EU strikes back against Boeing : EU antitrust regulator to investigate Boeing-Embraer merger deal

Very good news. Few days ago Trumps regime announced that from 19th octobre they will put 10% tariff on all Airbus aircrafts sold into USA.

WTO ruled that USA could take tariffs worth 7.5 billion € from EU products because illegal subventions for Airbus planes. At same time a case against illegal subventions from the the US government towards Boeing is also under WTO decission. WTo already decided that USA too made illegal subventions for the american plane make but has not decided yet how high the tariffs are that EU can take from USA products. Its planned to publish the hight of penalties on US products in a few months. Experts say it could be up to 11 billion €.

The EU doesnt want wait until that time and now did a quite smart move. Boeing wants to buy the brazilian single aisle plane maker Embraer. Yesterday the EU announced they must do a very deep investigation into that merger. Boeing cant buy Embraer as long the EU blocks the deal and the investigation is running. The EU said the investigation will take until mid February.

Its estimated that Boeing loses 2.5 billion € because this procedure.

https://www.financial-world.org/new...tor-to-investigate-boeingembraer-merger-deal/

On Friday, the 4th of October 2019, the EU antitrust regulators had launched a full-fledged investigation on world’s largest low-cost aircraft carrier maker, Boeing Co.’s bid for a controlling stake of Brazilian commercial aircraft conglomerate Embraer.


Apart from that, the EU antitrust watchdogs had also added that the deal in effect could hurt competition and amp up expenses. On top of that, followed by the launch of a broader probe on Friday (October 4th), the EU Commission had been quoted saying that the deal reflected every potentiality to remove World’s third-largest aircraft carrier maker, Embraer, from the commercial aviation industry, while potential Boeing Co.

rivals from China, Russia alongside Japan would not be able to fill up the voids over the next decade due to a raft of regulatory hurdles alongside bureaucratic complications. Meanwhile, adding that a potential merger of Boeing Co.

and Embraer would also rub out the Brazilian planemaker from the single-aisle plane market, the EU Competition enforcer had been quoted saying on Friday (October 4th) that, both Embraer and Boing Co. had been engaging in a slew of should-to-should battles over pricing and other commercial aviation industry parameters across the globe including Europe, while a removal of Embraer SA would likely to decline competitions.

Further inside the bid, EU Commission was set to announce its decision by February 20th, an EU official alongside top officials of Embraer had confirmed late on Friday (October 4th).

 

Who cares, the EU won't exist in 2 decades time.

 

USA most likely wont exist anymore as well in 2 decades as well, considering there is more internal stress than in EU.

Thats not the point though, what France and Germany will never give up no matter the fate of the EU is the common market. This block of the Boeing merger is done on french and german initiative.

The European nations united have a unrivalled market power in the world and thats a weapon nobody will give away. So far the EU was always able to push the USA down economicly, simply through pure market power.

Last example is the 13 billion penalty put on Apple and the internet tax.

 

The EU is a little butt hurt over the WTO's decision. If Airbus tried to buy Embraer, the EU wouldn't say a damn thing....because the EU isn't the 'EU', it's Germany and France trying to dictate to all the other 'members' of the union. Germany has experience with dictators so it comes as no surprise.

 

The WTO also decided that USA does illegal subventions to Boeing and will decide the hight of tariffs we can take in next months.

And its the right of the EU to check this transaction.

 

Im not clear, how does the EU block a deal between two companies outside of the EU or is Embraer EU not Brazilian.

 

The EU can block the deal by putting heavy penalties on aircrafts sold from them. For the same reason that the UK believes it can block Iran to sell oil to Syria.

In other words, Boeing can merge with Embraer without EU agreement if they dont plan to sell aircrafts on the european market in the future.

 

So the fact is they can’t block it, the only thing they can do with breaking trade rules, good to know you have no respect for the law, so the plan is to further break WTO rules and be subject to more sanctions.

as for the oil thing within the law as described.

 

So EU now wants to regulate American and Brazilian companies. Since it has no jurisdiction at all we can ignore that.

 

If EU does something like that I wouldn’t be surprised if us put heavy tariffs on airbus.

 

As usual you have no clue about what you talk. Even Japan can block it. Boeing needs the agreement of all mayor markets before the merger can happen.

 

You cant, since Airbus are build in the USA. Or do you plan to put tariffs on aircrafts build in Alabama?

 

Well, not all of them are built in Alabama.

 

It has jurisdiction. Its called international law. The EU has to agree the merger or otherwise Boeing cant merge with Embraer.

Beside that its funny. On one side you want punish foreign nations for trading with Iran, even so you have no jurisdiction. But you are against it, when its turned against you? Double standards much?

I have news for you. The EU can not just check it, it can even block the merger or demand that Boeing and Embraer make changes in their plans.

 

I ask you something, why you thing Boeing is hellbend to stop any tariffs against Airbus? They fear the backlash. The North American market is small. If EU counters the tariffs and smacks tariffs on Boeing, Boeing would lose much more. And because of that both sides are quite reluctant in this fight. Boeing has far more to lose.

 

Well, there is a trend of EU airlines switching to Airbus. I looked at the trends with Lufthansa’s fleet and they do seem to be on the course of eliminating Boeing Aircraft.

 

Well would you buy from an enemy?

I was in New Caledonia in September. The journey from Frankfurt to Osaka was on Boeign 787-9 from KLM and it was bad. In many aspects it was laughable. You dont even have window shades anymore. You have to press on a button and the glass gets dark or transparent. But it takes minutes to change. When you see something cool and want take a photo it takes like 4 minutes until the glass gets transparrent. Its laughable.

Add the fact of the bad quality and you know why airlines elimate Boeing. Lufthansa found coke bottle in an aircrafts fuel tanks, open cables and garbage in the new delivered aircrafts.

And before you say that we make this up. Your own air force denies to accept new Boeing tankers because unacceptable quality problems

 

You are just jealous that A350 was a strategic failure and B787 won.

 

They forgot to send the cleaning crew to the aircraft before delivery.

In reality everyone knows why Lufthansa buys airbus planes - EU government pressures them to buy Airbus to cause artificial demand. You can’t really compete against that unless you open a local factory.

 

What?

A350 is a massive sucess. You mean the A380. And i´m not angry. The B787 is garbage but cheap.

That said, is your army also just jealous?

https://www.defensenews.com/digital...1/air-force-suspends-kc-46-tanker-deliveries/

And no, i´m not jealous. The 787 is just a trash plane. The old 777 we had to Australia last year was much better.

 

Coke botteles in fuel tanks, missing rivets...sorry but thats a big issue.

Boeing has a quality problem far over the 737 MAX

Do we also pressure Saudi Arabia to cancel their Boeing orders and switch to Airbus? Or Japan?

 

Yes, A380.
Throughout the 2000s everyone was watching Airbus and Boeing questioning what strategy will prevail - an airliner that can fly very far, but is not too big, or a giant plane that can pretty much move entire village. Boeing won, Airbus lost and your pride is hurt. 787 performs as promised and is in demand.

 

So is the A350.

Is your pride hurt that Boeing suffers so many strikes now? The 737 desaster, the quality problems, exploding doors...

 

The EU is not 'international law'. The EU doesn't have jurisdiction neither does kraut heaven. You can't block squat. What a joke your comment is. You may as well say "Germany is the center of the universe and we get to dictate every action in the world". Get lost man.

 

So far Embraer confirmed the EU probe and said it will delay the merger till 20th february after EU decided. being the biggest market helps alot to dictate.