Tag Archives: REGS

U.S. seeks to speed rooftop solar growth with instant permits

Solar panels are seen on rooftops amid the coronavirus disease (COVID-19) outbreak, in Santa Clarita, near Los Angeles, California, U.S., June 18, 2020. REUTERS/Lucy Nicholson/File Photo

July 15 (Reuters) – The Biden administration on Thursday will roll out a tool that enables instant local permitting of rooftop solar installations, addressing a major source of industry delays and possibly lowering costs for homeowners, the Energy Department said.

The Solar Automated Permit Processing (SolarAPP+) platform, developed by DOE’s National Renewable Energy Laboratory, will be an optional portal for local governments to process permit applications automatically.

Approvals typically take a week or more currently, and permit-related costs can account for about a third of installers’ overall costs, DOE said. The software speeds the process up by standardizing requirements, streamlining the application and automating some approvals.

Administration officials said the software will help speed adoption of rooftop solar and achieve President Joe Biden’s goal of decarbonizing the U.S. electricity grid by 2035, a key pillar of his plan to address climate change. DOE has said that solar energy will need to be installed at a pace as much as five times faster than it is today to realize that goal.

“Having streamlined processes and an automated permitting platform that can make it faster, easier and cheaper for homeowners to go solar promises to really help expand the residential solar sector,” Becca Jones-Albertus, director of DOE’s solar energy technologies office, said in an interview.

Obtaining permits through local building departments has often proved to be a “pain point” for solar companies, according to Jones-Albertus. About a third of rooftop solar installations take more than two weeks for the permit process, DOE said.

SolarAPP+ was tested in four communities in Arizona and California starting last year. In Tucson, the portal reduced permitting review times from an average of 20 days to zero, the agency said.

An official from Stockton, California, a city that recently decided to adopt the SolarAPP tool, said it will free up staffers who have managed a 26% rise in solar applications over the last five years. It also allows homeowners to conduct the permitting process online rather than in person.

“It’s rare that you can find something that works this well for all of the parties involved,” John Alita, Stockton’s deputy city manager, said during a DOE webinar to unveil the tool.

The portal performs an automatic review of permit applications, approving eligible systems instantly. Complex or ineligible systems are re-routed for additional review.

Local governments will not have to pay for the portal, DOE said. DOE is challenging 125 mayors and local officials to sign up for the SolarAPP tool before the end of the summer.

Reporting by Nichola Groom; Editing by Dan Grebler and Cynthia Osterman

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Living with COVID-19: Israel changes strategy as Delta variant hits

  • Masks back on indoors in Israel
  • Delta variant has driven up infections
  • Israel following “soft suppression” strategy
  • Aims for minimum disruption to daily life

JERUSALEM, July 13 (Reuters) – Four weeks ago, Israel was celebrating a return to normal life in its battle with COVID-19.

After a rapid vaccination drive that had driven down coronavirus infections and deaths, Israelis had stopped wearing face masks and abandoned all social-distancing rules.

Then came the more infectious Delta variant, and a surge in cases that has forced Prime Minister Naftali Bennett to reimpose some COVID-19 restrictions and rethink strategy.

Under what he calls a policy of “soft suppression”, the government wants Israelis to learn to live with the virus – involving the fewest possible restrictions and avoiding a fourth national lockdown that could do further harm to the economy.

As most Israelis in risk groups have now been vaccinated against COVID-19, Bennett is counting on fewer people than before falling seriously ill when infections rise.

“Implementing the strategy will entail taking certain risks but in the overall consideration, including economic factors, this is the necessary balance,” Bennett said last week.

The main indicator guiding the move is the number of severe COVID-19 cases in hospital, currently around 45. Implementation will entail monitoring infections, encouraging vaccinations, rapid testing and information campaigns about face masks.

The strategy has drawn comparisons with the British government’s plans to reopen England’s economy from lockdown, though Israel is in the process of reinstating some curbs while London is lifting restrictions.

The curbs that have been reinstated include the mandatory wearing of face masks indoors and quarantine for all people arriving in Israel.

Bennett’s strategy, like that of the British government, has been questioned by some scientists.

Israel’s Health Ministry advocates more of a push for stemming infections, Sharon Alroy-Preis, head of public health at Israel’s Health Ministry, told Kan Radio on Sunday.

“It’s possible that there won’t be a big rise in the severely ill but the price of making such a mistake is what’s worrying us,” she said.

But many other scientists are supportive.

“I am very much in favour of Israel’s approach,” said Nadav Davidovitch, director of the school of public health at Israel’s Ben Gurion University, describing it as a “golden path” between Britain’s easing of restrictions and countries such as Australia that take a tougher line.

THE VIRUS ‘WON’T STOP’

Israel’s last lockdown was enforced in December, about a week after the start of what has been one of the world’s fastest vaccination programmes.

New daily COVID-19 infections are running at about 450. The Delta variant, first identified in India, now makes up about 90% of cases.

“We estimate that we won’t reach high waves of severe cases like in previous waves,” the health ministry’s director-general, Nachman Ash, said last week. “But if we see that the number and increase rate of severe cases are endangering the (health) system, then we will have to take further steps.”

Around 60% of Israel’s 9.3 million population have received at least one shot of the Pfizer/BioNtech vaccine. On Sunday, the government began offering a third shot to people with a compromised immune system.

Ran Balicer, chair of the government’s expert panel on COVID-19, said Israel had on average had about five severe cases of the virus and one death per day in the last week, after two weeks of zero deaths related to COVID-19.

Noting the impact of the Delta variant, he said the panel was advising caution over the removal of restrictions.

“We do not have enough data from our local outbreak to be able to predict with accuracy what would happen if we let go,” Balicer said.

Some studies have shown that though high, the Pfizer/BioNTech vaccine’s effectiveness against the Delta variant is lower than against other coronavirus strains.

Drawing criticism from some scientists, Pfizer (PFE.N) and BioNTech SE have said they will ask U.S. and European regulators to authorise booster shots to head off increased risk of infection six months after inoculation. read more

Israel is in no rush to approve public booster shots, saying there is no unequivocal data yet showing they are necessary. It is offering approval only to people with weak immune systems on a case-by-case basis.

Authorities are also considering allowing children under 12 to take the vaccine on a case-by-case basis if they suffer from health conditions that put them at high risk of serious complications if they were to catch the virus.

Only “a few hundred” of the 5.5 million people who have been vaccinated in Israel have later been infected with COVID-19, Ash said.

Before the Delta variant arrived, Israel had estimated 75% of the population would need to be vaccinated to reach “herd immunity” – the level at which enough of a population are immunized to be able to effectively stop a disease spreading. The estimated threshold is now 80%.

Such data ensure doctors remain concerned.

“…the virus won’t stop. It is evolving, it’s its nature. But our nature is to survive,” said Dr Gadi Segal, head of the coronavirus ward at Sheba Medical Centre near Tel Aviv.

Writing by Maayan Lubell; Editing by Jeffrey Heller and Timothy Heritage

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Brazil’s federal police open probe into Bolsonaro over vaccine deal – source

BRASILIA, July 12 (Reuters) – At the request of the Supreme Court, Brazil’s federal police has formally opened a probe into President Jair Bolsonaro related to alleged irregularities in the purchase of an Indian vaccine and could now question him, a source with knowledge of the matter said on Monday.

The president has been caught up in allegations of irregularities surrounding the 1.6 billion reais ($316 million) contract signed in February for 20 million doses with a Brazilian intermediary for the vaccine’s maker, Bharat Biotech.

A Brazilian Senate commission investigating the administration’s handling of the pandemic has cited suspicions of overpricing and corruption related to the contract. Some senators have alleged that Bolsonaro did not immediately look into allegations of wrongdoing when he was alerted.

After the reports of irregularities became public, the government suspended the contract.

The scandal has hurt Bolsonaro’s standing in the polls. Many are upset over his handling of the world’s second deadliest coronavirus outbreak, the vaccine corruption allegations and rising prices for fuel, power and food.

Brazilian federal prosecutors and the comptroller general’s office, or CGU, are also separately investigating the alleged irregularities in the deal.

Bolsonaro has denied any wrongdoing.

Reporting by Gabriel Stargardter; Editing by Alexandre Caverni and Aurora Ellis

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Johnson, set to ease England’s rules, says pandemic not over

  • UK PM set to outline end of COVID restrictions
  • Government says vaccines breaking link between COVID and deaths
  • Concern that Euro 2020 gatherings could accelerate infections

LONDON, July 12 (Reuters) – British Prime Minister Boris Johnson will urge caution on Monday as he confirms plans to remove nearly all remaining COVID-19 restrictions in England from July 19, despite a surge in cases to the highest levels in months.

Last week, Johnson set out proposals to eliminate rules on mask-wearing and social contact, and the instruction to work from home where possible, on what he has called a “one-way road to freedom”. He will announce his final decision at a news conference on Monday afternoon. read more

“The global pandemic is not over yet,” he said in a statement released late on Sunday.

“Cases will rise as we unlock, so as we confirm our plans today, our message will be clear. Caution is absolutely vital, and we must all take responsibility so we don’t undo our progress.”

Britain has implemented one of the world’s fastest vaccination programmes, with more than 87% of adults having received at least one dose of a COVID-19 vaccine and 66% having received two.

The government argues that the fact that deaths and hospital admissions remain far lower than before, even though cases have surged, is proof that the vaccines are saving lives and it is safer to open up.

Nevertheless, recent weeks have seen a striking surge in infections, to rates unseen since the winter, with some epidemiologists voicing concern that the Euro 2020 soccer championships might have helped to fuel the rise.

Britain, which ranks 20th in the world for per-capita reported deaths from COVID-19, on Sunday reported a further 31,772 COVID-19 cases and 26 additional deaths within 28 days of a positive test, up 31% and 44% respectively in the space of a week.

London’s Wembley Stadium hosted the final on Sunday between England and Italy. Large crowds gathered in London, including around the stadium, and there were reports that some had gained entry to the match without tickets to join the more than 60,000 who had them. read more

“Am I supposed to be enjoying watching transmission happening in front of my eyes?” World Health Organization (WHO) epidemiologist Maria Van Kerkhove tweeted in the late stages of the match. read more

“The #COVID19 pandemic is not taking a break tonight … #SARSCoV2 #DeltaVariant will take advantage of unvaccinated people, in crowded settings, unmasked, screaming/shouting/singing. Devastating.”

Johnson indicated last week that a legal requirement to wear masks in indoor public settings would be ended, although vaccine minister Nadhim Zahawi on Sunday said guidelines would state that “people are expected to wear masks in indoor enclosed spaces”, he said. read more

Johnson’s office says the green light to lift restrictions depended on meeting four tests: enough people being vaccinated, vaccines reducing hospitalisations and deaths, hospitals being free from pressure and variants not posing too great a risk.

Reporting by Costas Pitas and Alistair Smout, and by Emma Farge in Geneva;
Editing by Kevin Liffey

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As Hungary’s anti-LGBT law takes effect, some teachers are defiant

BUDAPEST, July 8 (Reuters) – When Hungary passed legislation last month curbing children’s access to discussion of homosexuality, transgender chemistry teacher Floris Fellegi-Balta was not sure he would be able to continue teaching at all.

Hungary’s new anti-LGBT law, which comes into force on Thursday, has caused anxiety in the LGBT community and added uncertainty to life under nationalist Prime Minister Viktor Orban’s government, which has stepped up its campaign against LGBT people ahead of elections next year.

Orban, in power since 2010, has grown increasingly radical on social policy in what he portrays as a fight to safeguard traditional Christian values from Western liberalism.

“I kept poring over the law to see whether I could even continue teaching,” said Fellegi-Balta, who specialises in biology and chemistry in a Budapest secondary school and is in the process of reassignment.

“One interpretation of the law is that by showing up and teaching, I am displaying transsexuality.”

The school, which is private, told him he should not worry. “We will do everything to keep the school a liveable place for the student body and to earn the trust of parents and our students,” one official told Reuters.

“And if a concrete case arises, we will argue our point on every legal forum,” she said.

The Hungarian law says under-18s cannot be shown pornographic content, or any content that encourages gender reassignment or homosexuality. It also proposes setting up a list of groups allowed to hold sex education sessions in schools.

Fellegi-Balta runs an extracurricular workshop which discusses LGBT (lesbian, gay, bisexual, transgender) issues and supports children in handling problems in their private lives.

“From a scientific standpoint, I would be lying if I did not tell children about the existence of homosexuality and transsexuality. But this does not mean I would be promoting these issues,” he said. “We will not exercise self-censorship.”

“CHILDREN ARE NOT BLIND”

Activists gather in front of a huge rainbow baloon put up by members of Amnesty International and Hatter, an NGO promoting LGBT rights, at Hungary’s parliament in protest against anti-LGBT law in Budapest, Hungary, July 8, 2021. REUTERS/Marton Monus

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The law, which has drawn condemnation across Western Europe, says teachers found violating it could face as yet unspecified penalties, which will be defined later.

Legislation will also determine whether courses like the one Fellegi-Balta is holding conform to the new law, a government spokesman said.

Orban’s government says the law is not aimed at homosexuals but is about protecting children and that it should be mainly up to parents to educate their children about sexuality.

After the law was passed, the Hungarian Civil Liberties Union published a post on a Facebook group saying the new law was unfair and so civil disobedience against it was justified.

Some teachers told Reuters they would continue to discuss LGBT issues in school, as such provisions of the law were unrealistic given that pupils themselves often raise the subject in class after reading about it online or watching a film.

“Children are not blind,” said Eva Gadanecz, who teaches in a public secondary school in Budapest. “They are not deaf, they live in the world and if they raise this in class or on a field trip, then you respond.”

Gadanecz told a story about a teenage girl who had shown her self-inflicted scars on her skin as she struggled to come to terms with her sexual identity.

“By talking about these issues, allowing children to see that they are not alone and that this is normal and accepted, then perhaps one teenager less will commit suicide, or two will avoid depression,” she said.

“I will continue as I have done so far. I am not willing to change anything.”

Adam Nemeth, a psychologist and former chair of the LGBTQ Section of the Hungarian Psychological Association, said it was his professional duty to treat patients regardless of any legal constraints.

“Honestly, if it really becomes a law in a sense that they are going to apply it, I am really looking forward to the case against me,” he said.

“If they said that I am harming my clients by being … respectful to their identies, I am up for them to bring it on… I am very angry with the whole thing.”

Reporting by Gergely Szakacs and Anita Komuves in Budapest and Alicja Ptak in Warsaw, Editing by Angus MacSwan

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EU fines Volkswagen, BMW $1 bln for emissions cartel

  • Sets precedent by applying antitrust law to technical talks
  • Daimler gets off fine after blowing whistle on cartel
  • VW considering taking legal action
  • BMW says cleared of suspicion of emissions cheating

BRUSSELS, July 8 (Reuters) – The European Commission fined German carmakers Volkswagen and BMW a total of 875 million euros ($1 billion) on Thursday for colluding to curb the use of emissions cleaning technology they had developed.

The case, separate to the so-called ‘Dieselgate’ scandal over software designed to cheat on vehicle emissions tests, sets a precedent by extending the application of European competition law to technical-level talks between industry players.

In this case, talks held a decade ago centred on design standards for AdBlue, an additive used to cleanse nitrogen oxide from the exhaust gases produced by diesel-powered cars.

“This is a first,” European Union antitrust chief Margrethe Vestager told a news conference in Brussels. “We have never had a cartel whose purpose was to restrict the use of novel technology.”

Under a settlement, Volkswagen (VOWG_p.DE) will pay a fine of 502 million euros and BMW (BMWG.DE) 373 million euros. Daimler, also part of the cartel, was not fined after revealing its existence.

Vestager said the German carmakers, which included VW units Audi (AUDVF.PK) and Porsche (PSHG_p.DE), had possessed the technology to reduce harmful emissions more than required under EU law but avoided competing to do so.

“So today’s decision is about how legitimate technical cooperation went wrong. And we do not tolerate it when companies collude,” said Vestager.

The EU had narrowed the original scope of its investigation to ensure its charges stuck.

IS TECHNICAL COLLUSION POSSIBLE?

Vestager said that all of the parties had agreed to settle the case and “have acknowledged their role in this cartel”.

Volkswagen, however, said it was considering whether to take legal action, saying the penalty over technical talks about emissions technology set a questionable precedent. read more

“The Commission is entering new judicial territory, because it is treating technical cooperation for the first time as an antitrust violation,” Volkswagen said, adding that the fines had been set even though no customers had suffered any harm.

The nub of the carmakers’ complaints boil down to whether setting common technical standards amounts to anti-competitive behaviour – or whether indeed it makes it easier for an industry as a whole to embrace new technology.

The Commission said in its 2019 charge sheet that the German carmakers had colluded to restrict the size of AdBlue tanks between 2006 and 2014, thus making the urea-based additive less convenient to use.

BMW noted in its defence that it had been cleared of suspicion of using illegal ‘defeat devices’ to cheat emissions tests. read more

“This underlines that there has never been any allegation of unlawful manipulation of emission control systems by the BMW Group,” BMW said in a statement.

In the Dieselgate scandal, VW admitted to using such defeat devices, leading to more than 32 billion euros ($38 billion) in vehicle refits, fines and legal costs for the Wolfsburg-based carmaker.

($1 = 0.8460 euros)

Editing by John Chalmers, Douglas Busvine, Maria Sheahan, Elaine Hardcastle

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Hungary rejects EU demand to ditch ‘shameful’ anti-LGBT law

BRUSSELS, July 7 (Reuters) – Hungary on Wednesday rejected a demand from the European Commission and many EU lawmakers to repeal new legislation banning schools from using materials deemed to promote homosexuality.

Last month, EU leaders lambasted Hungarian Prime Minister Viktor Orban over the legislation in a tense discussion behind closed doors, with Dutch Prime Minister Mark Rutte telling Budapest to respect EU values of tolerance or leave the bloc.

“Homosexuality is equated with pornography. This legislation uses the protection of children as an excuse to discriminate against people because of their sexual orientation,” Ursula von der Leyen, head of the EU’s executive Commission told the European Parliament. “It is a disgrace.”

The Commission can open a new legal case against Hungary at the European Court of Justice or use a new mechanism designed to protect the rule of law in the 27-nation bloc by freezing funding for countries that undermine democratic standards.

Orban, who faces a national election next year, has said the new law aims to protect children and does not discriminate against sexual minorities.

His chief of staff, Gergely Gulyas, reiterated that stance on Wednesday: “Brussels’ efforts to have us allow LGBTQ activists into schools and nursery schools are in vain, we are not willing to do that.”

The case is the latest flare-up between Hungary and the EU, which has already launched an investigation againstBudapest for undermining democracy. Orban has steadily tightened restrictions on media, NGOs, academics and migrants despite the criticism from Brussels, international watchdogs and rights groups.

Demonstrators attend a protest against a law that bans LGBTQ content in schools and media at the Presidential Palace in Budapest, Hungary, June 16, 2021. REUTERS/Bernadett Szabo/File Photo

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Hungary’s conservative ally, Poland, is expected to block any attempt to impose the maximum EU penalty of suspending Budapest’s voting rights in the 27-nation bloc.

‘OFFENSIVE AND SHAMEFUL’

EU lawmakers urged the Commission not to release to Hungary funds earmarked for supporting its economic recovery from the COVID-19 pandemic if they are to contribute to Budapest’s anti-LGBT agenda or before it can ensure solid anti-fraud protection.

Discriminating against LGBTI+ people is illegal in the EU, said Iraxte Garcia Perez, a Spanish EU lawmaker and the head of the socialist faction in the European Parliament.

“That is why the new law in Hungary must be repealed. An offensive and shameful law that goes against human rights.”

Lawmakers also spoke against so-called “LGBT-free zones” that some local authorities established in Poland, which also faces EU legal action.

At the other end of the spectrum, Spain became the first large EU country last month to approve a draft bill to allow anyone aged over 14 to change gender legally without a medical diagnosis or hormone therapy.

French President Emmanuel Macron has called the split over values between the liberal West and more conservative eastern countries such as Hungary and Poland a “cultural battle” that damages EU unity.

Reporting by Robin Emmott and Gabriela Baczynska; Editing by Toby Chopra, Giles Elgood and Gareth Jones

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French champagne industry group fumes over new Russian champagne law

PARIS/MOSCOW, July 5 (Reuters) – France’s champagne industry group on Monday blasted a new Russian law forcing foreign champagne producers to add a “sparkling wine” reference to their bottles and called for champagne exports to Russia to be halted.

The law, signed by Russian President Vladimir Putin on Friday, requires all foreign producers of sparkling wine to describe their product as such on the label on the back of the bottle — though not on the front — while makers of Russian “shampanskoye” may continue to use that term alone.

The French champagne industry group called on its members to halt all shipments to Russia for the time being and said the name “champagne”, which refers to the region in France the drink comes from, had legal protection in 120 countries.

“The Champagne Committee deplores the fact that this legislation does not ensure that Russian consumers have clear and transparent information about the origins and characteristics of wine,” group co-presidents Maxime Toubart and Jean-Marie Barillere said in a statement.

French Trade Minister Franck Riester said he was tracking the new Russian law closely, in contact with the wine industry and France’s European partners.

“We will unfailingly support our producers and French excellence,” he said on Twitter.

Moet Hennessy, the LVMH-owned French maker of Veuve Clicquot and Dom Perignon champagnes, said on Sunday it would begin adding the designation “sparkling wine” to the back of bottles destined for Russia to comply with the law.

LVMH (LVMH.PA) shares were down around 0.2% on Monday afternoon, underperforming the Paris bourse, which was up 0.34%.

Shares in Russian sparkling wine maker Abrau-Durso (ABRD.MM) were up more than 3% after rising as much 7.77% in early trade.

Abrau-Durso president Pavel Titov told Radio France Internationale on Saturday his firm does not have sparkling wines that would be called “champagne” in its portfolio and said he hoped the issue would be resolved in favor of global norms and standards.

“It is very important to protect the Russian wines on our market. But the legislation must be reasonable and not contradict common sense … I have no doubts that the real champagne is made in the Champagne region of France,” he said.

Reporting by Sudip Kar-Gupta and Leigh Thomas in Paris and Alexander Marrow in Moscow;
Writing by Geert De Clercq
Editing by Alison Williams, Andrea Ricci and Catherine Evans

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EXCLUSIVE After pressuring telecom firms, Myanmar’s junta bans executives from leaving

SINGAPORE, July 5 (Reuters) – Senior foreign executives of major telecommunications firms in Myanmar have been told by the junta that they must not leave the country without permission, a person with direct knowledge of the matter said.

A confidential order from Myanmar’s Posts and Telecommunications Department (PTD) in mid-June said senior executives, both foreigners and Myanmar nationals, must seek special authorisation to leave the country, the person said.

A week later, telecom companies were sent a second letter telling them they had until Monday July 5 to fully implement intercept technology they had previously been asked to install to let authorities spy on calls, messages and web traffic and to track users by themselves, the source said. Reuters has not seen the orders.

The directives follow pressure on the companies from the junta, which is facing daily protests from its opponents and a growing number of insurgencies to activate the spyware technology. read more

A spokesman for the military did not answer multiple requests for comment. The junta has never commented on the electronic surveillance effort, but announced soon after seizing power its aim to pass a cybersecurity bill that would require telecoms providers to provide data when requested and remove or block any content deemed to be disrupting “unity, stabilisation, and peace”. It also amended privacy laws to free security forces to intercept communications.

The travel ban comes after intensified pressure from military officials to finish the implementation of the surveillance equipment. The source, who spoke on condition of anonymity for fear of reprisals, said the ban was meant to pressure telecoms firms to finish activating the spyware technology, although the order itself does not specify a reason.

Soldiers stand next to military vehicles as people gather to protest against the military coup, in Yangon, Myanmar, February 15, 2021. REUTERS/Stringer/File Photo

Three other telecoms sources, also speaking on condition of anonymity, said the authorities had stepped up pressure on the companies to implement the intercept, but declined to elaborate further. Two sources said companies had been warned repeatedly by junta officials not to speak publicly or to the media on the intercept.

Telenor declined to comment. There was no immediate response to requests for comment from Ooredoo, state-owned MPT and Mytel, a joint venture between Vietnam’s Viettel and a Myanmar military-owned conglomerate.

Months before the Feb. 1 coup, telecom and internet service providers were ordered to install intercept spyware to allow the army to eavesdrop on the communications of citizens, Reuters reported in May. read more

Reuters was not able to establish how broadly the surveillance technology has been installed and deployed, but four sources said Norway’s Telenor ASA (TEL.OL) and Qatar’s Ooredoo QPSC (ORDS.QA) had yet to comply in full.

Among the military’s first actions on Feb. 1 was to cut internet access and it has still not been fully re-established, with telecoms given regular lists of websites and activist phone numbers to block.

The moves have left the future unclear for Myanmar’s telecom sector, which had been one of the fastest-growing globally. Telenor said on Friday it is evaluating the future of its operations in the country, with a source telling Reuters it is eying a sale of its Myanmar unit. read more

Reporting by Fanny Potkin in Singapore; Additional reporting by Poppy McPherson in Bangkok; Editing by Matthew Tostevin, William Mallard and Daniel Wallis

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EXCLUSIVE Amazon, Tata say Indian govt e-commerce rules will hit businesses -sources

NEW DELHI, July 3 (Reuters) – Amazon.com Inc (AMZN.O) and India’s Tata Group warned government officials on Saturday that plans for tougher rules for online retailers would have a major impact on their business models, four sources familiar with the discussions told Reuters.

At a meeting organised by the consumer affairs ministry and the government’s investment promotion arm, Invest India, many executives expressed concerns and confusion over the proposed rules and asked that the July 6 deadline for submitting comments be extended, said the sources.

The government’s tough new e-commerce rules announced on June 21 aimed at strengthening protection for consumers, caused concern among the country’s online retailers, notably market leaders Amazon and Walmart Inc’s (WMT.N) Flipkart.

New rules limiting flash sales, barring misleading advertisements and mandating a complaints system, among other proposals, could force the likes of Amazon and Flipkart to review their business structures, and may increase costs for domestic rivals including Reliance Industries’ (RELI.NS) JioMart, BigBasket and Snapdeal. read more

Amazon argued that COVID-19 had already hit small businesses and the proposed rules will have a huge impact on its sellers, arguing that some clauses were already covered by existing law, two of the sources said.

The sources asked not to be named as the discussions were private.

The proposed policy states e-commerce firms must ensure none of their related enterprises are listed as sellers on their websites. That could impact Amazon in particular as it holds an indirect stake in at least two of its sellers, Cloudtail and Appario.

On that proposed clause, a representative of Tata Sons, the holding company of India’s $100 billion Tata Group, argued that it was problematic, citing an example to say it would stop Starbucks (SBUX.O) – which has a joint-venture with Tata in India – from offering its products on Tata’s marketplace website.

The Tata executive said the rules will have wide ramifications for the conglomerate, and could restrict sales of its private brands, according to two of the sources.

Tata declined to comment.

The sources said that a consumer ministry official argued that the rules were meant to protect consumers and were not as strict as those of other countries. The ministry did not respond to a request for comment.

A Reliance executive agreed that the proposed rules would boost consumer confidence, but added that some clauses needed clarification.

Reliance did not respond to request for comment.

The rules were announced last month amid growing complaints from India’s brick-and-mortar retailers that Amazon and Flipkart bypass foreign investment law using complex business strcutures. The companies deny any wrongdoing.

A Reuters investigation in February cited Amazon documents that showed it gave preferential treatment to a small number of its sellers and bypassed foreign investment rules. Amazon has said it does not give favourable treatment to any seller.

The government will soon issue certain clarifications on the foreign investment rules, Indian commerce minister Piyush Goyal told reporters on Friday.

Reporting by Aditya Kalra in New Delhi;
Editing by Euan Rocha and Louise Heavens

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