EU says its Google case not affected by U.S. ruling

BRUSSELS (Reuters) - A decision by U.S. regulators to end a probe into whether Google Inc hurt rivals by manipulating internet searches will not affect the European Union's examination of the company.

"We have taken note of the FTC (Federal Trade Commission) 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, the EU executive.

U.S. regulators on Thursday ended their investigation into the giant internet company, which runs the world's most popular search engine.

Other internet companies, such as Microsoft Corp, had complained about Google tweaking its search results to give prominence to its own products. But the FTC said there was not enough evidence to pursue a big search-bias case.

The European Commission has for the past two years been investigating complaints against Google, including claims that it unfairly favored its own services in its search results.

Google presented informal settlement proposals to the Commission in July. On December 18 the Commission gave the company a month to come up with detailed proposals to resolve the investigation.

If it fails to address the complaints and is found guilty, Google could eventually be fined up to 10 percent of its revenue - a fine of up to $4 billion.

(Reporting By Ethan Bilby; Editing by Sebastian Moffett and David Goodman)

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Chiefs, GM Pioli part ways after 4 seasons in KC

KANSAS CITY, Mo. (AP) — Scott Pioli is out as general manager of the Kansas City Chiefs, who have been negotiating the past two days with Andy Reid to become their next coach.

Pioli and the team "mutually parted ways," the Chiefs said in a statement Friday. The decision came after four tumultuous seasons marked by poor draft choices, ineffective free-agent moves, failed coaching hires and a growing fan rebellion.

"I truly apologize for not getting the job done," Pioli said.

The Chiefs fired coach Romeo Crennel on Monday after finishing 2-14, matching the worst record in their 53-year history. Chiefs chairman Clark Hunt said other changes could be made, and indicated that Pioli's future could be determined by their next coach.

A person familiar with the situation told The Associated Press the team is nearing a deal with Reid, who was fired after 14 seasons with the Philadelphia Eagles. The person spoke to AP on condition of anonymity because negotiations were ongoing. It is believed that Reid would prefer to work with his own general manager.

"After several productive conversations, we made the difficult decision to part ways with Scott Pioli and allow him to pursue other opportunities," Hunt said in a statement Friday.

"This was a difficult decision for Scott as well," Hunt said. "He has a great deal of appreciation for the history of this franchise, for our players, coaches and employees, and especially our great fans."

Kansas City will have the No. 1 pick in the NFL draft, and with five players voted to the Pro Bowl, there are certainly pieces in place for the Chiefs to make rapid improvement.

But most of those Pro Bowl players were drafted by Pioli's predecessor, Carl Peterson. The former Patriots executive struggled to find impact talent, particularly at quarterback, while cycling through coaches and fostering a climate of dread within the entire organization.

Numerous longtime staff members were fired upon Pioli's arrival, and his inability to connect with fans resulted in unrest unlike anything the franchise has known. Some of them even paid for banners to be towed behind planes before home games asking that he be fired.

Those fans finally got their wish.

The biggest reason ultimately wasn't the banners and posters, but by the performance of the Chiefs. And that was a reflection of the roster Pioli assembled, one that looked good on paper but not on the field.

Things were no better away from the field, either.

On Dec. 1, linebacker Jovan Belcher shot the mother of his 3-month-old daughter, Kasandra Perkins, at a home not far from Arrowhead Stadium. He then drove to the team's practice facility and was confronted by Pioli, Crennel and defensive coordinator Gary Gibbs.

After thanking the three of them for giving him a chance in the NFL, Belcher turned around in the parking lot, kneeled down and shot himself in the head.

Pioli hasn't spoken publicly since then but issued a statement Friday in which he thanked the organization for giving him an opportunity to be its GM.

"The bottom line is that I did not accomplish all of what I set out to do," Pioli said. "To the Hunt family — to the great fans of the Kansas City Chiefs — to the players, all employees and alumni, I truly apologize for not getting the job done."

Pioli often spoke of putting together "the right 53," but he routinely failed to do so.

His biggest move upon being hired was trading for Patriots backup Matt Cassel and then giving him a $63 million, six-year deal. Cassel went to the Pro Bowl in 2010, when the Chiefs won a surprising AFC West title, but he struggled so mightily that he was benched this season.

Many of Pioli's moves in free agency also backfired.

Tight end Kevin Boss sustained a season-ending head injury in Week 2, running back Peyton Hillis was a shadow of his former self, right tackle Eric Winston got into a messy situation by calling out Chiefs fans during an early season loss, and cornerback Stanford Routt was cut under mysterious circumstances despite signing an $18 million, three-year contract.

One of his biggest shortcomings was in the draft.

He wasted the third overall pick in 2009 on defensive end Tyson Jackson, who has struggled to become an every-down player. The only other player who has made a contribution from Pioli's first draft has been kicker Ryan Succop, their seventh-round selection.

Pioli fared better in 2010, when he nabbed Pro Bowl safety Eric Berry in the first round, but the past two years have been a disappointment. Wide receiver Jon Baldwin, his first-round pick in 2011, has barely made an impact, and defensive tackle Dontari Poe — the 11th overall pick last April — failed to make the kind of impression the Chiefs had hoped.

Pioli didn't fare much better when it came to coaches.

He fired Herm Edwards soon after he was hired and chose Todd Haley as the replacement, but their relationship was strained from the start. Haley was fired last December and Crennel made the interim coach, and then Pioli made the move permanent a few weeks after the season ended.

While beloved and respected by his players, Crennel struggled in his second stint as a head coach, and was dismissed after a 2-14 finish — only the third time in team history the Chiefs failed to win at least three games in a season.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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‘Lincoln,’ ‘Argo’ earn Writers Guild nominations

LOS ANGELES (AP) — “Lincoln” and “Zero Dark Thirty” are adding to their front-runner status for Hollywood’s awards season.

The two dramas earned nominations from the Writers Guild on Friday for outstanding screen writing.

“Lincoln” is up for adapted screenplay, along with “Argo,” ”Silver Linings Playbook,” ”Life of Pi” and “The Perks of Being a Wallflower.”

“Zero Dark Thirty” was nominated for original screenplay, along with “Flight,” ”Looper,” ”The Master” and “Moonrise Kingdom.”

In the documentary category, “The Central Park Five,” ”The Invisible War,” ”Mea Maxima Culpa, “West of Memphis,” ”We Are Legion: The Story of the Hacktivists,” and “Searching for Sugar Man” earned nominations.

Winners will be announced during simultaneous ceremonies in New York and Los Angeles on Feb. 17.

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Online:

www.wga.org

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FDA proposes sweeping new food safety rules

WASHINGTON (AP) — The Food and Drug Administration on Friday proposed the most sweeping food safety rules in decades, requiring farmers and food companies to be more vigilant in the wake of deadly outbreaks in peanuts, cantaloupe and leafy greens.

The long-overdue regulations are aimed at reducing the estimated 3,000 deaths a year from foodborne illness. Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the Centers for Disease Control. The actual number of those sickened is likely much higher.

The FDA's proposed rules would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.

Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.

In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.

Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress on those safety efforts and explain to the FDA how they would correct them.

"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.

The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.

The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.

The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.

Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.

In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."

The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.

Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.

"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.

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'McDreamy' says he beat Starbucks for coffee chain

SEATTLE (AP) — "Grey's Anatomy" star Patrick Dempsey may be the real "McSteamy."

The actor, who was dubbed "McDreamy" as a star of the hospital drama while his co-star affectionately was called "McSteamy," won a bankruptcy auction to buy Tully's Coffee, a small coffee chain based in Seattle.

Among those Dempsey beat out is Tully's much bigger Seattle neighbor, Starbucks Corp., which wanted to convert the cafes to its own brand.

Dempsey, whose company Global Baristas LLC plans to keep the Tully's name, declared victory on the social media site Twitter with the message: "We met the green monster, looked her in the eye, and...SHE BLINKED! We got it! Thank you Seattle!

Then, in an interview on Friday, Dempsey said that as the underdog in Seattle, Tully's would need to find its identity.

"It's a much smaller chain that has a lot of potential that hasn't been given the proper care," he said.

But Starbucks is saying not so fast. The chain, which has 18,000 cafes worldwide, said in a statement that a final determination on the winning bid won't be made until a court hearing on Jan. 11. Starbucks said it's in a "back-up" position" to buy 25 of the 47 Tully's cafes, with another undisclosed bidder making an offer for the remainder.

The combined bids of Starbucks and the undisclosed bidder come to $10.6 million, above the $9.2 million Dempsey's company is offering to pay through his company. The other investors in Global Baristas aren't being disclosed.

Tully's Coffee, which has more than 500 employees and locations in Washington and California, filed for Chapter 11 bankruptcy protection in October, citing lease obligations and underperforming stores. TC Global Inc., its parent company, said in a release Friday that it was "encouraged and excited" about Dempsey's commitment to the chain.

Tully's President and CEO Scott Pearson called the deal a "great match" and that the goal is to make sure creditors get paid and to keep as many people employed as possible.

Dempsey said he planned to be very involved in the running of the company, adding that the immediate challenges were to address bookkeeping issues, staff morale and sprucing up the coffee shops. Once the business is stabilized, Dempsey said the long-term goal would be to take the chain national.

"We can pull this off. We just have to take steps that are slow and smart," he said. "I'm going to get behind the counter. I'm going to serve coffee...I'm going to give the company a boost of energy."

Although Dempsey lives in Los Angeles, he plans to spend more time in Seattle, the city where "Grey's Anatomy" is set in. Dempsey said he believed there is room in the city for Tully's and the much larger Starbucks; he noted there might be people who are rooting for the underdog.

"In a society where there are so many big corporations that swallow the little guy, we thought, let's not let this happen to this company," he said.

Dempsey made an appearance Friday morning at a Tully's near Pike Place Market, shaking hands with workers and greeting customers before visiting other stores. Several dozen people, mostly women, came into the store.

Patrease Estelle, 45, works nearby, and came in with a small group from her office.

"I will take whatever I can get. A photo, a hug, a 'hey, how you doing,' a wink," said Estelle, who got a picture and handshake with the actor.

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Blankinship reported from Seattle and Choi from New York.

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U.S. unemployment holds at 7.8%

CBS News business and economics correspondent Rebecca Jarvis talks to Norah O'Donnell and Anthony Mason about the final jobs report of 2012 to be released later today.

The pace of hiring by U.S. employers eased slightly in December, pointing to a lackluster pace of economic growth that was unable to make further inroads in the country's still high unemployment rate.

Payrolls outside the farming sector grew 155,000 last month, the Labor Department said on Friday. That was in line with analysts' expectations and slightly below the level for November.

Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to health care.

That should reinforce expectations that the economy will grow about 2 percent this year, unlikely to quickly bring down the unemployment rate or make the U.S. Federal Reserve rethink its easy-money policies, which have been propping up the recovery.

"It's not a booming economy, but it is growing," Jim O'Sullivan, an economist at High Frequency Economics in Valhalla, New York, said before the data was released.

The jobless rate held steady at 7.8 percent in December, down nearly a percentage point from a year earlier but still well above the average rate over the last 60 years of about 6 percent.

The Labor Department raised its estimate for the unemployment rate in November by a tenth of a point to 7.8 percent, citing a slight change in the labor market's seasonal swings.

Most economists expect the U.S. economy will be held back by tax hikes this year as well as by weak spending by households and businesses, which are still trying to reduce their debt burdens.

Friday's data nonetheless gave signals of growing momentum in the labor market's recovery from the 2007-09 recession. Many economists had expected December's payroll gains to be padded by one-time factors like the recovery from a mammoth storm that hit the East Coast in late October.

The government had said last month the storm had no substantial impact on the November data, and many economists expected the government to recant by revising downward in Friday's report its estimate for payroll gains in November. Instead, the government revised its estimate for November payrolls upward by 15,000.

"There is some evidence that underlying jobs growth has improved," Paul Dales, an economist at Capital Economics in London, said before the report was released.

AUSTERITY'S BITE

Despite the signs of some momentum in hiring, a wave of government spending cuts due to begin around March loom over the economy.

Many economic forecasts assume the cuts - which would hit the military, education and other areas - will ultimately be pushed into next year as part of a deal sought by lawmakers to reduce gradually the government's debt burden.

Initially, the cuts were planned to have begun this month as part of a $600 billion austerity package that also included tax hikes. Hiring in December may have been slowed by uncertainty over the timing of the austerity, economists say.

Congress this week passed legislation to avoid most of the tax hikes and postpone the spending cuts.

Even with the last-minute deal to avoid much of the "fiscal cliff," most workers will see their take-home pay reduced this month as a two-year cut in payroll taxes expires.

That leaves the Fed's efforts to lower borrowing costs as the main program for stimulating the economy.

The Fed has kept interest rates near zero since 2008, and in September promised open-ended bond purchases to support lending further. On Thursday, however, minutes from the Fed's December policy review pointed to rising concerns over how the asset purchases will affect financial markets.

Analysts ahead of the report expected some of the strength in job creation in December would be due to the Fed's policies.

"Despite the end-of-year angst over the ‘fiscal cliff,' financial conditions remained supportive of job growth in December," economists at Nomura said in a note to clients earlier in the week.
 

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Family of slain auto shop owner: 'We are lost'

A longtime Southwest Side business owner was shot and killed during a robbery at his muffler shop; His family talked with CBS's Susanna Song. (Source: CBS Chicago)

After Michael Kozel was shot in a hold-up robbery at his Gage Park muffler shop Wednesday, he reached out to his son, just hours before his death.

"'They shot me in the back,'" Michael Kozel Jr., recalled his father's last words to him.

Kozel said he believes his dad reached out to him at about 5:30 p.m. even before he had an ambulance called. When the man's only son got the call, he raced over from his job and found his father being treated by paramedics inside an ambulance.

Kozel, 57, was pronounced dead at John H. Stroger Jr. Hospital of Cook County at 9:09 p.m.

Thursday, Kozel's family remembered him as a compassionate man who turned his love for cars into a living that supported his tight-knit family.

Two men entered Kozel's business, Independent Mufflers Inc. in the 5600 block of South Western Avenue, about 5:20 p.m. and demanded money, police said. Kozel tried to flee but was shot in the back once as he tried to run away, authorities said.

An employee at his shop said Thursday that Kozel was with two employees at the time of the hold-up, one of whom was robbed.

He was the fifth homicide in Chicago in the first two days of 2013, according to the Cook County medical examiner's office.

Kozel's family gathered at their South Side residence on the 2700 block of West Siepp Street in the Wrightwood neighborhood Thursday morning, tearful and visibly shaken by the loss of their patriarch.

His daughter, Amber Kozel, 30, said her father owned the muffler shop for more than 20 years. He had owned other various businesses in the automotive industry throughout his career, she said.

"He's been in the business for 35 years -- it all started with a love for cars," Amber Kozel said.

"He was in the business because he was a people person," said Kozel's wife, Antonia Kozel, 55.

Kozel grew up off of 26th Street and lived his whole life in Chicago, family said.

Amber Kozel said her father was often mistaken for Santa Claus by children because of his "big belly and big beard."

"Kids would stare at him awestruck," she said. "As in 'What should I say to Santa?'"

Antonia Kozel said her husband was a loving and giving family man.

"He would give anyone the shirt off his back," she said. "He didn't deserve this."

"Everything was taken care of for us as kids," Amber Kozel said.

Kozel's family said he was hard-working and spent long hours at the muffler shop -- usually 10-hour days, Monday through Saturday.

He had regular, loyal clientele at the muffler shop, his family said.

Kozel's son said his father was a carefree man.

While the area sees break-ins regularly, Kozel's 31-year-old son said the muffler shop was "like Fort Knox" when it was all locked up.

The shop had been robbed once before a few years ago, he said, and his father gave up the money.

Kozel leaves behind three grandchildren -- an 8-year-old boy, a 7-year-old girl and a 2-year-old boy, family said.

The family joined Kozel at the hospital Wednesday night before he died.

"We are lost," Kozel's son said.

Family members later returned to the shop in a tan SUV because Kozel's widow wanted to return to the site of the shooting.

"I think she just wants to be here," said Angelica Kozel, a family member, referring to Kozel's widow.

Manny Serna, 27, and two other men used thick white paint to cover graffiti on Thursday morning, which previously had been painted onto the muffler shop's garage door.

While the graffiti had been there for some time before Kozel's shooting, Serna said it was "out of respect" that they painted over the black spray paint. It was Michael Kozel's idea, Serna said.

"It's the least I can do," Serna said. "I was a manager at this muffler shop for 10 years and recently went my own way. But he was a great man."

Serna said he was a long-time friend of the family.

Serna pointed to a bullet hole in the garage door.

"See that hole? That's the last of him," Serna said.

Serna said Kozel was shot inside the muffler shop. The bullet that killed his former boss then traveled through the garage door, he said.

Another employee, Mike Shaw, said he had worked for Kozel for about six months and remembered him as a man who got along with everyone.

Shaw, 52, called Kozel a "good guy" and enjoyed working for him.

Kozel was with two employees at the time of the hold-up, said Shaw. He said one of the employees was also robbed at gunpoint.

Shaw said he lived in the Gage Park community and said he never felt unsafe.

"Today had been rough on everybody," said Shaw. "I don't think [it's] going to re-open anytime soon."

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FTC ends long Google probe with mild reprimand

WASHINGTON (Reuters) - U.S. regulators on Thursday closed a long-running investigation of Google with a relatively mild agreement that is likely to disappoint rivals and critics of the Web search giant.

Under the agreement, Google agreed to end the practice of "scraping" reviews and other data from rivals' websites for its own products, and to allow advertisers to export data to independently evaluate advertising campaigns, the Federal Trade Commission said.

FTC Chairman Jon Leibowitz said Google also agreed to license standard patents on "fair, reasonable and non-discriminatory terms."

At a press conference, Leibowitz said that the Commission had scoured through some 9 million pages of documents and taken sworn testimony from key Google executives on the way to resolving its investigation in a "sensible" fashion.

"This was an incredibly thorough and careful investigation by the Commission, and the outcome is a strong and enforceable set of agreements," he said.

The FTC defended the itself from likely criticism that it had gone too soft on Google.

Reuters reported in December that Google's critics, anticipating a weak conclusion to the FTC's investigation, may be ready to take their grievances to the Justice Department.

"Even though people would like us to bring a big search bias case, the facts aren't there," Leibowitz said, adding that it was "mistaken" for Google's critics to think that criticizing the FTC's deliberations might benefit them in other jurisdictions.

(Reporting by Diane Bartz, writing by Ros Krasny; editing by John Wallace and Nick Zieminski)

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NHL, union resume talks in hopes to save season

NEW YORK (AP) — After a long night of talks, the NHL and the union returned to the bargaining table, but not for long.

The sides met at the league office Thursday about three hours later than scheduled. The players' association said it had been updating members on negotiations.

Players and union staff began arriving at NHL headquarters a little before 1 p.m. EST, although executive director Donald Fehr wasn't with them. The group left the building about an hour later but expected to return later in the day.

With the lockout in its 110th day, both sides understand the urgency to save a shortened season. They still have several key issues to work out — pensions and salary cap limits, among them.

Commissioner Gary Bettman has said that the league told the union a deal needs to be in place by next week so a 48-game season can begin Jan. 19. All games through Jan. 14 along with the All-Star game have been canceled, claiming more than 50 percent of the original schedule.

The sides met in small groups throughout the day Wednesday. They then held a full bargaining session with a federal mediator at night that lasted nearly five hours and didn't wrap up until about 1 a.m. Thursday.

The biggest detail to emerge from those talks was that Fehr is still the executive director of the players' association, which passed on its first chance to declare a disclaimer that would dissolve the union and turn it into a trade association.

Last month, players voted overwhelmingly to give its executive board the right to declare the disclaimer, but that permission expired at midnight Wednesday. The disclaimer would allow individual players to file antitrust lawsuits against the NHL. Fehr wouldn't address the issue, calling it an "internal matter."

"The word disclaimer has yet to be uttered to us by the players' association," Bettman said. "It's not that it gets filed anywhere with a court or the NLRB. When you disclaim interest as a union, you notify the other side. We have not been notified and it's never been discussed, so there has been no disclaimer."

The thought was that the union wouldn't take action Wednesday if it saw progress was being made. Neither side would characterize the talks or address what, if any, movement toward common ground was reached.

"There's been some progress but we're still apart on a number of issues," Bettman said. "As long as the process continues I am hopeful."

A deal can't be done without a resolution on pensions. Bettman called the pension plan a "very complicated issue." A small group meeting on the pension issue was held Wednesday morning before the players' association presented its offer.

"The number of variables and the number of issues that have to be addressed by people who carry the title actuary or pension lawyer are pretty numerous and it's pretty easy to get off track. That is something we understand is important to the players."

The union's proposal Wednesday makes four offers between the sides since the NHL restarted negotiations Thursday with a proposal. The league presented the players with a counteroffer Tuesday night in response to one the union made Monday.

Fehr believed an agreement on a players-funded pension had been reached before talks blew up in early December. That apparently wasn't the case, or the NHL has changed its offer regarding the pension in exchange for agreeing to other things the union wanted.

The salary-cap number for the second year of the deal — the 2013-14 season — hasn't been established, and it is another point of contention. The league is pushing for a $60 million cap, while the union wants it to be $65 million.

In return for the higher cap number players would be willing to forgo a cap on escrow.

"We talk about lots of things and we even had some philosophical discussions about why particular issues were important to each of us," Bettman said. "That is part of the process."

The NHL proposed in its first offer Thursday that pension contributions come out of the players' share of revenues, and $50 million of the league's make-whole payment of $300 million will be allocated and set aside to fund potential underfunding liabilities of the plan at the end of the collective bargaining agreement.

Last month, the NHL agreed to raise its make-whole offer of deferred payments from $211 million to $300 million as part of a proposed package that required the union to agree on three nonnegotiable points. Instead, the union accepted the raise in funds, but then made counterproposals on the issues the league stated had no wiggle room.

"As you might expect, the differences between us relate to the core economic issues which don't involve the share," Fehr said of hockey-related revenue, which likely will be split 50-50.

The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.

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Depardieu, in tax fight, gets Russian citizenship

MOSCOW (AP) — The Kremlin has cast Gerard Depardieu in one of the most surprising roles of his life — as a new Russian citizen.

The announcement Thursday that President Vladimir Putin has approved Depardieu‘s application for citizenship is almost a real-life analogue to the French actor’s 1990 comedy “Green Card,” in which his character enters into a sham marriage in order to work in the United States.

But in this version, taxes appear to be at the heart of the matter. Depardieu has waged a battle against a proposed super tax on millionaires in his native country.

French President Francois Hollande plans to raise the tax on earned income above €1 million ($ 1.3 million) to 75 percent from the current 41 percent, while Russia has a flat 13-percent tax rate.

A representative for the former Oscar nominee declined to say whether he had accepted the Russian offer.

Thursday was a holiday in Russia and officials from the Federal Tax Service and Federal Migration Service could not be reached for comment on whether the decision would require Depardieu to have a residence in Russia.

But it’s clearly an image buffer for Russia, calling attention to the country’s attractive tax regime and boosting Putin’s efforts to show that the economic chaos of the early post-Soviet period has passed.

“The distinctiveness of our tax system is poorly known about in the West. When they know about it, we can expect a massive migration of rich Europeans to Russia,” Deputy Prime Minister Dmitry Rogozin bragged on Twitter.

Others aren’t so sure.

Political analyst Pavel Svyatenkov told the state news agency RIA Novosti that the move was “very good, very high-quality PR for Russia” but he was didn’t think it would ignite a flood of new residents.

“I don’t expect a massive movement of rich people to here, for the reason that Russia remains a pretty poor country by Western measurements and here there are bigger problems with crime and corruption,” he said.

As Depardieu’s criticism of the proposed tax roiled his country, French Prime Minister Jean-Marc Ayrault called him “pathetic.”

Depardieu responded angrily in an open letter.

“I have never killed anyone, I don’t think I’ve been unworthy, I’ve paid €145 million ($ 190 million) in taxes over 45 years,” the 64-year-old actor wrote. “I will neither complain nor brag, but I refuse to be called ‘pathetic’.”

Depardieu said in the letter that he would surrender his passport and French social security card. In October, the mayor of a small Belgian border town announced that Depardieu had bought a house and set up legal residence there, a move that was slammed by Hollande’s newly-elected Socialist government.

Najat Vallaud-Belkacem, the French government spokeswoman, didn’t comment directly on Depardieu’s tax fight. But she drew a clear distinction between people who have personal or professional reasons to live abroad and “French citizens who proclaim loudly and clearly that they they’re exiling themselves for fiscal reasons.”

She said Putin’s offer “is an exclusive prerogative of the Russian chief of state.”

Depardieu has had increasingly high-profile ties with Russia.

Last October he visited Grozny, the capital of the Russian province of Chechnya, to celebrate the birthday of Chechen President Ramzan Kadyrov. And in 2011, he was in Russia’s Arkhangelsk region to play the lead role in the film “Rasputin.”

He is well known in the country, where he appears in an ad for Sovietsky Bank’s credit card and is prominently featured on the bank’s home page.

“You have to understand that Depardieu is a star in Russia,” Vladimir Fedorovski, a Russian writer living in France, told the Europe 1 network on Thursday. “There are crowds around Depardieu. He’s a symbol of France. He’s a huge ambassador of French culture.”

Depardieu has made more than 150 films and was nominated for an Academy Award for his role as Cyrano de Bergerac in the 1990 film of the same name.

The Kremlin statement gave no information on why Putin made the citizenship grant, but the Russian president had expressed sympathy with the actor in December, days after Depardieu reportedly said he was considering Russian citizenship.

“As we say, artists are easily offended and therefore I understand the feelings of Mr. Depardieu,” Putin said.

Although France’s highest court struck down the new tax on Dec. 29, the government has promised to resubmit the law in a slightly different form. On Wednesday, the French government estimated the court decision to overturn the tax would cost the country €210 million ($ 275 million) in 2013.

In an interview, Depardieu told the Sunday Parisien the court decision made no difference.

France’s debt burden is around 90 percent of national income — not far off levels that have caused problems elsewhere in the 17-country eurozone.

Depardieu is not the only high-profile Frenchman to object to the super tax. Bernard Arnault — chief of the luxury goods and fashion giant LVMH and worth an estimated $ 41 billion — has said he would leave for Belgium.

____

Hinnant contributed from Paris. Silvie Corbet also contributed from Paris.

Entertainment News Headlines – Yahoo! News

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