[[Links]] OECD defines harmful tax competition; smartphone market share higher than tablets

Today’s links are based on what I have been reading online between Sunday, March 22 and yesterday, Friday, March 27.

• OECD and BEPS: defending the tax cartel?

The OECD defines “harmful tax competition” as a particular tax practice that is so substantial as to conclude that it is poaching on other countries’ tax base. But the writer states that not one evidence of this harm has been found by the OECD. Yet, turning the labeling around, one could find evidence, and much for “harmful international business competition through tax incentives that is substantial so as to poach on other countries’ tax base.”

• Predatory Pricing Doesn't Work But We Still Don't Like Cartels

Predatory pricing is an anticompetitive behavior that fosters monopoly. The author argues that predatory pricing should be encouraged in the Australian Iron ore industry for the following reasons: it makes goods cheaper for consumers since iron ore mines will be subsidizing production to drive away competitors, the future incentive to raise prices when a monopoly or cartel has been established might not cover the cost of subsidies for the mines and by the way, the iron ore industry is a contestable market – the news that an established cartel is raising prices is enough to attract companies to the industry like flies to bees. All well and good. He fails to recognize that cartels once established enhances corruptive practices though lobbies.

• Kraft Foods Group (KRFT) Stock Continues Rally After Heinz Merger Announcement

The two companies, Kraft foods and Heinz merged to increase customer base by consolidating their shared advantages in selling differentiated products. Kraft and Heinz are in the food packaging industry. The market has seems to think this is a good deal. Shares of the merged companies are higher by 5.01% to $88.62

• Smartphones seize market share as tablet sales slow and PCs struggle

The combined total market of smartphones, tablets plus 2-in-1s, and PCs is set to grow from 1.8 billion units in 2014 to 2.5 billion units in 2019. If asked to own just one connected device, the smartphone is the clear choice. That's a recent survey report.