Thursday, January 30, 2020
EC Defense Essay Example for Free
EC Defense Essay Introduction Public security of Member States has long been on the agenda of the EC, which has culminated in the establishment of a European Defence Market to â€Å"support the Council and the Member States in their effort to improve the EUs defence capabilities in the area of crisis management and to further The European Security and Defence Policy.†[1] The EU also established a programme for countering illegal trafficking of arms.[2] However, national safety and defence has to do with nationalism and state sovereignty. It is doubtful whether a state can feel itself to be independent without being in control of its own defence. It has often been the case that regulations made by the European Community (EC or the Community) regarding trade and citizens’ movement within the territory have on occasion led to the discomfort of several Member States. The Treaty of Maastricht states that one of the major tasks of this supranational organisation is to establish a â€Å"common market†which promotes â€Å"convergence of economic performance†[3]. The Treaty objectives are largely realised through trade, and public procurement Directives, competition and Merger Regulations also exist to maintain the uniformity of trade on the European Common Market. Yet it might not be immediately obvious why documents governing trade, competition, and mergers would become a mechanism that regulates a country’s ability to defend itself. [4]  However, this has been an object of concern to EC Member States and has sparked a proliferation of legal literature discussing the extent to which this is (or has been) possible. An important part of national security and defence is to obtain up-to-date arms and other equipment necessary for the running of the military and constabulary forces as well as other departments responsible for State security. As no country produces all the products it needs for its defence, the balance must be acquired through trade with other countries. The purpose of this essay is therefore to explore the effect of the EU trade regulation of competition and mergers on the defence industries of Member States. It will assess these laws’ control over the means through which Member States are able to acquire the equipment necessary for national defence. Mergers, Trust, Subsidies, and Procurement Directives One of the duties of the European Commission is to stand as guardian of the Treaty that established the EC. Free trade on the common market is one of the major provisions of that Treaty, and competition within the EU is threatened in the presence of cartels or whenever mergers occur. These types of activities are subject to a substantive Competition Test, which gives the Commission the right to intervene wherever a merger occurs that is hostile to healthy competition as it regards trade on the European Common Market. All scenarios that follow mergers and that fail the test (including the existence of oligopolies) are subject to the scrutiny and handling of the European Commission and to possible escalation to the level of the European Court of Justice (ECJ).[5] Mergers have much to do with competition. When companies merge or have an understanding or trust they behave more and more like monopolies, oligopolies or cartels. Government subsidies and laws that regulate the purchases of nationals from a particular company often have the effect of behave like mergers and trusts. However, the government might, for defence purposes, see the need to make laws governing the nation’s spending in a certain market. It might also see the need to exclude other nationals or business from bidding on contracts if such bidding is deemed a threat to the nation’s security. Legislation by the Commission of the European Union disallows this kind of law-making on the part of the Member States. The Merger Regulation 4064/89 applies to these situations, and therefore might exercise a significant amount of control over defence. Public procurement is the process by which government bodies acquire equipment and services.[6] This represents about 14% of EU Member States gross domestic product.[7] Rules regarding this come from the EU in the form of Directives which are subsequently adopted by Member States. Public sector contracts, services and supplies are published across the EU, facilitating free trade in these areas as well. Breaches of these rules can be pointed out by the European Commission, and can incur legal action before the European Court of Justice.[8] The laws of the EC make it clear that competition should in no way be hindered, in the pursuit of the objective of good value for money[9]. Mergers and government subsidies are cases in which this might happen. However, there is evidence that where governments sanction mergers of companies that deal with military equipment, the effects of Merger Regulation 4064/89 might be escaped. The creation of Eurocopter and its encouragement by the French and German governments demonstrate this. Although the Commission granted that the merger was governed by the Regulation, it conceded that such a venture was â€Å"compatible with the Single European Market.†[10] In addition, Article 21 and Court opinions formed as a result of the Aà ©ropatiale-Alenia-de Haviland case allow for Member States to take measures necessary to protect interests considered legitimate, and national security is admitted as part of that group. Therefore, though the EU Commission often does have a significant amount of control over defence industries, certain privileges are granted to the Member States for matters of national security. With soft defence materials the rules change slightly. In such cases, prohibitions of mergers by the Commission are final. If, however, the Commission chooses to allow such a merger, the Member State is at liberty to prohibit it. It has been found that exemption from the Merger Regulation all hard defence materials might be prudent, as mergers would help with competition against non-European countries such as the United States. As it stands, however, the Commission enjoys full control over soft defence (or dual purpose) goods, and tempered control over hard defence materials. With regard to the Directives governing public procurement of equipment and services, the European Commission demonstrates another way in which it can have an impact on Member States’ defence industry. One case finds the Commission applying to the European Court of Justice for a declaration that Belgium had failed to fulfil its directive obligations (with regard to 92/50/EEC), being in breach of the provisions Articles 11(3) and 15(2). Belgium had â€Å"issued a restricted invitation to tender†for the surveillance of its coastal regions by means of aerial photography, and did this without expressly notifying the European Communities via the Official Journal.[11] It is of note that this kind of coastal surveillance can have immense implications for national defence. However, the Commission faulted the Member State for neglecting to perform the necessary publishing measures before executing actions toward procurement of the contracts. The ECJ found it necessary to determine whether the action of the Belgian government was even governed by the Directive in question, considering that much of the contract regarded aerial photography and the Directive mainly deals with architectural, engineering, and landscaping services. The Court’s opinion was that it saw â€Å"no reason to call into question the Belgian Governments assessment that aerial photography accounts for the predominant value of the contract. Accordingly, the contract falls under Annex I B, with the result that the tendering procedure under Community law, under Titles III to VI of Directive 92/50, does not have to be followed.†[12] Here the Member state was granted autonomy in that sphere of defence. However, had the contracts involved a slightly different type of service, the Commission might have been awarded the case. Trade Laws and Defence Certain of the EC Articles, namely 30 (ex 36), 39(3) (ex 48), 58(1) (b) (ex 73d), (81)(1), 226, 296 (ex 223), and 297 (ex 224) deal explicitly with issues of trade and competition that concur with those of national security, and offer ways in which the Member States can attend to their national interest where they might conflict with the terms of the Treaty. However, some of the articles are equivocally worded such that they allow for sometimes opposing interpretations. These articles lead to uncertainty with regard to the provisions of Treaty as well as to how the European Court of Justice would rule in certain situations. Therefore, it is unclear exactly how Member-State sovereignty is affected by the Treaty, since certain controversies have arisen because to some extent the Treaty has touched the industries that deal in the trade of materials necessary for national defence. Articles 28 and 29 of the EC Treaty agreement ban restrictions on the quantities of goods that can be imported or exported by the Member States. However, article 30 states that such restriction â€Å"shall not preclude prohibitions or restrictions on imports, exports, or goods in transit justified on grounds of [†¦] public security.†This grants Member States the ability to derogate from the regular stipulations of the treaty should the goods in question pose a threat to public security. Clearly in this case, although the treaty is apt to regulate areas of the defence industry, the articles make way for the countries to be free from its influence in that regard. In fact, in June of 2003, the European Union adopted a Common Position requiring that Member States enact â€Å"ad hoc†legislation to regulate the activities of arms brokers.[13] However, the use of the word â€Å"require†indicates that the power to act in that way was conferred upon the state by an organisation in whose possession the power had rested before. It also implies that to some degree power still rests in the hands of that body. A closer look at EC Article 30 supports this idea. It reads: â€Å"Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.†This implies that any Member State that wishes to enact laws affecting the defence industry for the purpose of protecting their interests must do so for specific and justifiable reasons. Indeed, the use of the term ad hoc in the 2003 EU position on arms brokering indicates that the control that Member States are granted over their defence market laws is not a general one, but one that materialises only under extenuating circumstances. The Irish case involving Campus Oil is an interesting example. The Irish requirement that 35% of all oil and petroleum products be purchased from the national refinery constituted a case of according an unnatural advantage to a supplier on the Common Market. This was done to protect the Irish economy and to scaffold the company, but might be considered a matter of defence since such military equipment as tankers would require fuel from this national refinery in the event of a national emergency. It was therefore crucial for the refinery to stay in business. The Court saw this necessity, and allowed the national requirement to remain in place.[14] What this case demonstrates is that the European Community law regimes on trade, competition, mergers and the like do have the power to regulate the laws that regard the defence industry. Though the EC laws cited do not relate specifically to defence, the surveillance of a coastline or the protection of a State’s leading energy company can have immense implications for national security. These laws were enacted to combat that effect, and the EC law was able to call that Member State law into question. It, however, did ultimately grant leave to the Member States because of the delicate nature of the situation. Competition and Defence The EC Treaty article that concerns the distortion of competition exists to prevent scenarios in which monopolies could arise in the marketing of certain military goods and/or to certain areas. Articles 85 and 86 regulate situations to ensure that a firm or other venture which has a comparative advantage in the market does not in any way use that advantage to disrupt competition. As far as the Articles allow derogation from this rule, it is not clear whether private companies are able to claim that the provisions of the Articles apply to their situations. However, for derogation to be possible, such benefits as economic progress for both companies and consumers must be proven, and neither indispensable restrictions nor the elimination of competition for the products involved should result from the mergers. One aspect of the GEC-Siemens v. Plessey case concerned whether a company licensed to distribute arms has a right to award sub-licences. The Commission’s opinion on the subject was that only Member States are allowed to invoke article 296b[15]. Therefore, as far as private undertakings concerning military products are involved in the market, competition and free trade are to be assumed to govern military defence equipment.[16] With regard to resolving whether dual-use goods fall under the jurisdiction of the Treaty, there exists a list drawn up by the European Community in 1958.[17] Yet though it has not been officially published, it is now in the public domain. On it is contained traditional types of military equipment, such as tankers and other types of typically defence-oriented products. If this list were considered as containing all the items that are to be excluded from the jurisdiction of the Commission, then it would be clearer how far the EU laws govern the defence industries of Member States. Because goods that can be used both civilly and militarily are not present on the list, it would become clear that dual-use goods should fall solely under the jurisdiction of the Treaty. Though the list has been considered outdated by many, upon close consideration it can be found that many of the newer military equipment can be covered by the broad terms used in the list[18]. If, therefore, the list is to be considered exhaustive, it leads to the conclusion that dual-use goods are not covered by Article 296 and are therefore under the jurisdiction of the Commission. In such cases where dual-use goods are being traded for military purposes, then, the Commission would have some amount of control over the defence industry of the Member State in question. Recently the European Commission has sent forth a Communication[19] on the issue of the interrelatedness of civil, market and defence policies. The purpose of the Communication document is to promote and enhance more efficient spending on defence, to maintain competition in the defence industry, as well as to uphold fairness and ethics in the trade of defence materials. Long has the issue of European defence hung in limbo because of the problematic nature of defence collaboration among Member States. Such situations usually have resulted in encroachment upon the sovereignty of each state. The aims of the Communication are set to be effected through the monitoring of industries related to defence. This activity by the Commission is supported by EC Treaty Art. 296. Through this measure, the EC proposes to regulate licensing, delivery, certification, and other things which have caused arms-trade problems at the borders within the European Community. Beyond this, the EC recognises the importance of competition to the creation of defence sector that does not harm the common marketâ€â€a defence market that is as similar as possible to the market that exists for non-military goods.  Article 296 has been thought of as a prime obstacle to the European defence market integration, though the European Parliament believes that this article does allow for integration if the Member States cooperate.[20] This article gives states the right to take â€Å"such measures as it considers necessary†to protect its own security interests as far as these concern the procurement of arms and other military equipment. It further stipulates that any action implemented ought not to impair the functioning of the market as far as it concerns goods that are not explicitly military related. It is here that much confusion enters concerning the extent to which the European Community laws govern the defence industry, as demonstrated in the cases of Werner and Leifer.[21] Arrowsmith notes that the importance of the Treaty is largely manifest in actions that lie â€Å"below the thresholds†of the Member state legislation.[22] These states are, according to EC 296, clearly in charge of the trade of expressly military commodities. However, which body shall be in charge of regulating those goods that may be used for both civil and military purposes (dual-use goods) remains in question. Koutrakos reminds us that the Common Commercial Policy established in EC 113 grants exclusive competency to the Community itself. Without this competency in the hands of the EC, the Member States might be inclined to act in a way contrary to the intentions of the Community and create mistrust among the members.[23] In cases where the goods in question are military in nature and a Member State wishes to derogate from the terms of the Treaty, the effects of doing so are subject to a proportionality test. This test ascertains that â€Å"no other measure, less restrictive from the point of view of the free movement of goods, capable of achieving the same objective†could have been performed in its place. The measure must also achieve a maximum amount of good for the Member State with the most minimal of adverse effects on the Community as a whole.[24] Moreover, the provisions of Article 296 do not automatically apply to any country as it regards military security. This article has to be invoked by any party that perceives the necessity to curtail or otherwise regulate the trade of defence products. In that case, the state must also be prepared to offer reasons why such action is necessary, as the burden of proof lies on that state. The EC Court then has the right to intensely scrutinise the actions and motives of the Member state that chooses to derogate from the provision of the Treaty via Article 296. It also has the power to demand that it change its policy back to that of the EC if the motives prove unethical or the reasons inadequate. One such case is the Commission vs. Spain[25], in which the Spanish government had enacted laws exempting from the value-added tax (VAT) exports and transfers of military goods within the Community and to third countries. The argument by the Spanish government was that the measure was necessary for the health of the defence industry, and that such a measure was protected under the provisions of EC 296(1)(b). The Community itself invoked EC 226, which gives the Commission the right to give an opinion on any matter in which it considers that the state has not complied with the terms of the Treaty.[26] The Court ruled that any interpretation of Article 296 should be a limited one. So that where the wording of the article gives the apparent idea that all measures considered necessary by the Member States are viable, the Court emphasises that the states must be able to prove the necessity of those actions in order for them to go unchecked. In this way, Spain was forced to change its policy, and the EC law demonstrated a significant amount of control over the defence industry of Member States. Yet the Spanish derogation was a frivolous attempt, and represented what might be seen as a much lower level of scrutiny by the Court than other cases might. Other states with much more dire cases could conceivably be granted much more autonomy with regard to the regulation of their own portion of the defence market. The Member States have usually interpreted this article (EC 296) to mean that the exemption of defence material from the terms of the Treaty occurred automatically. On the other hand, the Community has held that any derogation by Member States must be according to strict rules testable by the aforementioned proportionality test. This would therefore mean that it is not only in the case of Spain’s obviously opportunistic case, but in all cases that â€Å"the Treaty would in general apply to hard defence material and [†¦] the Community has jurisdiction over these products unless a Member State can prove the existence of a situation justifying derogation from the regime.†[27] Other complications stem from the second part of Article EC 296(1)(b). This reads, â€Å"Such measures shall not adversely affect the conditions of competition in the common market regarding products which are not intended for specifically military purposes.†In the case between the Republic of Portugal and the Commission,[28] it was held by the Portuguese government that during the privatisation of the company Cimpor-Cimentos, no buyer would be able to acquire rights amounting to more than 10% of the shares. This privilege was reserved only for the Portuguese government. The Commissioners brought this government to the Court because its actions had in their view breached the EC laws against interference with competition. The Commission did acknowledge, however, that had the Portuguese law been concerned with matters of national security, an exception would have been made for the case. However, even in a Portuguese appeal to the Court, the opinion given by Advocate General Tizzano was that the appeal be rejected on the grounds that the action of that government served to impede competition on the European market. Therefore, though this case demonstrates that the ECJ clearly has the authority to force the compliance of Member States on questions of competition, it does sometimes refrain from this if/when defence equipment is involved. The Italian case C-423/98, Alfredo Albore [2000] ECR I-5965 concerned the right of any EU citizen to purchase land in any Member State. The Italian government made it illegal for the German citizen to purchase land declared â€Å"of military importance†to the country. Though this land, not being an expressly military commodity, does for that reason fall under the jurisdiction of the Treaty, the Court decided to allow the Italians derogation through the invocation of Article 296 and the declaration of the land a matter of national defence. Conclusion Some goods that are used by civilians and that can also be used for military purposes are regulated by the Commission. In other situations where countries accord merger rights or subsidies to certain business for military purposes, the Commission has a right to intervene and in those situations can be seen as regulating the country’s defence industry. Goods and services that are considered of military importance to a country may not always be explicitly military or differentiable from goods/services designated for civilian use. In those cases where the Commission has jurisdiction, the right is theirs to allow or prohibit the actions of a Member State government. The Treaties, Procurement Directives, and Merger Regulations of the European Community function in such a way as to promote a healthy market economy in which no producer or country has an unfair advantage with regard to the manufacture or sale of its product. The nature of the defence industry dictates that its functions often come under the regulations of the European Community, and this often indicates the possibility of national security problems for Member States. Because of this, several of the articles in these treaties/regulations allow for derogation from their provisions. Yet, in many cases this allowance has proven equivocal to the point where the European Court of Justice has had to become involved. The European Commission works hard to devise a method of regulation that accounts for the security of the individual states while maintaining the freedom of the Common Market; but as yet, where competition and merger control concerns public procurement and trade of dual-use goods, the EC still exercises, to a significant extent, control over the defence industry of its Member States. References Anders, Holger. (2004). â€Å"Controlling arms brokering: next steps for EU Member States.†         GRIP p6. Arrowsmith, Sue. (1995). The application of the EC Treaty rules to public and utilities  procurement. Public Procurement Law Review. 6.255-280. Arrowsmith, Sue. (2002). The EC procurement directives, national procurement policies,          and better governance: the case for a new approach.†27(1), 3-24. â€Å"Competition: Mergers (Overview).†Europa. Accessed 2 March, 2006.           http://europa.eu.int/comm/competition/publications/special/3_merger.pdf  â€Å"Commission of the European Communities v Kingdom of Belgium (C-252/01).†        Official Journal of the European Union. (2003). C 289/3.            http://europa.eu.int/eur-         lex/pri/en/oj/dat/2003/c_289/c_28920031129en00030003.pdf â€Å"Consolidated version of the Treaty establishing the European Community.†(2002).     Official Journal of the European Communities. C 325/33. Eikenberg, Katharina. (2000) â€Å"Article 290 (ex. 223) and external trade in strategic         goods.†European Law Review. 25(2), 117-138. Georgopoulos, Aris. (2005). â€Å"Defence procurement and EU law.†European Law Review.         30(4), 559-572. Georgopoulos, Aris. (2003). â€Å"Industrial and market issues in European defence: the       Commission Communication of 2003 on harmonisation and liberalisation of    defence markets.†Public Procurement Law Review. 4.NA82-89. â€Å"Fourth Annual Report on the implementation of the EU Joint Action of 12 July 2002 on          the European Unions contribution to combating the         destabilising accumulation    and spread of small arms and light weapons (2002/589/CFSP).†(2005). Official          Journal of the European Communities. C 109, vol. 48.P. 0001 – 0025.             http://europa.eu.int/eur-lex/lex/LexUriServ/LexUriServ.do?uri=CELEX:            52005XG0504(01):EN:HTML Koutrakos, Panos. (1998). â€Å"Exports of dual-use goods under the law of the European     Union.†European Law Review. 23(3) 235-251 O’Keeffe, D. Branton, J. (2006). â€Å"State Aid and Public Procurement: A Practical       Guide.†Hammonds. http://www.hammonds.com/FileServer.aspx?oID=21843 â€Å"Portuguese Republic v Commission of the European Communities (C-42/01).†CVRIA. (2004). http://curia.eu.int/jurisp/cgi-bin/form.pl?lang=en Saggio, Antonio. (1999). â€Å"Association Église de Scientologie de Paris and Scientology International Reserves Trust versus the Republic of France.†Opinion of Advocate       General Saggio. CVRIA. http://curia.eu.int/jurisp/cgi-  bin/form.pl?lang=enSubmit=Submitalldocs=alldocsdocj=docjdocop=doco           pdocor=docordocjo=docjonumaff=datefs=datefe=nomusuel=domain           e=mots=military+arms+goodsresmax=100 Trybus, Martin. (2002). â€Å"The EC Treaty as an instrument of European defence   integration: judicial scrutiny            of defence and security exceptions.†Common        Market Law Review. 39. 1347-1372. Trybus, Martin. (2005). â€Å"A fine balance: free movement and public security in the EC   Treaty.†European Union Law and Defence Integration. Hart: Oxford. Trybus, Martin. (0000). â€Å"European defence procurement: toward a comprehensive         approach.†European Public Law. Vol. 4(1). 111-133. Trybus, Martin. (2004). â€Å"The limits of European Community competence for defence.†European Foreign Affairs Review. 9, 189-217. Trybus, Martin. (2000). â€Å"On the application of the EC Treaty to armaments.†European Law Review. 25(6), 663-668. Trybus, Martin. (2002). â€Å"Procurement for the armed forces: balancing security and the  internal market.†European Law Review. 27(6), 692-713. Trybus, Martin. (2000). â€Å"The recent judgement in Commission vs. Spain and the           procurement of hard defence material.†Public Procurement Law Review. 4. NA          99-103. [1]             Georgopoulos, Aris. (2005). â€Å"Defence procurement and EU law.†European Law Review. 30(4), 559-572. [2]             Fourth Annual Report on the implementation of the EU Joint Action of 12 July 2002. [3]             Article 2. â€Å"Consolidated version of the Treaty establishing the European Community.†(2002). Official Journal of the European Communities. C. 325/33. [4]             Trybus, Martin. (2004). â€Å"The limits of European Community competence for defence.†European Foreign Affairs Review. 9, 189-217. [5]             â€Å"Competition: Mergers (Overview).†Europa. http://europa.eu.int/comm/competition/publications/special/3_merger.pdf [6]             Arrowsmith, Sue. (2002). The EC procurement directives, national procurement policies, and better governance: the case for a new approach.†27(1), 3-24. [7]             Trybus, Martin. (2002). â€Å"Procurement for the armed forces: balancing security and the internal market.†European Law Review. 27(6), 692-713. [8]             O’Keeffe, D. Branton, J. (2006). â€Å"State Aid and Public Procurement: A Practical Guide.†Hammonds. http://www.hammonds.com/FileServer.aspx?oID=21843 [9]             Arrowsmith, Sue. (2002). The EC procurement directives, national procurement policies, and better governance: the case for a new approach.†27(1), 3-24. [10]           Trybus, Martin. (0000). â€Å"European defence procurement: toward a comprehensive approach.†European Public Law. Vol. 4(1). 111-133. [11]           â€Å"Commission of the European Communities v Kingdom of Belgium (C-252/01).†Official Journal of the European Union. (2003). C 289/3. [12]           Ibid. [13]           Anders, Holger. (2004). â€Å"Controlling arms brokering: next steps for EU member states.†GRIP p6. [14]           Trybus, Martin. (2005). â€Å"A fine balance: free movement and public security in the EC Treaty.†European Union Law and Defence Integration. Hart: Oxford. [15]        â€Å"Any Member State may take such measures as it considers necessary for the protection of the essential interests of its security which are connected with the production of or trade in arms, munitions and war material; such measures shall not adversely affect the conditions of competition in the common market regarding products which are not intended for specifically military purposes.†. â€Å"Consolidated version of the Treaty establishing the European Community.†(2002). Official Journal of the European Communities. C. 325/33. [16]           Trybus, Martin. (0000). â€Å"European defence procurement: toward a comprehensive approach.†European Public Law. Vol. 4(1). 111-133. [17]           Ibid. [18]           Trybus, Martin. (2005). European Union Law and Defence Integration. Hart: Oxford. [19]           Georgopoulos, Aris. (2003). â€Å"Industrial and market issues in European defence: the Commission Communication of 2003 on harmonisation and liberalisation of defence markets.†Public Procurement Law Review. 4.NA82-89. [20]           Ibid. [21]           Eikenberg, Katharina. (2000) â€Å"Article 290 (ex. 223) and external trade in strategic goods.†European Law Review. 25(2), 117-138. [22]           Arrowsmith, Sue. (1995). The application of the EC Treaty rules to public and utilities procurement. Public Procurement Law Review. 6.255-280. [23]           Supra n.2 at 1364. Qtd. in Koutrakos, Panos. (1998). â€Å"Exports of dual-use goods under the law of the European Union.†European Law Review. 23(3) 235-251 [24]           Trybus, Martin. (2002). â€Å"The EC Treaty as an instrument of European defence integration: judicial scrutiny of defence and security exceptions.†Common Market Law Review. 39. 1347-1372. [25]           Trybus, Martin. â€Å"The recent judgement in Commission vs. Spain and the procurement of hard defence material.†4. NA 99-103. [26]           â€Å"Consolidated version of the Treaty establishing the European Community.†(2002). Official Journal of the European Communities. C. 325/33. [27]           Trybus, Martin. â€Å"The recent judgement in Commission vs. Spain and the procurement of hard defence material.†4. NA 99-103. [28]        â€Å"Portuguese Republic v Commission of the European Communities (C-42/01).†Cvria. (2004).
Wednesday, January 22, 2020
Free College Essays - A Comparison of The Red Room and The Signalman :: comparison compare contrast essays
A Comparison of The Red Room and The Signalman         I prefer ‘The Signalman’ story because I like stories with a mysterious ending to them or any mystery in the story itself. Just like in the beginning of ‘The Signalman’, the signalman thinks the narrator is a ghost and the narrator thinks that the signalman is a ghost too. It is like you don’t know who to trust anymore and what is right or wrong. Not like in ‘The Red Room’ when the three old people stayed together when the hero went out of the room, looking at him at an eerie way. At that time I know that what the hero did was wrong and something bad is going to happen to him. I mostly like it when I do not know anything or what will happen and especially keeps me in suspense. In ‘The Signalman’, the story of the haunting of the â€Å"appearance†makes the signalman feel very responsible of the two deaths which occurs after seeing the ghost and listening to its warnings. The first death that happens is when the signalman sees the â€Å"appearance†and listens to his warning. The dead and injured were brought over the spot were it stood on. The second death happens to a young and beautiful lady. After stopping the train they find her dead in the cabin. It is a very strange and sudden death, which makes me feel eerie and afraid, more than just knowing someone died, how this person dies and who did it. The most mysterious death is when the narrator went in the morning to the signalman’s box and finds him dead, under the â€Å"danger light†peacefully. That is what I like, it is very mysterious and don’t know who did it all, not like in ‘The Red Room’ the deaths were not convincing to me. In ‘T he Red Room’ there are two pervious stories about staying in ‘The Red Room’. The first story is that a young duke stayed in the room then came out running, opened the door and â€Å"fallen headlong†down the stairs. It happens because he wants to conquer the â€Å"ghostly tradition†of the palace. The second story is that a â€Å"timid†wife who her husband scared her to death, just for fun. H.G. Wells thinks that it is â€Å"half-credible†. In ‘The Signalman’, the signalman sees a â€Å"spectre†, the way the ghost stands under the light is a strange way.
Tuesday, January 14, 2020
The Business of Facebook
The business model of any organization is very important in helping a business become successful or unsuccessful. They help guide the leaders in the company to reach the goals and purpose of their organization. In recent news, the business model of Backbone has been under a large amount of scrutiny.I will be analyzing the business model of Backbone using the definition of business model from the textbook which states â€Å"A business model defines how an organization interacts with its environment to define a unique strategy, attract the resources and build the abilities required to execute the strategy, and create value for all stakeholders†(Applegate, Austin & Souls, 2009). STRATEGY There are four key dimensions to strategy: market positioning, product positioning, business networking positioning, and boundary positioning.These four dimensions combined help an organization develop a strategy which by definition of the textbook is the series of choices that determine the opp ortunities you pursue and the market potential of those opportunities (Applegate, Austin & Souls, 2009). In order to analyze the business strategy of an organization you must first determine what kind f business it is (Applegate, Austin & Souls, 2009). In E. B.Body's (2012) article â€Å"What is Passbooks Business†she states â€Å"[Backbone] creates a place for people to hang out and upload photos or pithy notes on what they are doing right that second, and then it posts advertising along the side of that status update highway. †Backbone services 845 million members all over the world, excluding China where Backbone has been blocked by the Chinese government. In December of 2011 Backbone averaged a total of 483 million daily active users worldwide (Form S-l, 2012).For a company such as Backbone, marketing position is very important. Market positioning determines the selection of customers that a business decides to serve (Applegate, Austin ; Souls, 2009). One of Pass books ten main principles is â€Å"One World†which states â€Å"The Backbone Service should transcend geographic and national boundaries and be available to everyone in the world (backbone. Com, 2012). Passbooks customer base is two-sided. They have the 845 million individuals that have profiles on the site and then they have the companies that advertise.Considering the fact that Backbone already has 845 million users and there are only seven billion people on the earth, here is not much room for Backbone to grow their consumer base. With China off significant growth in the user base of Backbone is very unlikely (Boyd, 2012). The other side to Passbooks customer base is the companies that purchase advertising on Backbone. Jonathan Blue (2012) states, â€Å"Any business would be foolish not to consider Backbone as an ongoing marketing option. †According to Blue, Passbooks advertising costs are incredibly cheap.For a monthly fee advertisers can run ads and in return t hey receive a report on viewer's impressions and click-through (Blue, 2012). In 2011 Backbone brought in $3. Billion in revenues from advertising alone. This accounts for eighty-five percent of their revenues. Backbone receives revenues from advertisers with many different objectives ranging from long-term brand awareness to stimulating an immediate purchase (Form S-l, 2012). The advertising on Backbone is based on the likes that users have on their accounts.Advertisers can decide what type of audience they think would be interested in their product, then Backbone displays adds on the sides of people's news feeds based on their likes and preferences (Blue, 2012). Product positioning is the choice of products and services hat a company offers. It includes the features of these products and the price at which they will be offered. Backbone offers a variety of product including pages, profiles, ads and sponsored stories and platforms (backbone. Com, 2012). Different sides of their cust omer base use different products that Backbone has to offer.Although the majority of Passbooks revenues come from advertising, they also receive income through other platforms where users purchase virtual and digital goods (Form S-l, 2012). The majority of the payments that Backbone receives from third-party applications come from Zingy, a social network gaming company (Boyd, 012). Business networking is the role that an organization plays and the activities it performs within an extended network of suppliers, producers, distributors and partners. Over the years Backbone has partnered with many different companies in order to offer more to its users and make it become more enticing to use.Backbone has formed partnership with many companies such as Microsoft, Cell Partners, Digital Sky Technologies and more. Boundary positioning is when an organization determines the markets and products that they will not pursue. Backbone has not specified any specific market that it has not decided to pursue. The founder, Mark Seersucker even traveled to China to speak with some of China's top technology executives in hopes of them removing the ban that had been placed on the use of Backbone in China. In 2009 the number of Backbone users in China plummeted from one million to 14,000 due to the ban.While user numbers in China have slightly risen, many users are still blocked from accessing the site (Chaos, 2010). CAPABILITIES Capabilities help a company implement their business strategy while paving the way for future growth. It also helps a business see what resources are necessary in order o successfully execute their strategy (Applegate, Austin, Souls, 2009). In order to service its consumers, Backbone has created an intricate infrastructure, including custom-built servers, racks and UPS units.In an article by Rich Miller, the CEO of Backbone, Mark Seersucker is quoted saying, â€Å"Being able to design more efficient servers†¦ Is a big part of enabling us to build th e features we add†(2011). When Backbone has not released a definite number of servers that it runs off of, it is believed that by 2009 the company was running at least 60,000 servers in its data centers (Miller, 2010). We can conclude that since Backbone has began to design more efficient servers, that they have the resources and technology needed to support their user base.As the number of users increases, Backbone increases the number of servers and data centers so that their consumers can receive the best in class. The Backbone team is also comprised of very well educated people, who have the expertise needed in order to run and continue to improve the operations of Backbone. In my research of the company I did not run into anything that made me believe that the employees of Backbone were not fully qualified and competent in order to run the business. I also believe that the company has strong leadership and is comprised of people who are committed to making Backbone succe ssful.Mark Seersucker is very involved in all aspects of the company. VALUE The majority of Passbooks stockholders are internal stockholders. Mark Seersucker, the CEO and founder of Backbone, owns twenty-four percent of the shares of Backbone. Some of the other leading stockholders include Cell Partners, Digital Sky Technologies, Microsoft, and co-founder Dustin Muscovite as well as many more (Carlson, 2010). Backbone has made recent headlines when GM decided to withdraw TTS $10 million contract with Backbone for advertising (Junk, 2012). This raised a very important question for many investors.Will Backbone be able to attract and retain key customers? The majority of Passbooks revenue is generated through advertising and in their S-l that was filed in January of this year Backbone warns investors that there is a high degree of risk that is involved in investing in Backbone. In order for Backbone to continue generating revenues, it will need to continue selling advertisement. While these revenues from advertising are purchased by business OTOH big and small, the success of Backbone selling advertising relies largely on the individuals that have profiles on Backbone.In their S-l Backbone states â€Å"If we fail to retain existing users or add new users, or if our users decrease their level of engagement with Backbone, our revenue , financial results and business maybe significantly harmed†(2012). One of the biggest marketing factors that Backbone has in selling advertisers is that a company who purchases advertising on Backbone could potentially reach the more than 800 million monthly active users on Backbone. This is also the downfall of advertising on Backbone. If the number of users decreases or people become less active, then that is less people that the advertising is reaching.
Sunday, January 5, 2020
David Koresh, Leader of Deadly Branch Davidians Cult
David Koresh (August 17, 1959–April 19, 1993) was the charismatic leader of a religious sect known as the Branch Davidians. During a deadly standoff in Waco, Texas with the Bureau of Alcohol, Tobacco, and Firearms (ATF), Koresh and more than 80 of his followers were killed. Early Years David Koresh (born Vernon Wayne Howell) was born in Texas to a fourteen-year-old mother. He never knew his father, who broke up with his mother before she gave birth. The young Koresh Howells mother later moved in with a violent and abusive man. When Koresh was four years old, he was sent to be raised by his maternal grandmother, but when he was seven, his mother got married and he went back to live with her and her new husband. However, he still attended religious services regularly with his grandmother, who took him to her Seventh Day Adventist church. As a teenager, Koresh struggled with dyslexia and was placed in special education classes. He was considered awkward and unpopular. He dropped out of school before his senior year of high school, and in his early twenties, he committed statutory rape, resulting in a 15-year-old girls pregnancy. He was later thrown out of his mother’s evangelical church after pursuing the pastor’s teenage daughter and saying that God had ordered him to marry her. By the early eighties, he moved to Waco, where he joined the Branch Davidians at their Mount Carmel Center. Within a year or so, Koresh was claiming to have the gift of prophecy. Sygma via Getty Images / Getty Images The Branch Davidians When Koresh joined the Branch Davidians, it is believed he was involved in a sexual relationship Lois Roden, the wife of Branch Davidian founder Benjamin Roden. Koresh said that God wanted him to father a child with Lois, who was 65 years old at the time, and that this child would be the â€Å"chosen one.†His interest in Lois soon waned, however, and in 1984 he claimed that God wanted him to marry a 14 year old named Rachel Jones. In 1984, Jones parents gave her permission to marry Koresh, who had at this point adopted the Koresh name (though he would not change it legally until 1990). After escalated infighting between Koresh and the Roden family, particularly Lois’ son George, Koresh and Jones left in 1995, along with 25 other members of the group. They moved to Palestine, Texas, 90 miles away from Waco, and lived in buses and tents for several years. Koresh used this period to recruit new members, not only from Texas but from California, Israel, and the United Kingdom. Following Lois Roden’s death., Koresh and George Roden found themselves battling for control of the Waco compound. George challenged Koresh to a spiritual duel of sorts, involving the resurrection of a corpse. Koresh took advantage of the opportunity to go to law enforcement and get George out of the way once and for all. He was told he’d need to provide evidence that George had illegally exhumed a dead body, and when he and seven supporters arrived at the compound, a gunfight erupted. George Roden was injured, and Koresh and his men were arrested. When they explained that they were on the property to gather evidence of abuse of a corpse, they were acquitted of the charges of attempted murder. In 1989, George Roden was himself charged with murder after killing one of his own supporters with an axe (the man had claimed to be the true Messiah). Once Roden was sent to a psychiatric prison, Koresh and his followers were able to raise the money to purchase the Waco property themselves. Accusations of Abuse There were repeated accusations against Koresh of statutory rape and â€Å"spiritual marriages with underage women. Koresh claimed to have fathered children with several women and girls in the group; he said he had received a revelation from God, telling him to father two dozen children to serve as leaders once the Rapture came. There were also claims that Koresh and other members of the group were physically abusing children. One incident involved the beating of Koresh’s three-year-old son Cyrus. A lengthy investigation by Child Protective Services was launched. Michelle Jones, one of the alleged victims, was assigned a surrogate husband to throw investigators off the trail. The investigators ultimately failed to turn up any concrete evidence. Meanwhile, Koresh and his followers had begun stockpiling weapons, forming an â€Å"Army of God,†to prepare for the apocalypse. Koresh claimed to have cracked the code of the Book of Revelations and warned that the End Times were near. Shelly Katz / Getty Images The Waco Standoff In February 1993, federal agents from the Bureau of Alcohol, Tobacco, and Firearms (ATF) went to the Waco compound to serve a warrant for illegal firearms and take Koresh into custody. The raid turned into a four-hour gunfight. At its conclusion, four ATF agents and six of Koresh’s followers were dead. This led to a standoff, which lasted 51 days. Did You Know? In the years since Waco, law enforcement officials have spent time studying the failed raid and the standoff itself in an effort to determine what went wrong. As a result, several changes have been made to federal law enforcement protocols in cases of hostage situations. Negotiators from the ATF and the FBI worked endlessly to end the standoff, and a few of the Branch Davidian members were able to exit the compound safely. However, more than 80 men, women, and children, remained inside. The ATF and the FBI used tear gas in an effort to end the siege. In response, the Branch Davidians continued the gunfire. As a result, the compound caught on fire. A few people managed to escape the fire, but 76 were killed. Most died when the compound collapsed during the blaze, while others were killed by gunshot wounds, including Koresh, who was found shot in the head. It has never been determined whether Koresh killed himself, or whether he was shot by another member of the group. Nearly two dozen of the dead were under the age of 17.
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