Chinese growth, big drone funding and collective bargaining by smartphone

The daily briefing “FirstFT” from the Financial Times.

The EU will launch one of the defining antitrust cases of the internet era today, formally charging Google with abusing its dominance of the internet search market in Europe. (FT)

The European competition commissioner will accuse the US group of breaching antitrust rules by diverting traffic from rivals to favour its own services. Brussels will also launch a formal investigation into Google’s Android platform, focused on its distribution terms and compatibility tests for apps.

The commission’s statement of objections comes after a five-year investigation that Google came close to settling last year – the deal ultimately collapsed but here is how the inquiry has escalated and the EU’s concerns. It seems that the prediction from entrepreneur Barry Dillar that Google would inevitably run into trouble with regulators has come true. But if it does not extend its complaint beyond product search, says Richard Waters, Brussels is set to disappointmany of the companies that have lined up to complain about Google’s actions. (FT)

In the news:

Brakes on Chinese growth

The economy grew at its slowest pace in six years in the first quarter of this year as the country tries to shift the economy away from smokestack industries towards domestic consumption and services. Growth slowed to 7.0 per cent from 7.3 per cent in the fourth quarter of last year. This comes just after the IMF said India was expected to outperform China in economic growth for the first time in 16 years. (FT)

Another obstacle to Iran deal

The US Senate committee unanimously approved a bill that would give Congress the opportunity to reject any final nuclear agreement with Iran. This creates another hurdle for the White House just as it tries to turn the framework agreement agreed two weeks ago into a final deal by the end of June. (FT)

Cuba off the terror list

Barack Obama will remove the Caribbean island from the US list of state sponsors of terrorism after meeting with Raul Castro in Panama on Saturday. Taking Cuba off the list will further normalise relations with the communist nation and give it easier access to financing from international banks. (FT)

SpaceX third rocket retrieval fails

The rocket made it back to an ocean platform but landed “too hard” to survive. (BBC)

Morgan Stanley offered $1bn for oil unit

The bank has the most physical presence in petroleum markets among Wall Street rivals but has sought to sell the business over concerns about its disappointing returns on equity. A previous deal to sell to Russian state-owned oil company Rosneft expired during the wait for regulatory approval as tensions rose over the conflict in Ukraine. Now it has received an offer from Castleston Commodities International, a trading house backed by investors. (FT)

Big time drones

Investors reckon unmanned aerial vehicles will overcome regulation and safety concerns and are taking a bet on Chinese consumer drone maker DJI. The company, which made the drone that crashed on to the White House lawn this year, is in talks to raise funding at a valuation as high as $10bn. (FT, WSJ)

It’s a big day for:

Norway’s oil fund

The $880bn fund will begin to disclose in advance how it will vote at company shareholder meetings as part of its efforts to become a more active investor. The world’s largest sovereign wealth fund will also back shareholder resolutions at BP and Royal Dutch Shell to force the oil companies to reveal more about how they are tackling climate change. (FT)

The Liberal Democrats

After five years in the ruling coalition, the party releases its manifesto today and will promise an extra GBP2.5bn of spending on education. Despite suffering from the U-turn over university tuition fees, deputy prime minister Nick Clegg still thinks education most distinctly reflects his party’s belief in opportunity. (FT)

Food for thought:

Bargaining by smartphone

Even as the institutional labour movement has been eroded in the US, the use of social media and the disappearance of the days when corporations could dominate discussion about their brands with television adverts have created a new battleground between unions and employers. (FT)

Dealing with Somali pirates

The speed of transaction depends on the shipping company’s ability to raise money and the competency of the pirates. The New Yorker looks at the choices faced by captured crews as negotiations take place.

Women can’t close the wage gap alone

Another year, another failure to make serious progress towards paying women properly. Ann Friedman argues that rather than putting the burden on women to negotiate, we should be asking more of employers : “asking women to take responsibility for closing the pay gap with their ace negotiating skills is sort of like teaching women self-defence as a way of addressing sexual assault.” (NY Mag)

Video of the day

Tories change tack

David Cameron launched the Conservative manifesto with a vow to outspend the Labour party on the NHS and childcare. Lionel Barber and Janan Ganesh discuss why the Tories have abandoned their austerity mantra. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: The shadow of a woman is cast at the Old Building of Bank of Japan’s head office. REUTERS/Toru Hanai.