusing its dominant position to deny them a fair share of online advertising revenue. The Italian Federation of Newspaper Publishers informed antitrust authorities about a “lack of transparency” in Google’s search engine and Google News service.

Source: New York Times

Nokia Takes Aim at Apple

Nokia is reminding the world that it, not a certain Cupertino (Calif.) rival, is the world’s dominant handset maker. In the space of four days, the Finnish company, which accounts for 37% of global mobile-phone sales, announced plans for a netbook computer, unveiled a new bargain-priced touchscreen handset, and a high-end “Internet Tablet.” The moves come in response to Apple’s growing market share in high-end smartphones.

Source: BusinessWeek

SEC in Hot Water over Merrill Bonuses

The U.S. Securities and Exchange Commission — Wall Street’s top cop — has found itself in an uncomfortable spot: arguing that its role at the heart of its investigation involving Merrill Lynch bonuses wasn’t that bad. The agency has back-tracked from allegations after a federal judge refused to approve a $33 million settlement between the SEC and Bank of America over charges that the firm illegally hid plans from investors to pay billions of dollars in bonuses.

Source: Washington Post

Japan Still in Economic Rut Ahead of Elections

Japan’s consumer prices fell at a faster-than-expected pace in July and unemployment rose sharply, according to data released on Aug. 29. The bad economic news comes days before the world’s second-largest economy prepares to vote in nationwide elections. The jobless rate jumped to 5.7% in July from 5.4% a month earlier as businesses cut workforce and new graduates joined the labor market.

Source: Financial Times

Toyota Shuts U.S. Plant, First Closure in 72-Years

Japanese automaker Toyota will shut an assembly plant for the first time in its 72-year history after the failure of a joint venture with General Motors. New United Motor Manufacturing in California will stop production of Corolla cars and Tacoma pickups in March 2010, according to Toyota. In June, GM said it would end assembly of Pontiac Vibes at the plant and quit the venture as part of its bankruptcy reorganization.

Source: Bloomberg

China’s Tengzhong May Seal Hummer Deal by Next Week

China’s Tengzhong Heavy Industrial Machinery could finalize a deal with General Motors as early as next week to acquire the U.S. automaker’s Hummer brand, according to a source familiar with the deal. The agreement would mark the first major Chinese acquisition of a distressed U.S. auto asset.

Source: Reuters

Harley-Davidson Sets Sights on India

Harley-Davidson — the maker of iconic motorcycles — is ready to ride India’s rugged roads. The small, but fast-growing luxury market in India could help Harley-Davidson offset tough times in the U.S.. Shrinking demand for its expensive motorcycles, and troubles at its financing arm, pushed its second-quarter profit down 91%.

Source: Wall Street Journal

Carrefour Posts First-Half Loss

Carrefour – Europe’s largest retailer — recorded a first-half loss on Aug. 29 after writing down the value of assets in Italy and lowering French food prices to keep cash-strapped shoppers from defecting to rivals. The Paris-based retailer announced a $83.4 million in the six months through June 30, compared to a $1.1 billion profit a year earlier over the same period.

Source: Bloomberg