Microsoft Ordered to Pay $1.4bn to EU
by Patrick Steen on February 27, 2008 at 7:31 am
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
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on February 27, 2008 9:05 am
Kudos for EU having the balls to correct this. America’s kangaroo DOJ trial got nothing done on the matter. Make way for Linux, it is the future, it is now.
on February 27, 2008 2:26 pm
Actually, I think the EU is unreasonable. I wonder which company bought of the competition commissioner.
Let’s face it, what they are asking for is for MS to share their trade secrets! See a problem there…. That is like asking Coca Cola to share their secret recipe for making Coca Cola.
In addition, I see plenty of products that are compatible with MS proprietary technology. This is just EU trying to control the market or an attempt to stop US companies from growing bigger.