Associated Press Business Briefs - Sept. 11, 2024

Google and Apple lose their court fights against the EU and owe billions in fines and taxes

LONDON (AP) — Google has lost its final legal challenge against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision on Tuesday. It dismissed the company's appeal against the $2.7 billion penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. The commission's original decision in 2017 accused Google of unfairly directing visitors to its Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines the commission imposed on Google in the past decade as Brussels ramped up its crackdown on the tech industry.

Southwest Airlines shakes up its board under pressure from a big shareholder

Southwest Airlines will revamp its board and the chairman will retire next year, but it intends to stick with CEO Robert Jordan. The moves were announced Tuesday after Southwest met with representatives from hedge fund Elliott Investment Management, which is pushing for changes including a leadership shakeup at the airline. Southwest says six directors will leave the board in November and it plans to appoint four new ones, who could include candidates put forward by Elliott. And Chairman Gary Kelly will step down next year. Elliott has called for the ouster of Jordan and Kelly.

Labor costs remain high for small businesses, but a report shows wage growth is slowing for some

NEW YORK (AP) — Employee wages are one of the biggest costs for small businesses. A new survey found some owners may be seeing a bit of relief when it comes to wages. But while some say wage growth has stabilized or slowed, others note they haven't seen any moderation in their industries yet. The Paychex Small Business Employment Watch found hourly earnings growth for workers at firms with 50 employees or less dropped to 2.89% in August. It's the first time growth has dropped below 3% since January 2021.

Starbucks' new CEO wants to recapture the coffeehouse vibe

Starbucks' new chairman and CEO says he plans to focus on improving service and reestablishing the struggling coffee giant's stores as gathering places. In an open letter posted on the company's website on Tuesday, Brian Niccol said Starbucks is a beloved brand. But he says he found in conversations with employees and customers over the past few weeks a "shared sense that we have drifted from our core." Starbucks' sales have fallen this year due to weaker U.S. store traffic and other issues, including rising competition in China and boycotts in the Middle East. Niccol says improving the store experience for both baristas and customers will help turn that around.