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Microsoft Fails to Comply With EU Requirements
sebFlyte writes "ZDNet is reporting the news that the EU has rejected Microsoft's attempt to wriggle out of it's legal obligation to open up Windows protocols. Microsoft was attempting to bypass the regulation by offering a license totally incompatible with the GPL and which has an absurdly high fee attached. If Microsoft don't come up with a solution that the EU finds acceptable, then they can be fined $5m a day. They've also got some commentary on why Microsoft's behaviour cannot be allowed to stand." The BBC has commentary as well.
$5 million a day? Big deal. Remember in the People vs Larry Flynt how the court fined him $10,000 a day until he complied with their request. $5 million a day is something like 1.8 billion a year. Somehow I think Microsoft would pay that just so that they can remain in control. From their point of view, the value of keeping their protocols closed is worth more than $1.8 billion a year. After all, they have enough cash in the bank to pay that fine for the next
15 years.
The EU would have to charge them $50 million a day before they'd really
care.
The little blurb posted makes it sound like the EU ordered MS to create a license that was compatible with the GPL.
Is that the case? I can't find anything suggesting that the EU "named names" by saying the GPL or any specific license.
Anyone have any more insight? Did the EU really order MS to be compatible in this regard with a specific license, or is this just a poorly worded writeup (or is it just me)?
$1.8 billion a year would be a big boost to free software if an EU agency were to funnel it into free software development. That would anger Microsoft more than increasing the fine would.
I was wondering how Brown was going to afford those bus passes for the elderly. He's a sneaky one, that Chancellor.
This comment was formatted for readability, but I forgot the line break tags
Microsoft seems to be pretending that they are dealing with a customer, not a goverment. This kind of tactic will shoot them in the foot because they are ignoring the sovereignty of the EU. The EU won't put up with it since it will dilute their power.
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- Douglas Adams
If Microsoft don't come up with a solution that the EU finds acceptable, then they can be fined $5m a day.
I have no illusions that Microsoft would actually pay that - it's an exorbitant amount.
The worst punishment the EU can mete out is to bar Microsoft from doing business in participating countries.
If/when that happens, what will European Average Joe consumer reaction be?
The coolest voice ever.
As a reminder, Microsoft makes up to $ 1 billion of profit per month according to Cringely.
$ 5m per day is something like $ 1.8 billion dollars per year. So, it hurts bad, but it's still something Microsoft can afford.
This being said, the EU could also decide to slowly raise the fines over time. That would probably make Microsoft move. I just hope they are not going to introduce Windows XP Starter Edition in Europe... Scratch that, I hope MS is going to do just that, since that would make many europeans switch to Linux.
The right to offend is far more important than the right not to be offended. (Rowan Atkinson)
Because it's been solidly demonstrated that if you don't do something very large to dissuade Microsoft, they will ignore you.
In this case they were told they needed to open up their protocols and stop being anti-competitive, or they'd face something like this.
In their usual way, they've decided that charging you large amounts of money to have access to those protocols, as well as preventing everyone in the open source arena from actually using this stuff was what was called for. Basically this violates the letter and spirit of the ruling against Microsoft.
The US DoJ basically stopped pursuing this when Bush got into office. At least the EU actually has the smarts to actually enforce their rulings.
It is entirely against the long-term interests of the entire industry for Microsoft to say 'you can't write software that talks to our software'. All Your Base is not acceptable in this case.
Lost at C:>. Found at C.
The US Government should follow suit... no pun intended.
Seriously, in the global economy, trade similarities are going to become more and more important, especially with the US economy taking a very important second place to the EU. They will have to comply to trade. The US is no longer the bully hey once were.
These fines are being levied by the same EU Commission that is forcing through changes in EU patent law designed to allow companies like Microsoft to profit handsomely? Which EU commission shows all signs of being... how can I put this politely... bribed by Microsoft?
Why do I feel we are watching a made-for-public-viewing spectacle that will ultimately result in a trivial fine being paid and the continuation of business as usual?
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I checked on Bill's /. poll response. Evidently, he's not interested in Emporor. He's holding out for Kwisatz Haderach.
No, the EU didn't say MS had to GPL any program of their own. The EU just said they had to license their protocols and APIs to everyone, in a non-discriminating way.
Again, this doesn't mean that Windows had to be suddenly GPLed, but that the APIs should be available to _anyone_ who wants to write a program for Windows. Hardly an unreasonable demand, don't you think?
Well, MS basically thought it was smart and slapped a license on those protocols and APIs that basically said you can't share that info with anyone, or show your code to anyone. Basically a legalese way of saying "ok, but you can't use those specs in an OSS program."
Which basically already places a rather unreasonable restriction, when the whole idea in the first place was to make that info available to everyone.
A polar bear is a cartesian bear after a coordinate transform.
Normally you would be right, that MS should not be forced to give up trade secrets or patents, etc., but if you look at the facts of the case, it is not what it appears.
See, it works like this, MS is a vertical monopoly, and therefore they also develop software for their OS. If they use their superior position in the OS arena to help build their own applications, they are abusing their monopoly vertically.
That means, that if they use hidden or secret procedure calls, etc. to give their software an advantage, they are abusing their monopoly and therefore should be punished for it.
Remember, its not illegal to have a monopoly, but it is illegal to abuse that position.
You're making it sound as it the EU arbitrarily decided to start fining MS. There are laws that have been passed through democratic process. MS was tried in a court of law and found guilty of violating those laws. Now they're guilty of failing to abide by the court's ruling. If they want to do business in the EU they need to comply with the law, or they can stop doing business there.
Stick Balmer in a Room with RMS.
;)
Make Balmer listen to RMS until all problems are sorted.
Should take about 30 second, oh or Balmers head may explode.
Fining Microsoft a few million dollars reminds me of something Orson Welles said as Citizen Kane:
You're right, I did lose a million dollars last year. I expect to lose a million dollars this year. I expect to lose a million dollars next year.
You know, Mr. Thatcher, at the rate of a million dollars a year, I'll have to close this place - in 60 years.
Unemployment in Scandinavia by Country, according to the CIA world factbook. Finland, Greenland and Iceland included as they're all at various times and places considered Scandinavian, at least that's what Wikipedia told me.
Sweden: 4.9% (2003 estimate)
Norway: 4.7% (2003 est.)
Denmark: 6.1% (2003)
Finland: 9% (2003 est.)
Iceland: 3.4% (2003 est.)
Greenland: 10% (2000 est.)
For comparison:
United States: 6% (2003)
United Kingdom: 5% (2003 est.)
Canada: 7.8% (2003 est.)
France: 9.7% (2003 est.)
Germany: 10.5% (2003 est.)
Netherlands: 3.7% (2003 est.)
Switzerland: 3.7% (2003 est.)
This link says that the European Union's unemployment rate as a whole is 8%. They report various numbers differently than the CIA world factbook, such as reporting Denmark's rate as "below 5 per cent." They also say:
"Still, there is however no obvious relationship between the degree of social protection and the unemployment rate today. For example, the Netherlands has returned to low unemployment while continuing to offer high social protection. Scandinavian countries have maintained both high social protection and a low natural rate of unemployment."
All this arguing about $5 million per day and why should MS care what the EU thinks is completely missing the point. Mega multi-nationals like MS are the servants of capital markets. 95% of the time, the markets don't give a shit what kind of trouble a company has if the profits are rolling in as expected. But, trouble like getting shut out of a market the size of the EU would be disaster. The markets would punish MS severely.
A company that can't do business in the EU is not a global company, and their growth prospects would be drastically reduced. Remember that there's nothing personal here. The stock is worth the market's estimation of all future profits discounted for inflation, capital cost, risk, etc. $5 million a day in fines would have a much lower impact on MS' stock price. That's because the fine is quantified, predictible and likely short-term. But to be shut out of a market the size of the EU is unprecidented in modern corporate history. No corporate leader could possibly risk such an event. Imagine the shareholder lawsuits if MS stock price fell because they refused to comply with a the law in a juristiction the size of the EU. MS would knuckle under far before such a thing could happen.