Microsoft has been fined a hefty amount for violating the sanctions originally placed on them back in 2004 for anti-competitive behavior. The original violation involved Microsoft failing to share crucial information with its rival software makers.

The company was originally fined a record 497 million Euros ($613m at the time) in 2004. The total fine due to be paid by the software giant now stands at 899 million Euros ($1.4bn).

In 2004 the Competition Commissioner, Mario Monti, insisted that Microsoft reveal secrets of its Windows software, which sits on 90% of the world’s PCs, to make it easier for rivals to design compatible products.

Even though the battle had already been warring for years, Microsoft appealed the ruling, claiming it was unaware it was in breach of EU law. Why should the company share all of its secrets with competitors? Microsoft cited the ruling as “unfair.”

The appeal was a hard fought battle in 2006 with the EU Commission and Microsoft disputing each other’s claims. Microsoft said the Commission’s decision was “excessive, arbitrary and unreasonable” and undermined a key part of Microsoft’s business model, in addition to removing the incentive for them to improve their software.

But the Commission warned that if Microsoft was left to its own devices it would use its dominance to further squeeze its rivals, removing their ability to launch new products for Windows.

The outcome was eagerly awaited, with two possible outcomes. If Microsoft won the appeal, the Commission’s credibility would be severely undermined. If Microsoft lost they would risk further fines from the Commission.

It was the latter outcome that arose today, almost 2 years later. Microsoft must pay a total of $1.4 billion to the EU.  Even though the fine is a record high for the Commission, surely this is a drop in the pond for the software giant.

Source: BBC News

Tags: EU, Microsoft, rival_software, sanctions, software_makers

• Left 4 Dead Preorder Demo Released
• Microsoft Business Practices 101: If You Can’t Beat Em’ — Buy Em’
• New Xbox 360 Bundle — Microsoft Confirms Holiday Release
• Microsoft warranty now covers E74 errors
• Never Use Microsoft Points Again
• Grinding Is So Last-Gen; Tales of Vesperia DLC Lets You Buy Level Ups
• It’s Official: Bungie Cuts the Cord - Leaves Master Chief Behind
• Rumor: Xbox Live Gold Members to Get Compensated For Down Time?