Europe Likely to Be Harder on Google Over Search





PARIS — By some accounts, the United States let Google off the hook when it found that the technology giant had not abused its dominance in the Internet search market.







Yves Logghe/Associated Press

Joaquín Almunia has vowed to restore competition to the Internet search business in Europe.






Few expect the European antitrust watchdog to be as lenient.


The Federal Trade Commission ruled on Thursday that Google had not broken antitrust laws, after a 19-month inquiry into how it operated its search engine. But the European Commission, which is pursuing claims that the company rigs results to favor its own businesses, operates under a different standard.


The agreement with the American authorities, analysts and competition lawyers say, is unlikely to alter the demands of European regulators, led by the competition commissioner, Joaquín Almunia.


“We have taken note of the F.T.C. decision, but we don’t see that it has any direct implications for our investigation, for our discussions with Google, which are ongoing,” said Michael Jennings, a spokesman for the European Commission in Brussels.


Faced with nearly $4 billion in possible penalties and restrictions on its business in Europe, Google submitted proposals in July to remedy the concerns of the European Commission, which covered four areas. In its deal with the F.T.C., Google made concessions in two of those areas but was not required to do so in the rest.


A Google spokesman, Al Verney, declined to comment on the content of the company’s proposals to Mr. Almunia but said the company would “continue to work cooperatively with the European Commission.”


The Google case underscores a basic difference between the approaches to monopoly power in Europe and the United States. American antitrust regulators tend to focus on whether a company’s dominance harms consumers; the European system seeks to keep competitors in the market. Mr. Almunia has vowed to restore competition to the Internet search business in Europe.


“History shows that competition law is applied to monopoly power more stringently in the E.U. than in the U.S.,” said Jacques Lafitte, head of the competition practice at Avisa Partners, a consultancy in Brussels, who brought one of the original complaints against Google. “Whether the E.U. is right or not is a different question.”


Mr. Lafitte has some expertise in the matter. He is the former head of corporate affairs at Microsoft Europe and watched as that company did battle with regulators over its dominant computer operating system. Microsoft won a lenient settlement with the Justice Department in October 2001, he said, only to be slapped with nearly 1.6 billion euros, or $2.1 billion, in fines and penalties from the European Union from 2004 to 2008.


Google learned from Microsoft’s mistakes. It worked with authorities in both the United States and Europe to reach a deal rather than fight a desperate legal action. That approach appears to have paid off: last month, after a meeting with Eric E. Schmidt, Google’s executive chairman, Mr. Almunia said that the sides had “substantially reduced our differences.”


In its deal with the F.T.C., Google agreed to make concessions in two areas that concerned European regulators. In one, it will allow rivals to opt out of allowing Google to “scrape,” or copy, text from their sites. Google will probably offer the same concession to European authorities.


But in a second area of European concern — whether Google deliberately favors its own content in search results — the F.T.C. did not require changes.


Mr. Almunia has also demanded that Google put fewer restrictions on advertising distribution deals, an area his American counterparts did not explore.


The company will make a detailed set of proposed remedies in January. The European Commission will then allow the complainants to review them in a period of what is known as “market testing.” Antitrust lawyers say a final denouement could arrive by spring, depending on how hostile Google’s rivals are to the proposed remedies.


FairSearch, an alliance of Google rivals, accused the F.T.C. of rushing its decision. It said in a statement that closing the F.T.C. investigation “with only voluntary commitments from Google is disappointing and premature.”


The outcome in Europe may also be affected by Google’s dominance there. Google’s share of the United States search market was 67 percent in November, according to comScore, a digital analytics company, while its share in Europe was 83 percent that month.


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U.S. Settles Accusations That Doctors Overtreated


A group of doctors who performed unusually high rates of heart procedures on patients at a community hospital in Ohio settled with the Justice Department over accusations that some of the procedures were medically unnecessary, federal regulators announced on Friday.


The settlement covered accusations that the doctors and the hospital, then known as the EMH Regional Medical Center, had billed Medicare for unnecessary medical care from 2001 to 2006. The hospital agreed to pay $3.9 million to settle the accusations, and the physician group, the North Ohio Heart Center, agreed to pay $541,870, according to a Justice Department statement.


Federal regulators had accused the doctors and the hospital of performing unnecessary procedures known as angioplasties, in which a clogged blood vessel is opened. The procedure often requires insertion of a device called a stent to keep the blood vessel from closing again.


Besides the cost to Medicare, “performing medically unnecessary cardiac procedures puts patients’ lives at risk,” said Steven M. Dettelbach, the United States attorney for the Northern District of Ohio, which was involved in the investigation. “Patient health and taxpayer dollars have to come before greed,” he said.


The high rate of heart procedures at the hospital was the subject of a front-page article in The New York Times in August 2006. Medicare patients in Elyria, Ohio, where the hospital is located, were receiving angioplasties at a rate nearly four times the national average, a figure that prompted questions from insurers and raised concerns about overtreatment.


The concerns included whether many patients in Ohio and elsewhere were receiving expensive and inappropriate medical treatments because of the high fees the procedures generated.


The settlement represents the latest in a series of actions brought against cardiologists and hospitals for performing questionable cardiac procedures. Patients typically have a choice of treatments, and many doctors say some individuals should be treated more conservatively with medicines rather than through costly procedures.


At the time, the Elyria cardiologists defended their high rates as a result of an aggressive style of medicine, and the doctors continued to defend the medical care they provided. They said the procedures they performed were medically warranted but might not have met the government’s guidelines for reimbursement.


“We choose to settle rather than go to court,” said Dr. John Schaeffer, the chairman of North Ohio Heart, which is now part of the hospital system, EMH Healthcare. The government did not single out any individual physicians, and neither the hospital nor the medical group said it disciplined any of the doctors.


“As the physicians on the ground when these decisions were made and the procedures were performed, we felt confident we were making the correct choices for our patients,” he said in a statement on the group’s Web site. “We still do.”


The former manager of the hospital’s catheterization lab, Kenny Loughner, filed a whistle-blower complaint in October 2006. Mr. Loughner, who will receive $660,859 from the settlement for alerting the government, described how doctors urged nurses and others to falsify complaints of chest pain to justify the unnecessary angioplasties. He also described the doctors’ technique of treating patients in stages, forcing patients to come back for multiple procedures.


The government did not include the accusations in its findings, the hospital said, and they are without merit.


In a separate statement issued by EMH Healthcare, the system’s chief executive, Dr. Donald Sheldon, said “no patients, to our knowledge, were ever at risk, and there is no question that the patients treated had heart disease and some degree of blockage.” The hospital also said it was conducting an external peer review of its cardiac care.


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Massachusetts Plans Stricter Control of Compounding Pharmacies





BOSTON — New laws to strengthen state control of compounding pharmacies were proposed on Friday by Gov. Deval Patrick, in hopes of preventing another public health disaster like the current outbreak of meningitis caused by a contaminated drug made in Massachusetts.




The laws will be among the strongest in the country, said Kevin Outterson, a law professor at Boston University and a member of the expert panel that advised the state on how to curb abuses by companies like the New England Compounding Center, the Framingham pharmacy that made the tainted drug responsible for the nationwide meningitis outbreak.


The legislation would establish strict licensing requirements for compounding sterile drugs; let the state assess fines against pharmacies that break its rules; protect whistle-blowers who work in compounding pharmacies; and reorganize the state pharmacy board to include more members who are independent of the industry and fewer who are part of it.


Alec Loftus, a spokesman for the state’s Office of Health and Human Services, said that Mr. Patrick expected the new legislation to be passed quickly.


Daniel Carpenter, a professor of government at Harvard, said the proposed laws seemed sound and comprehensive. But he warned that if other states did not take similar steps, compounding pharmacies engaging in shoddy practices would just move to places with the weakest laws and the least oversight.


“The remaining question is not what Massachusetts is doing or will do, but will there be a minimum level of regulation like this in the rest of the states?” Professor Carpenter said.


The meningitis outbreak, first detected in September, was caused by contaminated batches of a steroid, methylprednisolone acetate, made by the New England Compounding Center. The drug was injected into about 14,000 people’s spinal area to treat back and neck pain.


As of Dec. 28, 656 people in 19 states had become ill with meningitis or other infections, like severe internal abscesses in the area where the drug was injected. Some have had both meningitis and spinal infections. The case count is expected to keep rising. Thirty-nine have died.


The New England Compounding Center was shut down, and inspections found extensive contamination. Investigations uncovered a long history of questionable practices that had drawn warnings from the state and the Food and Drug Administration.


On Dec. 21, the company announced that it had filed for bankruptcy. Numerous lawsuits have been filed against it.


At the heart of the problem have been gaps in regulation that have allowed such companies to avoid both state and federal controls. The company called itself a pharmacy, and pharmacies are generally regulated by states, while large drug companies are regulated federally, by the Food and Drug Administration.


Compounding pharmacies mix their own drug preparations, like skin creams and cough syrups, supposedly for individual patients with special needs. But the New England Compounding Center began to act like a manufacturer, making and shipping large amounts of injectable drugs, for which sterility is essential. No state law required it to obtain a license for this type of large-scale compounding, to follow good manufacturing processes or to let the state know it was shipping all over the country.


Dr. Lauren Smith, interim commissioner of the Massachusetts Department of Public Health, said the company “was a manufacturer in pharmacy clothing.”


Governor Patrick said, “The tragic meningitis outbreak has shown us all that the board’s governing authority has not kept up with an industry that has evolved from corner drugstores to the types of large manufacturers that have been at the center of so much harm.”


Dr. Smith said she thought the most important part of the new legislation was the requirement of a license for sterile compounding. “Now we are going to have the ability to develop specialty licenses that will allow us to track and identify those pharmacies that are engaged in different practices that could potentially put higher numbers of individuals at risk, such as those who engage in sterile compounding,” she said.


Professor Carpenter said a particularly powerful part of the proposal is that it requires licensure for out-of-state pharmacies that ship medication to Massachusetts. The state, he said, is a huge market for injectable drugs.


“Basically, if you think about the large hospitals, the amount of medical care that goes on in the state, it’s in a sense using the purchasing power of the state of Massachusetts to induce changes elsewhere,” he said.


The state has also taken other steps recently to rein in compounding, apart from the new legislation. It began conducting surprise inspections, and has required compounding pharmacies to report how much medication they are shipping and where, so that it can keep tabs on those that begin acting like manufacturers. It also requires the pharmacies to report when they become subjects of regulatory actions by other states or the federal government.


Abby Goodnough reported from Boston, and Denise Grady from New York.



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Europe Likely to Be Harder on Google Over Search





PARIS — By some accounts, the United States let Google off the hook when it found that the technology giant had not abused its dominance in the Internet search market.







Yves Logghe/Associated Press

Joaquín Almunia has vowed to restore competition to the Internet search business in Europe.






Few expect the European antitrust watchdog to be as lenient.


The Federal Trade Commission ruled on Thursday that Google had not broken antitrust laws, after a 19-month inquiry into how it operated its search engine. But the European Commission, which is pursuing claims that the company rigs results to favor its own businesses, operates under a different standard.


The agreement with the American authorities, analysts and competition lawyers say, is unlikely to alter the demands of European regulators, led by the competition commissioner, Joaquín Almunia.


“We have taken note of the F.T.C. decision, but we don’t see that it has any direct implications for our investigation, for our discussions with Google, which are ongoing,” said Michael Jennings, a spokesman for the European Commission in Brussels.


Faced with nearly $4 billion in possible penalties and restrictions on its business in Europe, Google submitted proposals in July to remedy the concerns of the European Commission, which covered four areas. In its deal with the F.T.C., Google made concessions in two of those areas but was not required to do so in the rest.


A Google spokesman, Al Verney, declined to comment on the content of the company’s proposals to Mr. Almunia but said the company would “continue to work cooperatively with the European Commission.”


The Google case underscores a basic difference between the approaches to monopoly power in Europe and the United States. American antitrust regulators tend to focus on whether a company’s dominance harms consumers; the European system seeks to keep competitors in the market. Mr. Almunia has vowed to restore competition to the Internet search business in Europe.


“History shows that competition law is applied to monopoly power more stringently in the E.U. than in the U.S.,” said Jacques Lafitte, head of the competition practice at Avisa Partners, a consultancy in Brussels, who brought one of the original complaints against Google. “Whether the E.U. is right or not is a different question.”


Mr. Lafitte has some expertise in the matter. He is the former head of corporate affairs at Microsoft Europe and watched as that company did battle with regulators over its dominant computer operating system. Microsoft won a lenient settlement with the Justice Department in October 2001, he said, only to be slapped with nearly 1.6 billion euros, or $2.1 billion, in fines and penalties from the European Union from 2004 to 2008.


Google learned from Microsoft’s mistakes. It worked with authorities in both the United States and Europe to reach a deal rather than fight a desperate legal action. That approach appears to have paid off: last month, after a meeting with Eric E. Schmidt, Google’s executive chairman, Mr. Almunia said that the sides had “substantially reduced our differences.”


In its deal with the F.T.C., Google agreed to make concessions in two areas that concerned European regulators. In one, it will allow rivals to opt out of allowing Google to “scrape,” or copy, text from their sites. Google will probably offer the same concession to European authorities.


But in a second area of European concern — whether Google deliberately favors its own content in search results — the F.T.C. did not require changes.


Mr. Almunia has also demanded that Google put fewer restrictions on advertising distribution deals, an area his American counterparts did not explore.


The company will make a detailed set of proposed remedies in January. The European Commission will then allow the complainants to review them in a period of what is known as “market testing.” Antitrust lawyers say a final denouement could arrive by spring, depending on how hostile Google’s rivals are to the proposed remedies.


FairSearch, an alliance of Google rivals, accused the F.T.C. of rushing its decision. It said in a statement that closing the F.T.C. investigation “with only voluntary commitments from Google is disappointing and premature.”


The outcome in Europe may also be affected by Google’s dominance there. Google’s share of the United States search market was 67 percent in November, according to comScore, a digital analytics company, while its share in Europe was 83 percent that month.


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Letter from Europe: Ghetto Survivors Fight for Recognition and Pensions







BERLIN — Uri Chanoch has a gift for plain speaking, which brought a welcome reprieve during a highly technical and legalistic meeting of the German Parliament’s labor and social affairs committee last month.




The federal lawmakers had invited pension experts, lawyers, historians and Holocaust survivors to discuss one of the chapters of World War II that Germany has yet to close: how to pay pensions to Jews who worked voluntarily in the ghettos.


That may seem a strange topic to be discussing so long after 1945. The German government has already compensated Jews who were forced to work in the ghettos. But until 2002, there was no payment system for Jews who chose to work.


“We wanted to work. It meant surviving,” Mr. Chanoch, 84, a board member of the Center of Organizations of Holocaust Survivors in Israel, told the committee.


As a young boy, Mr. Chanoch worked in the ghetto of Kaunas, Lithuania, after the city’s thriving community of 40,000 Jews was rounded up in August 1941. “We got paid for our work. We also paid into the insurance funds,” he said in an interview. “That money is our money.”


Mr. Chanoch was later deported to the Stutthof concentration camp in Poland and then to Dachau. His grandparents, parents and sister were killed in Auschwitz and Stutthof.


“For me and every other ghetto survivor, recognition for the work we did in the ghetto would mean that this aspect of history has also finally been acknowledged and will be taken into account in both compensation and social legislation,” Mr. Chanoch told the committee.


In 2002, the Bundestag, or German Parliament, retroactively passed a law: “German Pensions for Work in the Ghettos.” The Federal Social Court, which is responsible for insurance claims, ruled in 1997 that work carried out in the ghettos could be recognized as employment time under German pension laws.


At the time, the government believed the payments would not be exorbitant. It estimated that about 700 of the ghetto workers would apply for pensions. This was despite the fact that there had been more than 1,150 ghettos, according to Stephan Lehnstaedt, a historian at the German Historical Institute in Warsaw who participated in the committee hearing. The Warsaw ghetto alone held more than half a million Jews.


Once the 2002 law was enacted, 70,000 survivors applied to receive pensions. The pension insurance funds were taken aback because of the costs involved. After assessments, they rejected more than 90 percent of the applications.


The pension insurance funds argued that those who had worked in the ghettos were forced laborers. They were therefore entitled to compensation to be paid by the Finance Ministry, not from the public pension fund.


As for boys barely in their teens, like Mr. Chanoch, they were considered too young to have held proper jobs. “The pension fund experts did not understand the historical conditions of life in the ghetto,” Mr. Lehnstaedt said at the committee hearing.


In 2009, after criticism by Israel and Jewish organizations over the rejection of so many claimants, the German Federal Social Court relaxed the restrictive measures. Rejected cases were reconsidered.


But the court’s ruling did not end the matter. The National Pension Board announced that payments under review would be backdated by four years, the statutory limit, to 2005. Germany’s Federal Social Court backed that position.


In the meantime, thousands of elderly claimants had died, according to the Conference on Jewish Material Claims Against Germany, or Claims Conference. The conference represents world Jewry in negotiating compensation and restitution for victims of Nazi persecution and their heirs.


Jan-Robert von Renesse, one of the German judges who attended the committee hearing, said it was shameful how the pension funds and courts had acted.


“What has been established is that in dealing with the ghetto pension issue, the National Pension Fund misjudged both real and legal conditions of the ghetto — culpably,” he said.


Even after the hearing last month, nothing was decided. The opposition Social Democrats, Green and Left parties said they wanted payments to be backdated to 1997. Chancellor Angela Merkel’s government coalition is more cautious, fearing new legal entanglements and lawsuits. All acknowledged, however, that somehow this ignominious chapter of German history needs to be closed.


On his return to Israel after the hearing, Mr. Chanoch was cautiously optimistic that some compromise could be found.


“All I ask,” he said, “is that we get old gracefully.”


Judy Dempsey is Editor in Chief, Strategic Europe for Carnegie Europe. (www.carnegieeurope.eu)


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New York Comptroller Sues Qualcomm for Data on Political Giving





The New York State comptroller, seeking to force greater public disclosure of corporate political spending, has sued Qualcomm, demanding to view internal records of political expenditures by the company, one of the country’s largest makers of computer chips for mobile devices.




The suit by the comptroller, Thomas P. DiNapoli, was a novel and potentially significant tactic in the running battle over corporate political spending in the post-Citizens United era, after a 2010 Supreme Court ruling that opened the door to unlimited political spending by corporations and unions.


Qualcomm’s founder, the billionaire Irwin Jacobs, and some of the company’s top executives are major donors to the Democratic Party: Mr. Jacobs contributed at least $2.3 million to three Democratic “super PACs,” including one dedicated to re-electing President Obama, last year.


Mr. DiNapoli, a Democrat, is also seeking to determine whether Qualcomm made corporate contributions to tax-exempt groups and trade associations that are not required to disclose their donors. Such groups poured hundreds of millions of dollars into the 2012 election, including money from large corporations seeking to avoid negative publicity or customer outcries.


A Qualcomm spokeswoman would not comment on whether the company had contributed to tax-exempt groups.


In a statement, Donald J. Rosenberg, Qualcomm’s general counsel, said the company was surprised by the lawsuit. “Qualcomm is well regarded for its open and transparent culture and fully complies with all local, state and federal laws governing political activity and the disclosure of that activity — and the lawsuit does not suggest otherwise,” Mr. Rosenberg said.


He said that Mr. DiNapoli “knows from conversations we have had in the past Qualcomm was already in the process of enhancing our shareholders’ ability to access Qualcomm’s political contributions on our Web site.”


Mr. DiNapoli is asserting the right to access Qualcomm’s spending records as the sole trustee of the New York State pension fund, which is a major shareholder in Qualcomm and one of the largest public institutional investors in the country. He maintains that the contributions could pose financial risks for shareholders.


Qualcomm is based in California but registered in Delaware, whose law gives shareholders the right under some circumstances to inspect a company’s books.


Mr. DiNapoli filed the lawsuit on Wednesday in a state court in Delaware after Qualcomm rebuffed requests by the New York pension fund and other institutional investors to disclose its political spending. If successful, he could establish a precedent giving shareholders the right to inspect contribution records.


“We’ve done the petitions and the letter-writing,” Mr. DiNapoli said in an interview. “We’ve done shareholder resolutions. Rather than continue to be rebuffed, we’re taking this new approach.”


Mr. DiNapoli’s suit is one of a wave of actions by pension funds and other institutional investors attempting to limit or force disclosure of corporate political spending in the wake of the Citizens United ruling. More than 100 shareholder resolutions concerning corporate political contributions were filed last year, according to Institutional Shareholder Services, which tracks proxy actions.


“We believe that shareholders have a right to know how money is being spent in the political arena,” said Amy Borrus, deputy director of the Council of Institutional Investors, an association of pension funds, endowments and foundations. “Boards need to step up to the plate and ensure that political checks that a company writes enhance, not erode, shareholder value.”


Many of the new efforts to force disclosure of contributions are emerging in New York, where some of the nation’s biggest corporations and charities do business, giving state and local elected officials the leverage to pursue political spending that has national implications.


The New York State attorney general, Eric T. Schneiderman, has spent several months investigating political spending by politically active tax-exempt groups that raise money in New York; last month, he issued a regulation that will force many of them to disclose their donors. Bill de Blasio, the New York City public advocate, who is a trustee of the city’s pension fund, has secured pledges from a number of large businesses that they will not spend money on campaigns.


Mr. DiNapoli’s suit, filed in Delaware Chancery Court, is known as a books-and-records demand. While such demands are typically used to try to prove mismanagement, waste or wrongdoing by corporate executives or board members, the comptroller’s complaint asserts that political spending creates financial risk for companies and that shareholders should be entitled to be able to evaluate those risks.


“It really gets to the heart of the question of transparency,” Mr. DiNapoli said. “How is a corporation spending money in the political process and how does that impact shareholder value? The first step in evaluating that from a shareholder perspective is to find out where the money is being spent.”


Harvey Pitt, who was chairman of the Securities and Exchange Commission under President George W. Bush, said he believed that Mr. DiNapoli’s suit was consistent with the purpose of the Delaware law that permits such records demands.


“I don’t want to predict where the Delaware court will come out, but where you have a very large shareholder and something related directly to corporate governance, it seems to me a pretty compelling circumstance” under the state law, Mr. Pitt said.


Qualcomm scores relatively low on the CPA-Zicklin Index, a ranking of corporations’ policies on political transparency, which was created by the Center for Political Accountability, a nonprofit watchdog organization.


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Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



Read More..

Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



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Deepwater Horizon Owner Settles With U.S. Over Oil Spill in Gulf of Mexico





The driller whose floating Deepwater Horizon oil rig blew out in 2010, causing a massive oil spill, has agreed to settle civil and criminal claims with the federal government for $1.4 billion, the Justice Department announced Thursday.




The Deepwater Horizon exploded, burned and sank in April 2010. Eleven men were killed and millions of gallons of oil flowed into the Gulf of Mexico and fouled the shores of coastal states. The well, known as Macondo, was owned by British oil giant BP, which settled its own criminal charges and some of its civil charges in November for $4.5 billion.


While this settlement resolves the government’s claims against Transocean, that company and the others involved in the spill still face the sprawling, multistate civil case, which is scheduled to begin in February in New Orleans. In a deal filed in federal court in New Orleans, a subsidiary, Transocean Deepwater, agreed to one criminal misdemeanor violation of the Clean Water Act and will pay a fine of $100 million. Over the next five years, the company will pay civil penalties of $1 billion, the largest ever under the act.


As part of the criminal settlement, Transocean also agreed to pay the National Academy of Sciences and the National Fish and Wildlife Foundation $150 million each. Those funds will be applied to oil spill prevention and response in the Gulf of Mexico and natural resource restoration projects. The agreement will be subject to public comment and court approval. The company agreed to five years of monitoring of its drilling practices and improved safety measures.


In a statement, Transocean Ltd., the Switzerland-based parent of the rig owner, said that the company thought these were “important agreements” and called them a “positive step forward” that were “in the best interest of its shareholders and employees.” Of the 11 men killed on the rig, the company said, “their families continue to be in the thoughts and prayers of all of us at Transocean.”


The company announced in September that it had set an “estimated loss contingency” of $1.5 billion against the Justice Department’s claims.


Shares of Transocean Ltd. rose nearly 3 percent on the news, to close at $49.20.


In a statement, Lanny A. Breuer, assistant attorney general for the Justice Department’s Criminal Division, suggested that Transocean had played a subservient and lesser role in the disaster to that of BP: “Transocean’s rig crew accepted the direction of BP well site leaders to proceed in the face of clear danger signs — at a tragic cost to many of them.” He said that the $1.4 billion “appropriately reflects its role in the Deepwater Horizon disaster.”


Under a law passed last year, 80 percent of the penalty will be applied to projects for restoring the environment and economies of gulf states.


That fact was applauded by a coalition of Gulf Coast restoration groups, including the Environmental Defense Fund and the National Audubon Society. A joint statement called this “a great day for the gulf environment and the communities that rely on a healthy ecosystem for their livelihoods.”


Still, the penalty struck some experts in environmental law as somewhat light. David M. Uhlmann, who headed the Justice Department’s environmental crimes section from 2000 to 2007, praised the size of the civil settlement, which he said “reflects the scope of the gulf oil spill tragedy.”


He argued, however, that the criminal penalty should have been at least as onerous, “given Transocean’s numerous failures to drill in a safe manner, which cost 11 workers their lives and billions of dollars in damages to communities along the gulf.” The settlement, he said, should have included seaman’s manslaughter charges, which were part of the BP settlement.


As for the company’s role in following the lead of BP, he said, “following orders is not a defense to criminal charges.”


At the Environmental Protection Agency, Cynthia Giles, assistant administrator for the office of enforcement and compliance assurance, called the settlement “an important step” toward holding Transocean and others involved in the spill accountable. “E.P.A. will continue to work with D.O.J. and its federal partners to vigorously pursue the government’s claims against all responsible parties and ensure that we are taking every possible step to restore and protect the Gulf Coast ecosystem,” she said.


The multistate trial over claims in the Deepwater Horizon cases that have not been settled are scheduled to begin in February. Stephen J. Herman and James P. Roy, lawyers who represent the steering committee of plaintiffs in the cases, said that Thursday’s settlement did not change the case, and that the plaintiffs thought that BP, Transocean and Halliburton “will be found grossly negligent” at trial.


BP continued its longstanding argument that the accident, in the words of the spokesman Geoff Morrell, “resulted from multiple causes, involving multiple parties,” and that other companies had to shoulder their share of the blame.


Transocean, Mr. Morrell said in a statement, “is finally starting, more than two-and-a-half years after the accident, to do its part for the Gulf Coast.” He then turned his attention to the other major contractor on the well, and said, “Unfortunately, Halliburton continues to deny its significant role in the accident, including its failure to adequately cement and monitor the well.”


Beverly Blohm Stafford, a Halliburton spokeswoman, said that the company “remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP’s specifications for its well construction plan and instructions,” and so Halliburton, she said was protected from liability through indemnity provisions of its drilling contract.


“We continue to believe that we have substantial legal arguments and defenses against any liability and that BP’s indemnity obligation protects us,” she said. “Accordingly we will maintain our approach of taking all proper actions to protect our interests.”


This article has been revised to reflect the following correction:

Correction: January 3, 2013

An earlier version of this story misstated the size of the spill. It was not the nation’s biggest oil spill.



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India Ink: Accused in Delhi Gang Rape Case Expected in Court

A scrum of television reporters and a handful of protesters gathered outside the District Court complex in Saket, Delhi, Thursday morning, awaiting a glimpse of the six men accused in a gang rape that ended in the death of a 23-year-old woman last month.

Delhi police are expected to file charges against the accused today, including a charge of murder, which could carry the death penalty if the men are convicted. The police charges, in the form of a document expected to be hundreds of pages long, will be reviewed by Delhi High Court before they are submitted to a magistrate in the Saket court, the neighborhood where the woman was picked up by a private bus and raped.

Court officers said they expected the charge sheet to reach the Saket court by about 2 p.m. In ordinary court procedures in India, the accused would be present when charges are filed in court.

Despite widespread national and international interest in the case, there is no press conference planned on the issue Thursday, a Delhi Police spokesman said. The charge sheet itself is not likely to be made public because of confidential details the sheet contains about the case, he said.

Outside the courthouse, television cameramen scrambled to find a vantage point over a locked courthouse gate for a shot of anyone coming in and out of the building. A lack of official information about what was happening meant that rumors flew fast. The men would not actually be brought to court today, several television reporters said with certainty. Others said they would surely be produced.

So far, no defense attorney has been named for the six men, lawyers and court officers in Saket said.

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