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11.07.19 8 FOREIGN NEWS THE EU's top anti-trust regulator on Wednesday fined Hello Kitty owner Sanrio €6.2 million euros for illegally blocking retailers from selling mer- chandise across bloc borders. "Consumers, whether they are buying a Hello Kitty mug or a Chococat toy, can now take full advantage of one of the main benefits of the EU's single market: the ability to shop around Europe for the best deals," said Competition Com- missioner Margrethe Vestager. e relatively low fine came as a re- sult of Sanrio's cooperation in the case, which was jointly launched against Nike and Universal Studio. In March, the commission fined Nike €12.5 million, with no decision yet tak- en against Universal. e case is part of the EU's ambition to build a digital single market across the union of 28 countries and 500 million people, which as a bloc is the world's biggest economy. e commission is especially keen to fight companies that break EU compe- tition rules by restricting a manufactur- er's or retailer's ability to sell licensed merchandise cross-border and online. "One of the cornerstones of the Eu- ropean Union is the free movement of goods within the Single Market, some- thing Hello Kitty were found to have been actively working against," said Fionn Uíbh Eachach, Indirect Tax Part- ner with BDO. "e fine levied today, and a simi- lar fine levied on Nike back in March, sends a strong signal to other business- es operating in the EU that consumers must be afforded the right of competi- tion in terms of choice and price – one of the principal underpinnings of the EU Single Market." Hello Kitty, Japan's moon-faced icon of cute, has spawned a multi-billion-dollar industry since Sanrio introduced her in 1974. e mouthless character, with her child-like hair bow and a registered height of five apples, is now found in 130 countries on more than 50,000 branded products every year, according to Sanrio. EU fines Hello Kitty €6.2m for competition breach Hello Kitty has spawned a multi-billion-dollar industry since her introduction in 1974 AIRBUS is on track to overtake Boeing in commercial plane deliveries for 2019 after outpacing its US rival at mid-year following the 737 MAX grounding, new data show. Boeing, which has halted deliveries of the top-selling plane since mid-March, reported 239 commercial plane deliver- ies in 2019 through the year's midpoint, down 37% from the same time a year ago. Airbus reported 389 deliveries for the same period, up 28% from the same peri- od in 2018, according to data on its web- site. If the numbers hold throughout the year, Airbus could replace Boeing as the world's largest aircraft maker. Boeing's big decline in deliveries con- firms the extent to which the 737 MAX crisis has dented its standing following two recent crashes that killed 346 people. Boeing in June again reported no new orders for the 737 MAX. Plane deliveries are tied to company revenues and closely monitored by Wall Street. Leading analysts have slashed their profit forecasts for Boeing due to the 737 MAX crisis, which has halted deliveries and forced the company to store planes after they are manufactured. At the Paris Air Show in June, Boeing announced that it signed a letter of intent to sell 200 737 MAX planes to British Air- ways parent International Airlines Group. But the IAG order has not been officially booked yet. On Monday, Saudi budget carrier Fly- adeal said it withdrew a provisional order for up to 50 Boeing's grounded 737 MAX jets and would instead buy up to 50 Air- bus planes. Morningstar analyst Danny Goode said he does not expect other carriers to follow flyadeal as long as Boeing is able to ensure reentry of the 737 MAX by the end of the year. "While Flyadeal's withdrawal is a bit concerning, we would seriously revisit our delivery forecast if a flagship cus- tomer like Southwest or Ryanair flipped to Airbus' A320neo or A220 platform," Goode said in a note. "We remain confident in the 737 MAX's return to service," he added. Boeing has developed a software up- grade to the 737 MAX after problems with a flight handling system were tied to Lion Air and Ethiopian Airlines crashes. But the jet has still not been cleared by regulators to resume work. e US Federal Aviation Administration last week identified a fresh problem dur- ing simulator testing, further clouding the outlook for the plane's return to service. 737 MAX crisis leads to Airbus edging Boeing in deliveries

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