Delisting Watch: Daimler the Latest to “Go Dark” in U.S.

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Daimler’s delisting is the latest sign of German companies abandoning U.S. capital markets, opting instead to list solely in Frankfurt, re-fortified. The planned delisting and deregistration of Daimler AG is the latest in this months-long trend, propelled by the growth of Frankfurt and its Xetra electronic exchange, despite a weakening euro. It is also residual of Daimler’s bitter end in the Chrysler saga.

The carmaker announced its intention to “go dark” in a letter to the New York Stock Exchange, detailing its plans to delist its shares and to deregister with the SEC. As cited in a statement by Daimler, the primary reason for the planned listing is “a significant change in the behavior of international investors, who now primarily trade in Daimler shares in Germany and through electronic trading platforms.” Of note, however, Daimler, in its recent annual report, reported consistently low trading volumes in the United States, which amounted to well below 5% of the worldwide trading volume.

via Delisting Watch: Daimler the Latest to “Go Dark” in U.S..

E.U. Fines Computer Chip Makers for Price-Fixing | NYTimes.com

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The European Union fined a group of computer chip makers €331.3 million, or $421 million, Wednesday for price-fixing in the first-ever settlement of a cartel case in Europe.

Samsung of South Korea, the market leader, received the highest fine, €145.7 million, and Infineon, based in Germany, was second at €56.7 million.

Those amounts were less than they could have been — by about 20 percent for Samsung and about 50 percent for Infineon — partly because of the settlement and partly because of other leniency arrangements. The new procedure allows for reduced fines in exchange for an agreement under which the companies are expected not to appeal the European Commission’s decision to court.

Micron of the United States, which first reported the cartel to authorities in 2002, escaped a fine.

The E.U. Competition Commissioner Joaquín Almunia said that the new policy was designed to speed up investigations, free up resources to deal with other cases and generally improve the efficiency of its antitrust enforcement.

via E.U. Fines Computer Chip Makers for Price-Fixing – NYTimes.com.

Italy investigates Google’s Street View | Reuters

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Italy has started an investigation into Google Inc’s Street View web service, a local watchdog said on Wednesday following the U.S. group’s announcement it had accidentally collected personal data over wireless networks.

Google said last week its fleets of cars which have been photographing streets around the world had for several years accidentally collected personal information — which a security expert said could include e-mail messages and passwords.

Italy’s privacy regulator said it would verify whether Google treated correctly the data acquired by Street View, which allows users to navigate around a 360-degree view of city streets using pictures taken by Google’s camera vehicles.

The regulator said Google Italy had admitted it collected pictures but also “data regarding the presence of wireless networks … as well as electronic communications, eventually transmitted by users via unprotected wireless networks.”

via Italy investigates Google’s Street View | Reuters.

Whoops! Google says mistakenly got wireless data | Reuters

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Google Inc said its fleet of cars responsible for photographing streets around the world have for several years accidentally collected personal information that consumers send over wireless networks.

The company said on Friday that it is currently in touch with regulators in several countries, including the United States, Germany, France, Brazil and Hong Kong, about how to dispose of the data, which Google said it never used.

“It’s now clear that we have been mistakenly collecting samples of payload data from open (i.e. non-password-protected) WiFi networks,” Google Senior VP of Engineering and Research Alan Eustace said in a post on Google’s official blog on Friday.

Google, the world's largest Internet search engine, did not specify what kind of data it collected, but a security expert said that email content and passwords for many users, as well as general Web surfing activity, could easily have been caught in Google’s dragnet.

“The bottom line is a lot of personal content is definitely available in open WiFi hotspots,” said Steve Gibson, the president of Internet security services firm Gibson Research Corp.

via Whoops! Google says mistakenly got wireless data | Reuters.

Google Opens Up on What Its ‘Street View’ Cars Collect – Digits – WSJ

By now, Google’s cars have driven down roads around the world — and in some places, they’re sparking concerns about just what information they are collecting.

So the Internet-search giant is opening up a bit about the data it compiles. Google is trying to address criticisms that have been leveled against it in European countries in particular and provided details about Street View cars in a post on its European Public Policy Blog on Tuesday. The company said it had discussed the information before but that it wanted to make it more easily accessible.

Privacy officials from 10 countries, including seven in Europe, sent Google a letter earlier this month outlining several concerns. The letter said Google’s Street View service was “launched in some countries without due consideration of privacy and data protection laws and cultural norms” and said “there is continued concern about the adequacy of the information you provide before the images are captured.”

So what does Google get with those cars? As anyone who has used Google Street View knows, cameras on the cars collect photos that are used in Google’s maps, and people who are out and about when the car passes can appear in images. Google reduced the amount of time it retains unblurred images in Europe, bowing to pressure from European privacy authorities. But the company has been urged to cut the time further. Google also allows people to request that images of them be removed, and a Google Germany spokeswoman told Bloomberg in March that the company would announce when it was driving by to take photos in that country.

In addition to photos, the cars gather information about Wi-Fi networks they encounter. This feature isn’t as well known, and it sparked a new round of criticism in Germany last week, with Germany’s federal commissioner for data protection saying he was “horrified” by the discovery. That’s why Google’s recent blog post devotes a considerable amount of time to explaining what Google is doing with Wi-Fi data.

Wi-Fi networks broadcast information such as the name of the network and a number given to the Wi-Fi device. In its post, Google explains that it collects this data to improve location-based services where GPS is slow or unavailable or for devices that aren’t GPS-enabled. Those devices can still triangulate location using transmissions from things like Wi-Fi networks and cellphone towers that Google has identified.

via Google Opens Up on What Its ‘Street View’ Cars Collect – Digits – WSJ.

UK data watchdog to quiz Google on Streetview Wi-Fi database • The Register

Sharp criticism of Google in Germany has today prompted the UK's privacy watchdog to quiz the firm over data its Street View cars have collected about Wi-Fi networks.

Officials from the Information Commissioner’s Office (ICO) will seek details and assurances about the practice.

A spokeswoman told The Register the ICO had been unaware the Street View fleet has been recording the MAC addresses and locations of Wi-Fi networks as they photograph national road netwoks – until its German counterpart launched an attack last week.

Peter Schaar, Germany’s Federal Commissioner for Data Protection, was quoted as saying he was “horrified” by the data gathering exercise and demanding the Wi-Fi database be deleted.

The ICO spokeswoman said British regulators are interested in how the data is being processed and used by Google. If the firm were collecting data on the security settings of Wi-Fi routers, she said, it would be asked to give assurances about what it might do with that information.

“If it’s just to tell you there's a cafe nearby – fine,” she added.

In Germany, concerns have centred on claims that a national database of Wi-Fi MAC addresses or network names could prove a boon to authorities tracking online activity. Similarly, easy look-up of encryption standards on Wi-Fi routers might be useful to investigators, or criminals.

via UK data watchdog to quiz Google on Streetview Wi-Fi database • The Register.

‘They Can Sue You’: Navigating the Foreign e-Discovery Mine Field | Corporate Counsel

Handling electronic discovery in a foreign country means navigating a mine field of competing legal interests, in-house lawyer Alexander Shapiro told a group of in-house and outside counsel last week.

Shapiro, managing director and senior managing counsel at The Bank of New York Mellon Corporation, spoke at the 2010 spring meeting of the American Bar Association Section of International Law in New York. Prior to joining BNY Mellon, he spent 10 years as a government lawyer, including as an assistant U.S. attorney in New York.

“Private communications in the workplace are a fundamental freedom in Europe,” Shapiro warned. “You have a duty of privacy to your customers in the foreign jurisdiction, and to your employees. They can sue you if you violate it. And some of these foreign laws have criminal provisions.”

One unidentified lawyer in the audience pointed out that in Europe both a company’s in-house lawyer and outside counsel can be charged for violating those laws, as well as the corporation itself.

In addition, Shapiro said some countries have a blocking statute that bars a bank from sending documents out of country for a pretrial proceeding.

So what if you have a U.S. judge demanding discovery of bank documents in Germany? “Your job is to navigate the competing pressures,” Shapiro said. He advised talking to all parties and judges involved, and trying to obtain privacy waivers from employees in a form consistent with local law.

via ‘They Can Sue You’: Navigating the Foreign e-Discovery Mine Field.

H-P Executives Are Investigated for Bribery – WSJ.com

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German and Russian authorities are investigating whether Hewlett-Packard Co. executives paid millions of dollars in bribes to win a contract in Russia, according to people familiar with the matter.

German prosecutors are looking into the possibility that H-P executives paid about €8 million ($10.9 million) in bribes to win a €35 million contract under which the U.S. company sold computer gear, through a German subsidiary, to the office of the prosecutor general of the Russian Federation. The office handles criminal prosecutions in Russia, including many corruption cases.

Russian investigators raided H-P’s Moscow offices Wednesday in connection with the probe, the people familiar with the matter said. The search was requested by German authorities, according to a statement posted on the Russian prosecutor’s Web site.

An H-P spokesperson said, “This is an investigation of alleged conduct that occurred almost seven years ago, largely by employees no longer with HP. We are cooperating fully with the German and Russian authorities and will continue to conduct our own internal investigation.”

German prosecutors are looking into whether H-P executives funneled the suspected bribes through a network of shell companies and accounts in places including Britain, Austria, Switzerland, the British Virgin Islands, Belize, New Zealand, the Baltic nations of Latvia and Lithuania, and the states of Delaware and Wyoming, according to investigation-related documents submitted to a German court and reviewed by The Wall Street Journal.

via H-P Executives Are Investigated for Bribery – WSJ.com.

Don’t Tell the Court “Keine Rechtsprechung” | Joshua Gilliland – JDSupra

In Accessdata Corp. v. Alste Techs. Gmbh, 2010 U.S. Dist. LEXIS 4566 (D. Utah Jan. 21, 2010), a United States based company entered into a contract with a German company to sell electronic discovery forensic software in Germany. Litigation followed after the German Defendant failed to pay the Plaintiff for software sales. The Defendant objected to producing electronic discovery of third parties based on German law and the Hague Convention.

via Don’t Tell the Court “Keine Rechtsprechung” | Joshua Gilliland – JDSupra.

Foreign Corrupt Practices Act Cases Rise, Fines Mounting – TIME

Why must Daimler AG, the German automaker, pay big fines to the U.S. government because two of its subsidiaries, one in Germany and the other in Russia, made improper payments to government officials of countries other than the U.S., such as China, Egypt and Serbia?

Welcome to the age of the Foreign Corrupt Practices Act (FCPA), a far-reaching bit of American legislation that cracks down on corporate bribery in all its forms and is rattling the cages of corporate chiefs the world over. The Department of Justice (DOJ) has jurisdiction over all related criminal violations under the act, and the Securities and Exchange Commission (SEC) keeps tabs on the civil violations committed by U.S. companies. What’s more, the law doesn’t just mean the U.S. government is looking for past incidents of corruption; it’s also stirring the pot to see who may be corruptible in the future.

via Foreign Corrupt Practices Act Cases Rise, Fines Mounting – TIME.