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Microsoft Fined Another $1.35 Billion by EU

Microsoft Fined Another $1.35 Billion by EU

by , 11:45 AM EST, February 27th, 2008

The European Competition Commission of the European Union announced Wednesday that it had fined Microsoft another €899 million (US$1.35 billion) for failing to comply with a 2004 antitrust ruling. That ruling compelled Microsoft to allow its competitors access to the Windows platform, and the EU found that the company was overcharging competitors for patent licenses needed for that access.

The fines are on top of earlier fines stemming from the same antitrust case against Microsoft, with earlier fines adding up to some $1.17 billion. According to a Forbes report, today's fines from Commissioner Neelie Kroes are a retroactive fine for non-compliance by Microsoft prior to October 22nd, 2007, and are not related to Big Redmond's announcement last week of a new kinder, gentler Microsoft that was embracing openness and interoperability.

"I hope that today's decision closes a dark chapter in Microsoft's record of non-compliance," Ms. Kroes said in a press conference in Brussels on Wednesday morning. She added that she hoped the two parties could "just close this dark chapter of our relationship."

The EU has been diligent in investigating Microsoft's business practices in Europe, and in addition to this case from 2004, two new probes have been launched in recent months looking at other aspects of the company's business practices.

In contrast, the U.S. punted on a huge antitrust win against Microsoft when the Bush administration took over the prosecution side of Microsoft's appeal of that ruling, which found the company guilty of being a predatory monopolist as it related to the Web browser market. With the for-profit Web browser market all but gone, the resulting settlement amounted to little more than a slap on the wrist.

Today's fine from the EU is the largest such fine leveled against any company in the history of the organization. While Microsoft can appeal the fine, Forbes reported that the company will likely pay it.

In her press conference, Ms. Kroes added, "Microsoft was the first company in fifty years of EU competition policy that the Commission has had to fine for failure to comply with an antitrust decision."

Observer Comments

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Close Name:tuscmat Posts: 35 Joined: 06 May 2004
Subject: Won't help

This won't stop them until the fines get really big or Ballmer really turns into a monkey. They don't care enough yet.

Close Name:gopher Posts: 291 Joined: 28 Mar 2002
Subject: EU != 50 years!

Either someone misheard her quote, or they didn't write it down right. The EU has only existed for 15 to 18 years depending on which treaty you consider ratifying it.
Something fishy is going on here.

Regardless it doesn't excuse Microsoft from keeping their DRM only on the Windows platform when it advertises interoperability to public sector firms.

Close Name:Guest
Subject: EU == 50 years

Last year we (the EU) celebrated 50 years of Roman Treaties 1957 is seen by most as the birthday of the EU, even if the name is official only since 1992 (Maastricht Treaty) and the Montan Union way founded well before that in 1951.
It's not fishy at all - it just depends on your point of view, and we have a lot of POVs here in Europe

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