Microsoft Hit With 280m Euro Fine

Craig Mason writes "The BBC Reports that "Microsoft has been fined 280.5m euros ($357m; £194m) by the European Commission for failing to comply with an anti-competition ruling. The software giant was hit by the fine following a long-running dispute between the US firm and EU regulators. The move follows a landmark EU ruling in 2004, which ordered Microsoft to provide rivals with information about its Windows operating system. EU regulators also warned Microsoft it could face new fines of 3m euros a day.""

Comments

Worrying thought...

[tygerstripes]

What happens if they don't pay?

Re:Worrying thought...

[WhiteWolf666]

Simple. The EC declares Microsoft in contempt, leevies a larger fine. Files a complaint with the WTO, files a complaint with the U.S. FTC and SEC. The fine continues to accrue interest.

Microsoft still doesn't pay. The WTO complaint fails. FTC/SEC blow off the EC.

Fine grows larger. EC confiscates Microsoft Europe's assets. Most likely, some nations (like perhaps China/Russia) confiscate some Microsoft assets as well, paying a portion to the EC.

Microsoft still doesn't pay.

EC prohibits Microsoft from doing business in Europe. EC strips Microsoft's European copyright, permitting free distribution of MS products. As you may or may not know, ISPs in Europe are closed related to the government. What would happen next would be nothing other than a full-off declaration of War on Microsoft by the EU, with ISPs blackholing WindowsUpdate in favor of a EuropeanUpdate site (with WGA removed), massive investment of capital by the EU into developing alternative systems, and million upons millions of Linux and/or OS X systems brought online within a year, all bearing the EU's seal of approval.

Don't believe me? Europe's already done something similar with GSM. While that wasn't quite as antagonistic, Europe isn't afraid to build its own analog, at considerable expense (see the Galileo global satellite system). The EU will protect it self, economically, and in terms of security. They'll "steal" Windows if need be, and Europe will happily develop its own OS, most likely, in my estimation, a heavily sponsored version of Linux (SuSE or Mandriva).

From the BBC site:

[A beautiful mind]

FROM OTHER NEWS SITES
Telegraph EU fines Microsoft ,280.5m - 30 mins ago
Guardian Unlimited EU hits Microsoft with 280.5m antitrust fine - 34 mins ago
MSNBC Microsoft calls EU fine unjust - 37 mins ago
vnunet.com EC slaps 280m fine on Microsoft - 38 mins ago
The Register Commission beats Microsoft with ,280m stick - 41 mins ago

You can almost believe in bias free journalism, can you? :)

Re:WOW! but....

[oh_my_080980980]

I think the important point here is that the EU fined Microsoft and did not cave to pressure from the United States and interested third parties. There's no appealing this one. God bless the EU!

Now the question is will Microsoft comply?

Higher fines possible

[bobbo69]

From the FT: 'Under European Union competition rules companies that fail to comply with a Commission ruling can be fined up to 5 per cent of their daily worldwide turnover.

In Microsoft's case this would be about $5.5m-a-day.'

http://www.ft.com/cms/s/c55bc756-1047-11db-8f6f-00 00779e2340.html

I would imagine that there would be stiffer penalties (i.e., non-financial aimed at curtailing MSFT's ability to trade in the EU) available if MSFT continued to defy the commission. If there were not this would be a de facto admission that companies can break the law in the EU with impunity if they are rich enough. I very much doubt the commission would tolerate that state of affairs.

Re:Easy

[tygerstripes]

This is my point. What would be the consequences of such inaction? Basically, the EU is seen to be powerless against mega-corporations. The law is subject to corporations, not the other way around. M$ would be perceived as above the law in the EU! Big, big trouble...

The only way the EU could actually enforce this would be to threaten, essentially, trade sanctions. But how heavily is the government, industrial and home market of every EU country saturated with M$ products? So they can't even impose anything worth a damn without incurring massively detrimental consequences themselves.

Think this through, seriously. It's frightening.

Re:Double Standard

[mccalli]

Am I the only one who finds it the least bit ironic that while the EU fines MS for bundling application, Apple is bashing MS with comericals bragging about how it bundles MORE software? I guess having no marketshare gives you the right to extra competative advantage?

Yes, I noticed that. However, the comparison is actually "Mac vs PC", not "Mac vs Microsoft". I can't buy a PC from Microsoft, I can buy a PC from Dell. Or HP. Or Fred down the road if I give him the cash to build one.

Dell, HP and Fred-down-the-road can bundle whatever applications they like. Years ago a lot of budget places used to bundle Lotus Smartsuite to keep their prices down vs bundling Office. So the comparison is valid. And yes, having no marketshare does rather free you from monopolist rules because, pretty much by definition, you're not a monopolist.

Cheers,
Ian

Re:Easy

[schon]

They can't really declare it freeware.

Of course they can. Assign a value of $X to the copyright of a single product, then the EU just assumes the copyright for it in lieu of the debt, and releases it at no charge. Seizure of assets happens all the time with real property - why is it so hard to think that it could happen with virtual property?

What happens when Microsoft did comply, how can you just take that back.

If MS paid the fine, do you think that the EU will be giving the money back if/when they comply?

It's a punishment, they're not supposed to get it back.