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An arbitration panel ruled against Salesforce.com, which was claiming rights for Forces.com.
The e-commerce site is making job cuts as it aims to reach profitability.
Force.com for Google App Engine enables developers to integrate data on Salesforce.com data with their App Engine for Java applications.
CEO Sridhar Vembu accuses Salesforce of freezing out Zoho as possible payback for rejection of earlier buyout bid.
Salesforce.com looks to make its developer platform a "peer with .Net and Java" with new user interface tools.