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EU Says Microsoft Still Not Compliant

what about writes "News.com is reporting that the European Union still doesn't consider Microsoft in compliance with its anti-trust ruling." From the article: "Should the Commission issue a final decision against Microsoft, the software giant would face a retroactive fine of $2.36 million a day for the period between Dec. 15 and the date the final decision is issued. The Commission may then take additional steps to extend the daily fine until Microsoft complies with the order. The Commission's letter is just the latest action it has taken in the closely watched antitrust case. "

17 of 339 comments (clear)

  1. Is 2.36 million a day by RedHatLinux · · Score: 4, Interesting

    enough of a fine to make breaking the law an unprofitable method of doing business? I doubt it, given how much money Microsoft has saved up.

    1. Re:Is 2.36 million a day by Overly+Critical+Guy · · Score: 5, Interesting

      Microsoft had really better tone itself down for the EU. The EU's not going to let some big American company get pushy, and with the recent news of OSS in Europe, as well as the fact Apple is now #1 in the UK education market (passing Dell at #2), someone at Microsoft needs to just comply with what the EU wants. It's not worth the consequences. Tech is fickle, and just because Microsoft has a huge monopoly now doesn't mean it won't become irrelevant in a month.

      --
      "Sufferin' succotash."
    2. Re:Is 2.36 million a day by kebes · · Score: 5, Insightful

      Is 2.36 million a day enough of a fine to make breaking the law an unprofitable method of doing business? I doubt it, given how much money Microsoft has saved up.

      Well the article says:

      the software giant would face a retroactive fine of $2.36 million a day for the period between Dec. 15 and the date the final decision is issued

      It's been 85 days since Dec 15, 2005. So that means that the fine would already be $202 million. Microsoft's market cap is $281 bilion. So I guess it's not a big % of their budget. On the other hand, this fine represents an "operating cost" of $861 million a year. Paying out a billion dollars a year is not a trivial amount of money, even for MS. It's not so much that they "can't afford it" since they have large reserves of cash (enough to pay off this fine for many years, no doubt)... it's more that investors are not going to be pleased knowing that $1 billion/year is disappearing without any return on it. That will negatively affect stock prices, hence affect Microsoft's ability to operate, compete, etc.

      Plus, I would fully expect the EU to increase the daily fine if this went on for a long time. I'm sure other laws would come into play also, based on Microsoft's obvious ignoring of rulings. They could be ordered to stop doing business in the EU altogether. After all, if they are unwilling to comply with this legal directive, then who knows what others laws they might ignore. You can't afford to have rogue companies operating in your countries!

      So I think MS will have to take this fine seriously, one way or another.

    3. Re:Is 2.36 million a day by LetterRip · · Score: 4, Insightful

      [QUOTE]it's more that investors are not going to be pleased knowing that $1 billion/year is disappearing without any return on it. [/QUOTE]

      The return is in that they can stunt competition - they desperately do not want competitors to be able to interoperate otherwise they risk losing their monopoly. If there were truly no return, then they would have made the change shortly after the initial request.

      LetterRip

    4. Re:Is 2.36 million a day by mormop · · Score: 4, Interesting

      From Gartner:

      Apple has confirmed that it's taken the number one spot in the western European education market.
      Apple's education market share in western Europe is now 15.2 per cent, relegating Dell, with 14.7 per cent, to second place.

      If Apple owns 15.2% of the EU market that leaves 84.8% that are running Windows minus the small percentage that are running Linux. It's all very well putting Apple in the number 1 PC vendor spot but the Windows share is Dell plus any number of other Intel/MS manufacturers plus schools that build their own and use site wide volume licences etc.

      Without wishing to piss on the Apple parade, MS are still the number 1 OS in education. Believe me, I wish it were otherwise as I've spent some time putting Linux/Samba in place of a school's NT network and I soooooooo want to run Linux clients but there's just so much curriculum software for Windows that can't be replaced with what's available for Linux/MAC.

      On the other hand, I don't see how MS can win this one. The validity of their licences in the EU only holds because EU law supports them. If MS take the piss it only needs shrink wrapped licences to be declared invalid and MS are bolloxed.

      The EU could also change competition law and make the max daily fine 10 million or 10 billion. If MS threaten to pull out of Europe you can look at it two ways, 1 - a disaster that could hurt the European economy or 2 - an opportunity for the birth of a whole new European software industry. OK so start the flames but at the end of the day there are many people who have stomped out of their workplace convinced that the company that's treated them so badly will suffer only to find that after a short period of readjustment the company forgets they even existed.

      In the event of MS exiting Europe you can expect to see many of today's Linux geeks being tomorrows training company millionaires. Roll it on, that's what I say.

      --
      Hmmmmmm..... Deep fried and look like Squirrel.
  2. Wrist-slapping by truthsearch · · Score: 4, Insightful

    Still just a slap on the wrist until they actually get Microsoft to end its anti-competitive practices. The day a government actually gets Microsoft to change its corporate conduct is the day I'll applaud.

  3. Re:May be risky, but... by erroneus · · Score: 4, Insightful

    I have to disagree. There is already a strong movement in favor of open source in Europe and it is merely the habit of having Microsoft and the pain of switching that prevents them fom moving over sooner than later. To have Microsoft pull out support would only hasten the move. And once Europe goes open source, the rest of their neighbors won't be far behind. Will this affect the U.S. market much? If the U.S.'s speedy change to the metric system is any indication...

  4. Re:May be risky, but... by OfF3nSiV3 · · Score: 5, Insightful

    MS can't leave Europe because it makes much more than a couple millions a day.. and it can't deny support for european users as when they sell a product they commit to support it

  5. Re:May be risky, but... by Dunbal · · Score: 4, Insightful

    Stop selling products in Europe.
    Deny tech support to companies/users in Europe.
    Buy advertising stating why they're pulling out of the market.


          Which would only underline the EU's point.

    Can you imagine the backlash

          Yes I can, but I think this backlash would not quite be in the same direction as you think. In fact, it would be the worst thing Microsoft could ever do. I know I would certainly boycott a company that thought it was above the law.

    --
    Seven puppies were harmed during the making of this post.
  6. Re:May be risky, but... by DataCannibal · · Score: 5, Interesting

    Deny tech support to companies/users in Europe.

    yes, imagine the backlash as thousands of companies in Europe start suing Microsoft for breach of contract when MS refuses them support. That ought to go down well with the shareholders.

    +5 insightful, fuck off! This guy has no idea what he's talking about.

    --
    No but, yeah but, no but...
  7. Re:May be risky, but... by Alex+P+Keaton+in+da · · Score: 4, Insightful

    I agree with you re: opensource, however consider this analogy:
    It would be great to get off gasoline- But if gasoline were suddenly unavailable, despite the fact that we could grow corn and use ethanol or walk or whatever (the replacement isn't the issue), the unplanned switchover would be very painful....

    --
    And All I Ask is a Tall Ship And a Star to Steer Her By
  8. Re:May be risky, but... by moochfish · · Score: 4, Insightful

    Doing that would be the single biggest (and stupidest) gamble Microsoft would have ever taken. Not only do they stand to lose *all* of the business in the EU for the duration of their "protest," but if the protest backfired and they looked further like scum, they stand to *also* pay the fine. Not to mention their competitors (apple, IBM, Sun, Red Hat) would gain significant mindshare. It may even prove to the EU that Microsoft is not only an abusive Monopoly, but one that must be dismantled at all costs. If there's any political pressure that might result in a US government imposed MS breakup, it would be from the EU.

    Most of all, if I was a business relying on a software vendor that one day decided to halt support to prove a political point, that would be the day I fire up the installer for their competitors.

  9. Re:May be risky, but... by Anonymous Coward · · Score: 5, Insightful

    >EU wants to play hardball? If they're smart, Microsoft could REALLY play this off to >their advantage, making themselves look like a victim and getting the EU to back down.

    About 20 years ago I went into a library and out of the corner of my eye I saw
    a headline of a British newspaper from 1901 that caught my attention.

    The headline read:
    "Storm in English Channel cuts off Europe from Britain"

    I laughed when I saw that because it demonstrated the inherent arrogance of
    that journalist's perspective on relative value.

    Your comment is just like that headline. Let's consider some facts shall we?
    1) Microsoft is a US based corporation.
    2) Microsoft employs what 60,000? 80,000 people?
    3) Last time I checked the EU contained over 300 million people.

    THE EU is playing hardball?!?!
    No my friend, I don't think so.
    I think Microsoft is playing a game of chicken
    because that's the only game they know how to play.
    They think that if they threaten to take away their
    marbles that the EU will cave in. That has worked
    in the past (in the US), but I think the EU is
    getting sick and tired of being treated as a second
    fiddle to the US and they have no loyalty to Microsoft.

    No, I think Microsoft is about to discover that the
    EU doesn't play by Microsoft's rules.

    --- Johnny

  10. One clear point here by erroneus · · Score: 5, Insightful

    The EU courts ruled that they need to supply the information to competitors. They did not say commercial competitors. They did not say they could change a fee for it. (One could argue that they didn't say they couldn't but that's just bullsit weaseling that they won't get away with.) But to stipulate that the license on the information is that it could not be released to the public is 100% wrong and against the demands of the EU courts.

    "Competitors" can and does include commercial, for-profit and non-profit competition alike. Whatever organization that is "Samba" along with whatever organization that is "OpenOffice" and whatever organization that is "Ximian" all qualify in this regard as far as I can tell.

    Frankly, this is kind of fun to watch Microsoft in this losing battle. They are attempting to play this the way they played it in the U.S. and these people AREN'T Americans and probably dislike American companies... especially arrogant ones like Microsoft.

    I just wonder if I will have to wait until Christmas to get my presents...

  11. A nontrivial penalty by PhysicsPhil · · Score: 5, Insightful
    Many posters are claiming that this is not enough to make a real difference to MS, but I disagree. $2.36 million per day is not chump change.

    Microsoft's revenues are ~$40 billion annually, leading to a ~$13 billion profit. $2.36 million per day is $861 million per year, or 6% of Microsoft's yearly profits. While it won't kill them, figures like that are enough to make investors (and their lawsuit-happy lawyers) sit up and take notice.

    It's also important to realize that this will only be the beginning. If MS continues to flout the EU's penalties, they will only get stiffer. In a fight between a multinational corporation and a multinational government, I'm betting on the EU this time.

  12. Re:May be risky, but... by Austerity+Empowers · · Score: 4, Interesting

    Actually this would be great for the US. Let European corporations figure out how to effectively switch away from MS, and then we can just swoop in and adopt the finished product.

  13. Maybe EU is getting all MS have... :) by Jugalator · · Score: 4, Funny

    Taeus' report describes various parts of the documentation as "entirely inadequate" and "self-contradictory," according to the Commission statement. "Taeus concludes that Microsoft's documentation was written 'primarily to maximize volume (page count) while minimizing useful information.'"

    Microsoft, however, contends it has gone above and beyond industry requirements for documentation.


    LOL, MS may actually speak the truth, and "inadequate" and "self-contradictory" may exactly be what the technical docs are. :-)

    --
    Beware: In C++, your friends can see your privates!