GE BE­ING PROBED FOR MIS­LEAD­ING EU

Reg­u­la­tors say firm was not truth­ful when seek­ing merger

New Straits Times - - Business -

BRUS­SELS Mar­grethe Vestager sig­nalled a zero tol­er­ance ap­proach to com­pa­nies that give in­ac­cu­rate in­for­ma­tion when she fined Face­book €110 mil­lion on May 18 for com­bin­ing What­sApp data with its other ser­vices af­ter hav­ing told the merger of­fi­cials oth­er­wise dur­ing the EU’s 2014 re­view.

On March 20, the EU ap­proved GE’s ac­qui­si­tion of Den­mark­based LM Wind Power un­con­di­tion­ally af­ter of­fi­cials found no com­pe­ti­tion con­cerns.

But while GE told the com­mis­sion dur­ing the re­view that it was not plan­ning to ex­pand into nextgen­er­a­tion off­shore wind tur­bines with a ca­pac­ity of 12 megawatts, EU reg­u­la­tors sub­se­quently said they found ev­i­dence to the con­trary.

The pun­ish­ment for break­ing the EU’s rules is as high as one per cent of their an­nual sales. Bloomberg

BLOOMBERG PIC

At the cen­tre of the dis­pute is LM Wind Power, which GE bought over for €1.5 bil­lion, while promis­ing it would not de­velop new giant off­shore wind tur­bines.

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