Daily briefing: EU hits Google, Queen gets a raise, India’s taxation gamble

Sign up to receive FirstFT by email here

The EU has hit Google with a €2.4bn antitrust fine for abusing its dominance in search, a decision with potentially far-reaching implications for both the tech sector and already strained transatlantic relations. The fine is the biggest ever for such an antitrust case. It comes after a seven-year investigation led the European Commission to conclude that the tech group abused its online search to “give illegal advantage” to its own shopping service. The company has 90 days to change its behaviour or face a further penalty. In a statement, Google said it disagreed with the findings.

The fine comes a day after Brussels warned the US that it would retaliate against any quotas or tariffs on European steel. Cecilia Malmström, EU trade commissioner, urged the Trump administration not to proceed with a generalised tariff on steel imports, warning that Europe was ready to retaliate. US president Donald Trump, who has threatened to crackdown on imports on national security grounds, has yet to respond. Here is a profile of Margrethe Vestager, the EU’s doughty competition commissioner who, according to Bloomberg, makes “corporate America tremble”. (FT, Politico, NYT, Businessweek)

In the news

The Queen gets a raise
Britain’s Queen Elizabeth is to receive an 8 per cent boost to her income after her property portfolio reported record annual profits. The Crown Estate, which manages a £12.4bn property portfolio on behalf of the monarchy, reported an 8.1 per cent rise in net income to £328.8m for the year to March. (FT)

Eurozone recovery
Mario Draghi, president of the European Central Bank, says he is confident of the eurozone’s recovery. His bullish assessment will probably fuel speculation that monetary stimulus could be withdrawn. The euro climbed 0.7 per cent against the dollar — the highest since June 2014 — as he spoke. (FT)

Trump warns on Syria
The White House issued a late-night warning to Syria after claiming “potential evidence” the country was preparing for another chemical weapons attack. The US warned Syrian leader Bashar al-Assad would pay a “heavy price”. The warning came after Donald Trump met Indian prime minister Narendra Modi, with the leaders of the world’s largest democracies greeting each other with bear hugs before discussions focused on security co-operation. (FT, NAR)

Kinnevik refocuses on tech
A rare interview with the Swedish company’s main shareholder Cristina Stenbeck shows how Kinnevik has potentially become the foremost non-venture capital technology investor in Europe. (FT)

Brazil’s president indicted
President Michel Temer has been indicted for corruption, marking the first time since the return of democracy in the 1980s that a leader of Latin America’s largest country has faced criminal charges. (FT)

The day ahead

Yellen in London
US Federal Reserve chair Janet Yellen will make an appearance at a UK forum to evaluate the global economy. Analysts are hoping for a signal on any retreat on the central bank’s interest rate strategy. (MarketWatch)

‘Summer Davos’
Business leaders, academics and politicians have gathered in the Chinese port of Dalian for the first day of the World Economic Forum’s annual June meeting. Li Keqiang, China’s premier, spoke at the opening ceremony. (CNBC)

Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.

What we’re reading

Narendra Modi’s great tax gamble
An overhaul of India’s taxation system, which comes into effect on Saturday, aims to turn the country into a single market — what does it mean for the rising Asian economy? (FT)

Why Italy’s €17bn bank rescue deal is making waves
A handy explainer that covers, among other things, why critics say the use of state funds to deal with failing Veneto banks undermines EU rules. (FT)

Fleeing Chechnya’s LGBT purge
The leader of Chechnya, Ramzan Kadyrov, has declared that gay Chechens do not exist. This account of LGBT people who survived detention and torture and are now living undercover in Putin’s Russia shows otherwise. (New Yorker)

Counterproductive counterterrorism
In the wake of the terror attack at an Ariana Grande concert in the British city of Manchester, Muslims are asking why they were not told that suicide bomber Salman Abedi had been reported to the authorities as a potential jihadi. Muslim leaders and experts say that counter terrorism needs to move beyond mosques and encompass the wider community. (Politico)

Snailed it!
A new study suggests scientists have uncovered a way to delete memories from snails’ brains — a discovery that could be used to treat post-traumatic stress disorder in humans. (Medical Daily)

Video of the day

Harry Potter’s spell on wallets
It’s 20 years since the first book in the Harry Potter series was published. Emma Jacobs tells the story of how Harry Potter charmed fans — and their wallets. (FT)