EU says its Google case not affected by U.S. ruling

BRUSSELS (Reuters) - A decision by U.S. regulators to end a probe into whether Google Inc hurt rivals by manipulating internet searches will not affect the European Union's examination of the company.

"We have taken note of the FTC (Federal Trade Commission) decision, but we don't see that it has any direct implications for our investigation, for our discussions with Google, which are ongoing," said Michael Jennings, a spokesman for the European Commission, the EU executive.

U.S. regulators on Thursday ended their investigation into the giant internet company, which runs the world's most popular search engine.

Other internet companies, such as Microsoft Corp, had complained about Google tweaking its search results to give prominence to its own products. But the FTC said there was not enough evidence to pursue a big search-bias case.

The European Commission has for the past two years been investigating complaints against Google, including claims that it unfairly favored its own services in its search results.

Google presented informal settlement proposals to the Commission in July. On December 18 the Commission gave the company a month to come up with detailed proposals to resolve the investigation.

If it fails to address the complaints and is found guilty, Google could eventually be fined up to 10 percent of its revenue - a fine of up to $4 billion.

(Reporting By Ethan Bilby; Editing by Sebastian Moffett and David Goodman)

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Chiefs, GM Pioli part ways after 4 seasons in KC

KANSAS CITY, Mo. (AP) — Scott Pioli is out as general manager of the Kansas City Chiefs, who have been negotiating the past two days with Andy Reid to become their next coach.

Pioli and the team "mutually parted ways," the Chiefs said in a statement Friday. The decision came after four tumultuous seasons marked by poor draft choices, ineffective free-agent moves, failed coaching hires and a growing fan rebellion.

"I truly apologize for not getting the job done," Pioli said.

The Chiefs fired coach Romeo Crennel on Monday after finishing 2-14, matching the worst record in their 53-year history. Chiefs chairman Clark Hunt said other changes could be made, and indicated that Pioli's future could be determined by their next coach.

A person familiar with the situation told The Associated Press the team is nearing a deal with Reid, who was fired after 14 seasons with the Philadelphia Eagles. The person spoke to AP on condition of anonymity because negotiations were ongoing. It is believed that Reid would prefer to work with his own general manager.

"After several productive conversations, we made the difficult decision to part ways with Scott Pioli and allow him to pursue other opportunities," Hunt said in a statement Friday.

"This was a difficult decision for Scott as well," Hunt said. "He has a great deal of appreciation for the history of this franchise, for our players, coaches and employees, and especially our great fans."

Kansas City will have the No. 1 pick in the NFL draft, and with five players voted to the Pro Bowl, there are certainly pieces in place for the Chiefs to make rapid improvement.

But most of those Pro Bowl players were drafted by Pioli's predecessor, Carl Peterson. The former Patriots executive struggled to find impact talent, particularly at quarterback, while cycling through coaches and fostering a climate of dread within the entire organization.

Numerous longtime staff members were fired upon Pioli's arrival, and his inability to connect with fans resulted in unrest unlike anything the franchise has known. Some of them even paid for banners to be towed behind planes before home games asking that he be fired.

Those fans finally got their wish.

The biggest reason ultimately wasn't the banners and posters, but by the performance of the Chiefs. And that was a reflection of the roster Pioli assembled, one that looked good on paper but not on the field.

Things were no better away from the field, either.

On Dec. 1, linebacker Jovan Belcher shot the mother of his 3-month-old daughter, Kasandra Perkins, at a home not far from Arrowhead Stadium. He then drove to the team's practice facility and was confronted by Pioli, Crennel and defensive coordinator Gary Gibbs.

After thanking the three of them for giving him a chance in the NFL, Belcher turned around in the parking lot, kneeled down and shot himself in the head.

Pioli hasn't spoken publicly since then but issued a statement Friday in which he thanked the organization for giving him an opportunity to be its GM.

"The bottom line is that I did not accomplish all of what I set out to do," Pioli said. "To the Hunt family — to the great fans of the Kansas City Chiefs — to the players, all employees and alumni, I truly apologize for not getting the job done."

Pioli often spoke of putting together "the right 53," but he routinely failed to do so.

His biggest move upon being hired was trading for Patriots backup Matt Cassel and then giving him a $63 million, six-year deal. Cassel went to the Pro Bowl in 2010, when the Chiefs won a surprising AFC West title, but he struggled so mightily that he was benched this season.

Many of Pioli's moves in free agency also backfired.

Tight end Kevin Boss sustained a season-ending head injury in Week 2, running back Peyton Hillis was a shadow of his former self, right tackle Eric Winston got into a messy situation by calling out Chiefs fans during an early season loss, and cornerback Stanford Routt was cut under mysterious circumstances despite signing an $18 million, three-year contract.

One of his biggest shortcomings was in the draft.

He wasted the third overall pick in 2009 on defensive end Tyson Jackson, who has struggled to become an every-down player. The only other player who has made a contribution from Pioli's first draft has been kicker Ryan Succop, their seventh-round selection.

Pioli fared better in 2010, when he nabbed Pro Bowl safety Eric Berry in the first round, but the past two years have been a disappointment. Wide receiver Jon Baldwin, his first-round pick in 2011, has barely made an impact, and defensive tackle Dontari Poe — the 11th overall pick last April — failed to make the kind of impression the Chiefs had hoped.

Pioli didn't fare much better when it came to coaches.

He fired Herm Edwards soon after he was hired and chose Todd Haley as the replacement, but their relationship was strained from the start. Haley was fired last December and Crennel made the interim coach, and then Pioli made the move permanent a few weeks after the season ended.

While beloved and respected by his players, Crennel struggled in his second stint as a head coach, and was dismissed after a 2-14 finish — only the third time in team history the Chiefs failed to win at least three games in a season.

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Actor Dempsey: Coffee chain bid appears successful

SEATTLE (AP) — Actor Patrick Dempsey said it appears his bid to buy a small coffee chain has prevailed in a bankruptcy auction that included Starbucks Corp.

Late Thursday night, Dempsey announced that his company, Global Baristas LLC, made the winning bid for Tully’s Coffee. He noted in a KOMO-TV interview that a bankruptcy judge will have the final say on Jan. 11. Still, Dempsey tweeted “We got it! Thank you Seattle!”

Dempsey’s company will pay $ 9,150,000 for Tully’s and complete the purchase later this month after the court hearing, he said in a statement.

“I’m thrilled that we won and I’m even more excited about saving Tully’s Coffee and its hundreds of jobs,” he said. “Tully’s is a great company with committed employees, and with its base in Seattle, one of the world’s greatest cities, I’m confident we will be able to successfully build the brand and help grow the economy. “

Tully’s Coffee has 47 company-owned locations in Washington and California. The company, with more than 500 employees, filed for Chapter 11 bankruptcy protection in October.

Dempsey, who gained the nickname “McDreamy” on the TV show “Grey’s Anatomy” set in a fictional Seattle hospital, has said he wants to rescue the chain.

“Seattle has been very good to me over my career, and I am honored to have the privilege to own Tully’s and work closely with the company’s employees,” he said in his statement.

After Thursday’s auction, Starbucks spokesman Zack Hutson confirmed his company participated and “is currently in a back-up position” for some of Tully’s assets. The final certification of the winning bid won’t occur until the Jan. 11 bankruptcy court hearing, Hutson said.

“We have to wait until next week to make sure everything — I believe the 11th — to make sure it’s all finalized,” Dempsey told KOMO-TV.

The Starbucks spokesman said his company made an offer for 13 of Tully’s company-owned stores in the Puget Sound region plus 12 outlets at Boeing Co. sites. Hutson said another bidder made an offer for all other assets — and is in a back-up position for those.

Also in the running was Baristas Coffee, which operates a chain of drive-thru espresso stands featuring female employees in skimpy outfits.

Both Starbucks and Tully’s are based in Seattle.

The auction process was not public.

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FDA proposes sweeping new food safety rules

WASHINGTON (AP) — The Food and Drug Administration on Friday proposed the most sweeping food safety rules in decades, requiring farmers and food companies to be more vigilant in the wake of deadly outbreaks in peanuts, cantaloupe and leafy greens.

The long-overdue regulations are aimed at reducing the estimated 3,000 deaths a year from foodborne illness. Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the Centers for Disease Control. The actual number of those sickened is likely much higher.

The FDA's proposed rules would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.

Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in some of the large-scale outbreaks that have hit the country in recent years.

In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at the Colorado farm where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout a New Mexico peanut processing plant and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.

Under the new rules, companies would have to lay out plans for preventing those sorts of problems and how they would correct them.

"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.

The new rules come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.

In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are often eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.

None of the proposed regulations would take effect until after a 120-day comment period. The FDA also is giving the farmers ample time beyond that to comply. Larger farms wouldn't be regulated for more than two years; smaller farms would have even more time.

The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.

Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.

"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.

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'Lincoln,' 'Argo' earn Writers Guild nominations

LOS ANGELES (AP) — "Lincoln" and "Zero Dark Thirty" are adding to their front-runner status for Hollywood's awards season.

The two dramas earned nominations from the Writers Guild on Friday for outstanding screen writing.

"Lincoln" is up for adapted screenplay, along with "Argo," ''Silver Linings Playbook," ''Life of Pi" and "The Perks of Being a Wallflower."

"Zero Dark Thirty" was nominated for original screenplay, along with "Flight," ''Looper," ''The Master" and "Moonrise Kingdom."

In the documentary category, "The Central Park Five," ''The Invisible War," ''Mea Maxima Culpa, "West of Memphis," ''We Are Legion: The Story of the Hacktivists," and "Searching for Sugar Man" earned nominations.

Winners will be announced during simultaneous ceremonies in New York and Los Angeles on Feb. 17.

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Online:

www.wga.org

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U.S. unemployment holds at 7.8%

CBS News business and economics correspondent Rebecca Jarvis talks to Norah O'Donnell and Anthony Mason about the final jobs report of 2012 to be released later today.

The pace of hiring by U.S. employers eased slightly in December, pointing to a lackluster pace of economic growth that was unable to make further inroads in the country's still high unemployment rate.

Payrolls outside the farming sector grew 155,000 last month, the Labor Department said on Friday. That was in line with analysts' expectations and slightly below the level for November.

Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to health care.

That should reinforce expectations that the economy will grow about 2 percent this year, unlikely to quickly bring down the unemployment rate or make the U.S. Federal Reserve rethink its easy-money policies, which have been propping up the recovery.

"It's not a booming economy, but it is growing," Jim O'Sullivan, an economist at High Frequency Economics in Valhalla, New York, said before the data was released.

The jobless rate held steady at 7.8 percent in December, down nearly a percentage point from a year earlier but still well above the average rate over the last 60 years of about 6 percent.

The Labor Department raised its estimate for the unemployment rate in November by a tenth of a point to 7.8 percent, citing a slight change in the labor market's seasonal swings.

Most economists expect the U.S. economy will be held back by tax hikes this year as well as by weak spending by households and businesses, which are still trying to reduce their debt burdens.

Friday's data nonetheless gave signals of growing momentum in the labor market's recovery from the 2007-09 recession. Many economists had expected December's payroll gains to be padded by one-time factors like the recovery from a mammoth storm that hit the East Coast in late October.

The government had said last month the storm had no substantial impact on the November data, and many economists expected the government to recant by revising downward in Friday's report its estimate for payroll gains in November. Instead, the government revised its estimate for November payrolls upward by 15,000.

"There is some evidence that underlying jobs growth has improved," Paul Dales, an economist at Capital Economics in London, said before the report was released.

AUSTERITY'S BITE

Despite the signs of some momentum in hiring, a wave of government spending cuts due to begin around March loom over the economy.

Many economic forecasts assume the cuts - which would hit the military, education and other areas - will ultimately be pushed into next year as part of a deal sought by lawmakers to reduce gradually the government's debt burden.

Initially, the cuts were planned to have begun this month as part of a $600 billion austerity package that also included tax hikes. Hiring in December may have been slowed by uncertainty over the timing of the austerity, economists say.

Congress this week passed legislation to avoid most of the tax hikes and postpone the spending cuts.

Even with the last-minute deal to avoid much of the "fiscal cliff," most workers will see their take-home pay reduced this month as a two-year cut in payroll taxes expires.

That leaves the Fed's efforts to lower borrowing costs as the main program for stimulating the economy.

The Fed has kept interest rates near zero since 2008, and in September promised open-ended bond purchases to support lending further. On Thursday, however, minutes from the Fed's December policy review pointed to rising concerns over how the asset purchases will affect financial markets.

Analysts ahead of the report expected some of the strength in job creation in December would be due to the Fed's policies.

"Despite the end-of-year angst over the ‘fiscal cliff,' financial conditions remained supportive of job growth in December," economists at Nomura said in a note to clients earlier in the week.
 

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Feds drop escape charge in downtown prison break

In a surprise move, federal prosecutors today dropped an escape charge against Joseph Jose Banks, a convicted bank robber who made a daring escape from a high-rise South Loop jail by rappelling down some 15 stories with a rope fashioned from bed sheets only to be captured three days later on the North Side.

When he made the bold break for freedom from the Metropolitan Correctional Center, Banks, 37, already faced up to 80 years in prison for his conviction the previous week for holding up two banks and trying to rob two others.

To try to obtain the stiffest sentence possible for Banks, prosecutors can use the escape as aggravation at his sentencing for the bank holdups.

The escape charge, by comparison, carried only a maximum of five additional years in prison on conviction.

By dropping the escape charge, prosecutors also avoid another trial for Banks.

After his indictment for the bank robberies, Banks changed his attorneys multiple times and flooded the court with motions, all serving to stall the start of the trial for nearly five years after his 2008 arrest.

Then at trial Banks represented himself and caused repeated interruptions by refusing to recognize the rules of the court and defying orders from the judge.

At one point, he was briefly restrained in a chair.

Banks’ cellmate, Kenneth Conley, also took part in the escape on Dec. 18 and remains at large.

asweeney@tribune.com

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FTC ends long Google probe with mild reprimand

WASHINGTON (Reuters) - U.S. regulators on Thursday closed a long-running investigation of Google with a relatively mild agreement that is likely to disappoint rivals and critics of the Web search giant.

Under the agreement, Google agreed to end the practice of "scraping" reviews and other data from rivals' websites for its own products, and to allow advertisers to export data to independently evaluate advertising campaigns, the Federal Trade Commission said.

FTC Chairman Jon Leibowitz said Google also agreed to license standard patents on "fair, reasonable and non-discriminatory terms."

At a press conference, Leibowitz said that the Commission had scoured through some 9 million pages of documents and taken sworn testimony from key Google executives on the way to resolving its investigation in a "sensible" fashion.

"This was an incredibly thorough and careful investigation by the Commission, and the outcome is a strong and enforceable set of agreements," he said.

The FTC defended the itself from likely criticism that it had gone too soft on Google.

Reuters reported in December that Google's critics, anticipating a weak conclusion to the FTC's investigation, may be ready to take their grievances to the Justice Department.

"Even though people would like us to bring a big search bias case, the facts aren't there," Leibowitz said, adding that it was "mistaken" for Google's critics to think that criticizing the FTC's deliberations might benefit them in other jurisdictions.

(Reporting by Diane Bartz, writing by Ros Krasny; editing by John Wallace and Nick Zieminski)

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NHL, union resume talks in hopes to save season

NEW YORK (AP) — After a long night of talks, the NHL and the union are returning to negotiations — just later than expected.

The sides were supposed to meet at the league office Thursday at 10 a.m. EST. That, however, did not happen. The Players Association said it was updating its members on negotiations.

Players and union staff began arriving at NHL headquarters a little before a 1 p.m., although union head Donald Fehr was not part of the group.

With the lockout in its 110th day, both sides understand the urgency to save a shortened season. They have moved closer to one another while swapping proposals, but key issues remain — pensions and salary cap, among them.

Commissioner Gary Bettman has said that the league told the union a deal needs to be in place by next week so a 48-game season can begin Jan. 19. All games through Jan. 14 along with the All-Star game have been canceled, claiming more than 50 percent of the original schedule.

The sides met in small groups throughout the day Wednesday. They then held a full bargaining session with a federal mediator at night that lasted nearly five hours and didn't wrap up until about 1 a.m. Thursday.

The biggest detail to emerge from those talks was that Fehr is still the executive director of the players' association, which passed on its first chance to declare a disclaimer that would dissolve the union and turn it into a trade association.

Last month, players voted overwhelmingly to give its executive board the right to declare the disclaimer, but that permission expired at midnight Wednesday. The disclaimer would allow individual players to file antitrust lawsuits against the NHL. Fehr wouldn't address the issue, calling it an "internal matter."

"The word disclaimer has yet to be uttered to us by the players' association," Bettman said. "It's not that it gets filed anywhere with a court or the NLRB. When you disclaim interest as a union, you notify the other side. We have not been notified and it's never been discussed, so there has been no disclaimer."

The thought was that the union wouldn't take action Wednesday if it saw progress was being made. Neither side would characterize the talks or address what, if any, movement toward common ground was reached.

"There's been some progress but we're still apart on a number of issues," Bettman said. "As long as the process continues I am hopeful."

A deal can't be done without a resolution on pensions. Bettman called the pension plan a "very complicated issue." A small group meeting on the pension issue was held Wednesday morning before the players' association presented its offer.

"The number of variables and the number of issues that have to be addressed by people who carry the title actuary or pension lawyer are pretty numerous and it's pretty easy to get off track. That is something we understand is important to the players."

The union's proposal Wednesday makes four offers between the sides since the NHL restarted negotiations Thursday with a proposal. The league presented the players with a counteroffer Tuesday night in response to one the union made Monday.

Fehr believed an agreement on a players-funded pension had been reached before talks blew up in early December. That apparently wasn't the case, or the NHL has changed its offer regarding the pension in exchange for agreeing to other things the union wanted.

The salary-cap number for the second year of the deal — the 2013-14 season — hasn't been established, and it is another point of contention. The league is pushing for a $60 million cap, while the union wants it to be $65 million.

In return for the higher cap number players would be willing to forgo a cap on escrow.

"We talk about lots of things and we even had some philosophical discussions about why particular issues were important to each of us," Bettman said. "That is part of the process."

The NHL proposed in its first offer Thursday that pension contributions come out of the players' share of revenues, and $50 million of the league's make-whole payment of $300 million will be allocated and set aside to fund potential underfunding liabilities of the plan at the end of the collective bargaining agreement.

Last month, the NHL agreed to raise its make-whole offer of deferred payments from $211 million to $300 million as part of a proposed package that required the union to agree on three nonnegotiable points. Instead, the union accepted the raise in funds, but then made counterproposals on the issues the league stated had no wiggle room.

"As you might expect, the differences between us relate to the core economic issues which don't involve the share," Fehr said of hockey-related revenue, which likely will be split 50-50.

The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.

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Putin gives tax exile Depardieu Russian citizenship

MOSCOW (Reuters) – Russian President Vladimir Putin has granted citizenship to Gerard Depardieu, the French movie star who is quitting his homeland to avoid a tax hike on the rich, the Kremlin said on Thursday.

The “Cyrano de Bergerac” actor bought a house across the border in Belgium last year to avoid a new tax rate for millionaires in France planned by Socialist President Francois Hollande but said he could also seek tax exile elsewhere.

Kremlin spokesman Dmitry Peskov said Depardieu had applied for citizenship after Putin told reporters last month the actor would be welcome in Russia. “The citizenship could not have been granted to him without (such an) appeal,” Peskov added.

Russia has a flat income tax rate of 13 percent, compared to the 75 percent on income over 1 million euros ($ 1.32 million) that Hollande wants to impose in France.

Asked, whether Depardieu had plans to move to Russia, Peskov said it was up to him and was “absolutely not mandatory”. Putin did not speak to Depardieu before taking the decision, he added.

Depardieu’s publicist Francois Hassan Guerrar told Reuters he did not want to comment on the Russian announcement.

Depardieu, 63, had told friends he was considering three options to escape France’s new tax regime: settling in Belgium, relocating to Montenegro, where he has a business, or moving to Russia, French daily Le Monde reported in December.

Depardieu has also said he plans to hand in his French passport and social security card.

“Putin has already sent me a passport,” Le Monde quoted the actor as jokingly saying in December.

WELCOME IN RUSSIA

Depardieu is well-known in Russia where he has appeared in many advertising campaigns. He worked in the country in 2011 on a film about the eccentric Russian monk Grigory Rasputin.

In 2012 he was one of several Western celebrities invited to celebrate the birthday of Ramzan Kadyrov, Chechnya’s Kremlin-backed leader.

Muscovites said they would welcome Depardieu. “He is a normal guy, he is fond of drinking too, I suppose, the Russian way, so let him come here,” said resident Lev Nikolaevich.

Putin has in the past touted good relations with France, which he visited in the summer, but the two nations have disagreed sharply on Syria and Putin is a frequent critic of the West. He had a tense summit with the EU last month and wants the bloc to move faster toward visa-free travel.

Russia does not require people to hand in their foreign passports once they acquire a Russian one. Many Russians have citizenship of other countries and travel without problems.

Depardieu could also request Belgian nationality but has not yet made such a request, said Georges Dallemagne, head of Belgium’s parliamentary committee that oversees naturalizations.

“As a Russian he could certainly remain in Belgium, he would possibly need the necessary visas but for a short period he could stay here,” said Dallemagne.

“He would need to request a residency permit for longer stays but as a Russian he should be able to get that. It depends on certain factors,” Dallemagne added.

France’s Constitutional Council last month blocked the planned 75 percent tax rate due to the way it would be applied – but Hollande plans to propose redrafted legislation which will “still ask more of those who have the most”.

(Writing by Megan Davies; Additional reporting by Steve Gutterman, Nikolai Isayev and Alexander Fedorov in Moscow, Catherine Bremer in Paris and Robert-Jan Bartunek in Belgium; Editing by Andrew Heavens)

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