Main news from Brussels this week
date: 22/03/2019
Google fined €1.49 billion for abusive practices in online advertising
On 20 March, the European Commission fined Google €1.49 billion for illegal misuse of its dominant position in the market for the brokering of online search adverts. Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites. This is illegal under EU antitrust rules. The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits and to innovate and consumers, the benefits of competition. The fine represents 1.29% of Google's turnover in 2018 and takes account of the duration and gravity of the infringement. In 2018, Commission fined Google €4.34 billion for illegal practices regarding Android mobile devices strengthening the dominance of Google's search engine and in 2017, the Commission fined Google €2.42 billion for abusing its dominance as a search engine by giving an illegal advantage to Google's own comparison shopping service.
Cyclone Idai: €3.5m EU emergency aid for Mozambique, Malawi and Zimbabwe
On 19 March, the Commission announced a €3.5 million emergency aid package in response to the widespread flooding and devastation caused by tropical cyclone Idai that hit Mozambique, Malawi and Zimbabwe last week. The emergency aid will address the pressing humanitarian needs (shelter, hygiene, sanitation and health care) and EU technical experts will be sent to boost local response efforts to reach those in need. The EU's Copernicus satellite system has been activated to identify needs and help the EU's humanitarian partners and the local authorities in their response. The aid package will be distributed on needs: €2 million will be provided in Mozambique, €1 million in Malawi and €0.5 million in Zimbabwe and comes in addition to an initial €250,000 of EU humanitarian assistance.
InvestEU: boosting private and public investment in Europe
The provisional agreement on the creation of the InvestEU – which builds on the success of the Investment Plan for Europe (see Fact of the Week) – is a crucial step towards making EU financing easier to access to boost EU jobs and growth. InvestEU will bring together under one roof the European Fund for Strategic Investments and 13 other EU financial instruments currently supporting investment in the EU. InvestEU will be the Commission's flagship programme using public funding to support strategically important projects across the EU to help build a more sustainable, resilient and competitive European economy. It will further boost investment in key areas like artificial intelligence, circular economy, climate action, as well as social inclusion and skills.
Capital Markets Union: stronger, safer and more integrated financial markets
On 21 March the Commission welcomed the political agreement reached by MEPs and EU government ministers on the core elements towards reforming European supervision in EU financial markets, including anti-money laundering. This is an important step to achieve not only a Single Rulebook, but also a consistent supervisory approach across the EU. The European Supervisory Authorities play a key role in achieving convergence of supervisory outcomes to ensure a level playing field for financial institutions and investors in the EU and ensuring investor and consumer protection. This is a precondition for a fully-fledged Capital Markets Union. The new rules will also confer new powers to the European Banking Authority to ensure there is no weak link in the EU when it comes to money laundering supervision and terrorist financing.
rescEU: stronger, pan-European civil protection system enters into force
On 21 March, the EU's plan to strengthen the existing civil protection mechanism response to natural disasters, rescEU, entered into force. Numerous disasters have affected all regions of Europe in recent years causing hundreds of casualties and billions in damage to infrastructure. New capacities (ie so-called rescEU reserve) include forest fighting planes, special water pumps, urban search and rescue as well as field hospitals and emergency medical teams.
€525 million for Eurodrone and other joint defence research and industrial projects
On 19 March, the Commission adopted work programmes to co-finance joint defence industrial projects worth up to €500 million in 2019-2020. A further €25 million has been earmarked to support collaborative defence research projects in 2019. The announcements kick-start the first EU-funded joint defence industrial projects under the European Defence Industrial Development Programme (EDIDP) which will focus on such areas as: drone technology, satellite communication, early warning systems, artificial intelligence, cyber-defence and maritime surveillance. From 2021, a fully-fledged European Defence Fund will foster an innovative and competitive defence industrial base and contribute to the EU's strategic autonomy.
€2 billion to fast forward the creation of the European Innovation Council
Ahead of the 21-22 March European Council discussion on innovation, industry and competitiveness, the Commission announced this week a €2bn injection to set up a European Innovation Council (EIC) to help turn Europe's scientific discoveries into businesses that scale up faster. The Commission also announced that 68 start-ups and SMEs have been selected for €120 million of EU funding under the existing EIC pilot, including two UK businesses: Smart Separations Ltd(link is external) and ViVo Smart Medical Devices Ltd(link is external) (details here). Overall, 1,276 highly innovative projects have already benefitted from over €730 million of EU funding since the EIC's pilot was launched in 2017. A further €10bn will be allocated under Horizon Europe, the EU research and innovation funding programme for 2021-2027, with the EIC becoming a full-fledged reality from 2021.
€27 million in humanitarian assistance for Afghanistan
On 20 March, the European Commission announced €27 million in humanitarian assistance for the most vulnerable families affected by the devastating floods in early March which continue to affect large parts of the country. The new funding will provide food, emergency shelter, water and sanitation, protection and medical care. The EU will also continue to provide education for children who have had to leave their schools.
All this week's key European Commission announcements can be found here