this is your business briefing. i'm sally bundock. d—day for google in europe. the us tech giant could be in for a record fine over allegations its android operating system gives it an unfair commercial advantage. and airbus says it's not giving up on its troubled super jumbo, despite keeping the double—decker away from the farnborough airshow. and on financial markets, asian shares today are riding higher thanks to soothing words from the head of the us central bank about the impact of protectionism. so, the tech giant google could be handed down a record fine later today by the european union's watchdog. the eu has spent three years looking into whether the company

has gained an unfair commercial advantage, and here's why. google provides the operating system for all android phones free of charge, with the condition that google chrome and its search engine are included as the default options. there are over 2 billion people using it every month. that's more than double the number of iphone users. and all of those people will be downloading other apps and can be targeted for advertising, a crucial revenue stream for google. the eu says this keeps users within the google universe — to the detriment of other providers, while google maintains that other alternatives are just a swipe away. last year, it paid a then record fine of $2.7 billion because the eu commission found it unfairly promoted its own online shopping tools and sites. suzanne rab is a barrister with serle court chambers and specialises in eu law.

iimagined i imagined you are very busy person right now. if we look into who will in particular, give us more detail on what the european competition commission believes google is doing wrong. so, the commission believes that google is abusing its market power, and there are three main strands to its concerns. the first one is that google is requiring smartphone manufacturers to p rei nsta ll smartphone manufacturers to preinstall google search and google chrome if they want to take the place talk. the second is allegations around exclusive obligations, they are also requiring smartphone manufacturers to take the google search functionality. and then a third element to their concerns, also called on defragmentation measures, which are requirements imposed by google that

the smartphone manufacturers do not sell devices on a rival android systems. so that is the crux of the commission's concerns. —— play store. will argue is actually our business model increases competition. on what asus kennett say that? google would say and have been saying up till now that their business model actually allows them to bundle together what consumers want. -- on what basis can they say that? and it allows them to deliver ona that? and it allows them to deliver on a consistent basis exactly what consumers are looking for, so they would say that they have opened the market and promoted competition stop right now, it is expected that the european competition commission will argue its case today and say it has found that google is anti—competitive. it could hand out the huge fine, 10% of revenues, which in the case of google could be over $11 billion. do you expect it

to go that far, the competition commission, and then google's response presumably would be an appeal. so the commission kennett fined up to 10% of global revenue, in practice, finds rarely reach that level. but it is expected that this would be a significant fine and comparable to the fine that was imposed on google in another case involving alleged abuse of dominance around its search and shopping sites. i think what is really interesting though will be what kind of corrective measures the commission might impose to alleviate the concerns it has and what kind of clarity that will give to google and others on what is permissible within the eu framework. so we will have to watch this framework. as ever, the devil is in the detail. thank you

for coming in and sharing your expertise with us this morning. as $0011 expertise with us this morning. as soon as we get news on what the competition commission is saying, we will update you. but now, let's take you to find a. —— farmborough. airbus says it's not giving up on its a380 super—jumbo despite strugging with sales. europe's biggest planemaker has decided against showcasing the world's largest passenger plane at the farnborough airshow this year. our very own theo leggett has been speaking with airbus's chief operating officer, and started by asking about brexit. i think the prime minister is committed to doing that. i think from the discussions we have had with her, she understands the key issues from an airbus point of view, which is frictionless movement of components and the ability to maintain the uk's role. so i think there are continuing political, i am not a political expert, i am an engineer, not a politician, buti have to say from an airbus point of view, we are very encouraged and we hope it continues to move in that

direction and clearly we also have to make sure that we send the same message into the european commission, so that they understand the importance of finding a practical solution. looking globally, trade tensions are clearly escalating. there is the prospect of a full—blown trade war. how worrying is that for you? i think i would agree by the comments —— with the comments made yesterday. it is a zero—sum game, oui’ encouragement would zero—sum game, our encouragement would be that we have has frictionless trading relationship as possible. just looking around the show, one thing i have noticed is that for the first time in more than a decade, you do not have the a380 super jumbo here, you a decade, you do not have the a380 superjumbo here, you have a mini jumbo instead. is that an acknowledgement that selling the a380 is simply proving too hard? acknowledgement that selling the a380 is simply proving too hard ?i maybe not the right person to ask because i was so personally committed to the programme, but i think it is more a reflection that we are selling, bringing the new

products to show them off and to make things like a flying display, and there is a limit to how many aircraft we can, economics, at the time of the flying, at display time, so we are bringing the latest product that we have. that does not mean by any means we have given up on the a380, we are still fully committed, and my personal belief is that the a380 still has its best yea rs that the a380 still has its best years ahead of it, which i think will come as we go into the next decade. while the ink dries on japan's bilateral pact with the eu, trade negotiators from the 11 countries remaining in the transpacific partnership are injapan to discuss whether to include new members in the grouping. let's go to our asia business hub, where rico hizon is following the story. nice to see you. so it would seem to pennies on the match, it is on a mission to get trade deals with all sorts of different countries on different terms. that is right and

just goes to show that free trade is alive and kicking, it had the pen with the european union and now japan with the trans—pacific partnership 11. trade negotiations are currently under way in discussing procedures for allowing new members to join this block. —— japan. the deal that succeeded the original trans—pacific partnership after the us withdrew injanuary of 2017, mexico was the first country to ratify this arrangement. i have to ratify this arrangement. i have to say the tdp will succeed without the united states, but others are quite sceptical, saying without the us it is unlikely the dpp will have the impact that the previous agreement possessed. —— analysts say. you also have the likes of

australia, new zealand, singapore, she lay among the countries that are pa rt she lay among the countries that are part of the trade group. columbia, according to some trading analyst, has requested to be part of the dpp. korea has fundamentally joined has requested to be part of the dpp. korea has fundamentallyjoined the dpp but still has to apply. so free trade is still indeed alive and kicking in asia. thank you, good to see you. now let's brief you on some other business stories. the chair of the federal reserve says the us is on track for more years of steady economic growth. but speaking to senators, jerome powell downplayed risks of an emerging trade war. he argued there would be a positive outcome if mr trump's bargaining ultimately produced a world with lower tariffs. astrazeneca will increase its stockpile of drugs by about 20% in preparation for a no deal brexit. the european regulator has told firms to be ready for a possible hard brexit in april 2019. astrazeneca says it's already spent more than $50 million

preparing for a no deal brexit. and video streaming services like netflix and amazon prime now have more subscribers than traditional pay tv services here in the uk. the country's media regulator says tv services will need to adapt to compete, saying it would be great to see a british netflix. a quick look at financial markets so you have a sense of how we are progressing today. and we had an up bit close for wall street as well, so of course everybody was trying to digests whatjerome powell had to say, as already mentioned. we also had some stronger results, up the results from deutsche bank and bank of america. that was counterbalanced by balancing the netflix disappointment. i will see you soon.

traffic on britain's roads could increase by more than 60% within 25 years, a government report will suggest next week. critics say this is a huge overestimate, that will lead to a controversial boom in road building. they say the forecasters are failing to take into account that people generally are driving much less. our correspondent roger harrabin has more. gridlock on many roads, but how bad will it get? the government the seas a rise of up to 60% in traffic by 2040, but a rise of up to 60% in traffic by 20110, but a traffic expert says that isa 20110, but a traffic expert says that is a wild over estimate. over the last 20 years there has been a really significant reduction in the

amount that younger people are driving, so younger males for example are driving half a mile is that they were in the mid—19 90s and there is a whole host of reasons for this, it is partly economic circumstances, it is partly staying in higher education longer, delaying having children, the role of social media, cost of insurance, there are a lot of factors but these changes are likely to last at least to some degree throughout their whole lives. the government says it has factored changing lifestyles into its forecast potentially be traffic rises, but some young people are clearly just not keen rises, but some young people are clearlyjust not keen on the car.|j have never wanted to learn to drive so it is just easier to get the train. especially for young males, insurance is really expensive, so it isjust cheaper to insurance is really expensive, so it is just cheaper to use insurance is really expensive, so it isjust cheaper to use public transport than owning a car. you do not need a car in the city centre, there is no need really. this is more than a debate about traffic numbers. it will affect decisions about harmony how much to spend, and

how far to meet the needs of people who just how far to meet the needs of people whojust do how far to meet the needs of people who just do not want to come. more on that story and of course all the other top stories, including the latest twist in the brexit saga, thatis latest twist in the brexit saga, that is coming up in the breakfast in around 17 minutes. you are with the briefing on bbc news, the headlines... 12 boys and their coach were released from a cave in thailand are expected to be released from a hospital later today. mps have voted down a plan that would have kept the uk in a customs union if no deal could be reached by january. it customs union if no deal could be reached byjanuary. it was rejected. there have been clashes in several towns in nicaragua after security forces ripped down barriers erected by security forces. the un has

accused the government of serious violations. so let's have a look at some of those stories and others in the media today. so let's begin. we begin with the washington post, which is looking at donald trump stating that he accepts intelligence on russian interference. the post is calling the correction "a strained effort at damage control" after comments at the helsinki summit set off global uproar. the independent‘s front page has former us president barack obama and his speech injohannesburg, where he said the world is living through strange and uncertain times. he also decried the use of strongman politics, in his most high—profile speech since leaving the white house. on the front page of the daily telegraph, british pm

theresa may narrowly avoids another challenge to the brexit plan, this time saved by four labour mps. in the japan times, we've got the massive trade deal betweenjapan and the eu. the paper says the free trading zone will account for roughly 30% of the world's gdp. and finally, staying with free trade, check out this story in the ft. a survey in china has found more than half of chinese consumers would boycott us goods in the event of a trade war with washington. so let's begin.