EU Fines Microsoft Record $1.35 Billion – News and Analysis by PC Magazine — This is just going to get worse. The EU are not the USA pushovers Microsoft is used to.
BRUSSELS – Microsoft was fined a record 899 million euros ($1.35 billion) by the European Commission on Wednesday for using high prices to discourage software competition in the latest sanction in their long-running battle.
The executive arm of the European Union said the U.S. software group defied a 2004 order from Brussels to provide the information on reasonable terms.
Microsoft has now been fined a total of 1.68 billion euros by the EU for abusing its 95 percent dominance of PC operating systems through Windows.
Its latest fine far exceeded the original and was the biggest ever imposed on a company.
“Microsoft was the first company in 50 years of EU competition policy that the Commission has had to fine for failure to comply with an antitrust decision,” Competition Commissioner Neelie Kroes said in a statement.
For years after the decision Microsoft said it was making every effort to comply with the Commission’s orders.
“Talk is cheap, flouting the rules is expensive,” Kroes said. “We don’t want talk and promises. We want compliance.”
Microsoft said in a statement the fines concerned “past issues” and it was now looking to the future.The Commission said in a landmark 2004 ruling, upheld by an EU court last year, that Microsoft had withheld needed interoperability information for “work group server” software.
Rival makers of work group servers, which operate printers and sign-ons for small office groups, saw their markets shrivel because Microsoft stopped providing information they needed to hook up to Windows office machines.
Even after the 2004 decision and a 497-million euro fine Microsoft dragged its feet, giving incomplete documentation and charging high royalties, the Commission said.
“I hope that today’s decision closes a dark chapter in Microsoft’s record of non-compliance with the Commission’s March 2004 decision,” Kroes said.
The latest decision picks up from where a 280.5 million euro fine for non-compliance left off, covering the period from June 21, 2006 until October 21, 2007. After losing a major court decision in September 2007, Microsoft capitulated.
Last week it promised to publish critical information so rival programs worked better with Windows.
>“We don’t want talk and promises. We want compliance.”
What’s the difference between government and organized crime?
I’d say, “I don’t know, either. Miserable, isn’t it?” but, in general, it’s clear that government produces more effective thugs.
OUCH!
This is a dumb question, I know, but what would happen if Microsoft simply refused to pay. After all, they’re an American corporation. What power does the EU have over them?
Also, what if other foreign governments get in the act? What if Tuvalu – population 11,992 – decides to impose a $5 billion fine on MS? What would stop Microsoft from having to pay them too?
Oh, so thats all the EU wants??? 1.5 billion and Microsoft get to crush OSX and Linux? Thats cheaper than simply buying them.
I expect Microsoft will tighten the thumb screws with their patent lawsuits now. Gonna be a dark time to be a Samba user. Expect near zero compatability in about 3 months.
The EU has the right to fine Microsoft because in Europe MS is incorporated under EU laws and has to follow EU antitrust decisions, much the same as it would if it were here in the US. Although I think the fine is a bit high, if they operate in EU territory they play by the EU’s rules, just as any other American corporation would have to.
Also in todays news… Microsoft rescinds all user licenses in EU and disables all software. EU closes.
so where does this 1.3 billion dollars go anyways? And isn’t that like a drop in the bucket for microshaft?
Everybody got sue happy i want in on the action too. Whos next Apple?
Damn, there goes the price of Vista. Now I’ll never be able to afford to upgrade my Win95.
I don’t know… What happens when the US Government starts imposing fines on foreign workers and companies.. People always complain that the US is closed minded and this whole mess over immigration has people up in arms in one way or the other..
What if the US said, nobody in the EU can travel to the US unless they pay a million dollar tariff?
It’s funny how the US is considered the evil doers of the world yet the EU wants 1.4 Billion from Micorosoft, who knows what they’ll ask for from Google, Apple and any other US company…
What do they do with that money?
@#3 “What power does the EU have over them?”
There are 750 million people in Europe versus 300 million in the USA.
Europe is potentially a much larger market than the USA.
You got to pay for those European social services some way!
What’s not better than a nice big juicy American company with deep pockets that everyone is afraid of? Look out Intel, IBM, Google, HP… you’re next!
Interesting that they say “using high prices to discourage software competition”.
In the real world, that’s very backwards. Usually, higher prices would reduce likelihood of buying something.
Unless, of course, the other choices are a free OS that’s useless to the average user, or one that can’t be purchased by itself, that has to be bought with overpriced hardware. None of which are completely compatible with each other.
I prohesize that MS will continue to drag it’s feet. Eventually the comission will get tough, then it’s gonna hit the fan. MS has a very defiant attitude towards goverment agencies, not surprising considering their experience in the US. I can’t imagine what measure’s the commision will take, but they’ll probrably be severe. Another nail in the coffin … I hope.
#11 Yep, 750 million people that have been fighting among themselves for 1000’s of years. If they didn’t have the US as a target for their dislike they would turn it right back upon themselves.
Doesn’t really matter though the EU will be ruled by Islamic law before too long and they will just cut off the heads of the Microsoft sales staff there.
Keep whining!
In Europe everyone must obey to Europe rules.
You don’t like it, don’t go there!
No big deal. MS will just slightly raise their prices in EU and pass the cost along to the consumer.
I am amazed at the comments I read here. As AnonCow says, if MS sells in Europe, it has to abide by European law. It doesn’t matter whether MS is a US company, and it doesn’t matter what the fine is used for. How would you all react if, say, BMW sold cars in the US that didn’t meet US standards? You would expect it to be forced to comply and/or fined by the US administration or courts. And if BMW refused to comply, you would be up in arms at the arrogance of this foreign firm. Well the same reasoning applies to Europe, Japan or Tuvalu.
Isn’t that like one day’s interest on Bill’s savings account?
But I’m so glad I don’t live in the EU or plan to ever visit.
And I’m sure they are just fine with that.
Of course we are still saddled with SAP.
Not fair I say!
love linux and hate the vole
“In Europe everyone must obey to Europe rules.”
What exactly are “Europe” rules? Is this the same Europe that has competing foreign policies? Example: Kosovo.
This is simply a shakedown. Admit it. Microsoft is an aging dinosaur with a big pile of cash. There are plenty of alternatives to MSFT bloatware.
Wanna bet the PeeYou goes after Google next?
#4 You make me laugh as usual with your clueless analysis. M$ is a paper tiger nowadays. They are more concerned with chasing Google then anything else. If M$ was able to enforce those “so called patents” they would have already done so. Ballmer should either scheisser or get off the crapper if he ever hopes to be anything then a laughing stock.
First, let me same that I’m a proud liberal. I’ll vote for Obama. I’m not a huge fan of big business. But the EU could find much better corporate evil doers to bother than Microsoft. Maybe EXXON/Mobile? Or BP? Or other big European companies that are polluting the environment? The regulators over there are feeling their oats because the Euro is up and the dollar is down. What goes around comes around. If they don’t cool down on this I have no doubt that there will be retaliation, not just from the US but from other parts of the world who don’t want to deal with Europe’s increasingly bureaucratic ways (and that’s saying a lot). Ms. Kroese is a economics major for god sakes? Does she think she knows more about how markets work than…the markets? Their brilliant idea to force Microsoft to produce a version of Windows XP without Windows Media Player was a total failure – NOBODY bought it. But the EU regulators thought it was good idea. Dumb-asses in power.
Until Microsoft comes into full compliance with European law all Copyright protection for Microsoft products in Europe should be suspended. This would provide real relief to the abused European consumers.
The first request from the EU’s commission toward Microsoft had been to give the users the choice to buy Windows with or without Media Player. Well, they did produce a version of windows without the media player, but it was at (almost) the same price as the normal version. I think the commission didn’t like Microsoft’s move on that request…
Then they were asked to produce details on interoperability code, so that other companies could develop software for NT on the same graound as Microsoft. The least to say is that Microsoft was VERY reluctant on that request, producing limited, undocumented APIs, with strict NDAs,… The commission decided they did not comply with the requests, even though they were given plnty of time. That’s when they were heavily fined.
And about the fact that other (enropean) companies should also be targeted, don’t worry, they are. The commission has requested actions in such fields as telecommunication( internet providers, mobile phone, TV ), transportation, utilities operators, banks, insurances, ….
The difference is that they usually comply with the commission’s requests…
This is one of many reasons the place is called Eurinal…
The entire Eurination Commission should resign in shame.
#11, HMeyers
The EU has a total population of around 500 million. They control almost 1/3 of the world’s economy.
#14, steelcobra,
That high price was for interoperability. In order to gain access to link to a MS property, the other companies need to be able to operate in the Windows environment. But, in an anti-competitive mood, they were charging the other software companies too high a price.
#17,
I have still not learned to appreciate your trolling remarks and ad hominem attacks. But I am reminded that small minds like to talk about small things.
#23,
Kosovo is not a part of the EU at this time. This is not a shakedown. MS was in non compliance with EU anti-competition laws. They decided to ignore the rulings and this is the result. The fine is meant to represent at least part of the financial gain MS has gained at the expense of its competition. If they want to recover their damages then that is separate.
#25,
MS is being fined for charging the competition too much for interoperability. They were not charged because no one likes “MS Media Center”. Real and other media players were forced out of business because they MS wouldn’t allow them to play.
#28,
I would expect someone to have a little more respect for their own neighborhood. Although you have seldom ever given any indication that you can have an intelligent thought. It must be rough to be known as such a dipshit.
#29 – Ah, my plan is coming to fruition.
#30,
That your brain has gone to seed?
Well, your remarks are not pithy but they are rotten.
Although that could explain your being in a jam all the time.
I got it, life is the pits being an asshole.
And lastly, that comment explains why you are a fruitcake.