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EU Fines Microsoft $1.3 Billion

Posted by kdawson on from the cost-of-doing-bidness dept.

jd writes "The EU has slammed Microsoft with a fine of €899 million ($1.337 billion at current exchange rates) for perpetuating violations of the 2004 antitrust ruling.The fine is the sum of daily fines running from June 21, 2006 to October 21, 2007. It is the first company ever to be fined for non-compliance. The amazing thing is that the EU now expects Microsoft to comply and 'close a dark chapter' in their history. The EU has opened new investigations into Microsoft's practices and gave a lukewarm response to the company's turning over yet another new leaf last week."

7 of 699 comments (clear)

  1. Re:1.3 billion by mallardtheduck · · Score: 5, Informative

    As I understand it, fines issued by the EU go to EU member states.

    I also don't understand why the size of the fine "clearly" indicates that people are lining their pockets. This is not the largest fine ever issued. (ExxonMobil was fined $5 Billion for Exxon Valdez, later halved, but so far not paid.)

  2. Re:And what if not? by asuffield · · Score: 5, Informative

    The EU will simply take the money by force. Microsoft has assets moving through the EU, in the form of their revenue from sales of their products. The EU will walk in to the retail outlets and take that revenue until they have their money - the money from every copy of Windows and every xbox sold will go directly to the EU, and Microsoft will never receive it. This is the standard method that courts use for extracting fines from recalcitrant corporations - you don't ban their products, you just take their products.

    And they'll keep doing it for as long as it takes.

  3. Re:Well... by Teun · · Score: 5, Informative

    The dollar doesnt fluctuate, it drops.
    Today it hit the lowest ever value against the Euro.

    --
    "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
  4. Re:Even as an MS fan, good... by CaptainZapp · · Score: 5, Informative

    Now, I'd like to see the EU start to use the same stick on large companies that also feel that they are above the law

    They do again and again. It's mostly, but not always price fixing. Other examples include Volkswagen that threatened their Italian dealers to pull the dealership when they sold to customers not living in Italy.

    Fines are usually very hefty and companies usually comply. Micropsoft risks to fall really flat on their face if they try their usual stints here.

    --
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    mit taschenrechner in der hand

    kraftwerk

  5. Re:Even as an MS fan, good... by K-Mile · · Score: 5, Informative

    But they do:

    Lift cartel: http://www.eubusiness.com/Competition/lifts-cartel-eu.33
    Zippers: http://www.eubusiness.com/Competition/1190197926.91/
    Dutch brewers: http://www.eubusiness.com/Competition/beer-cartel.09/

    All hundred million dollar fines or more...

  6. Re:1.3 billion by Teun · · Score: 5, Informative

    I'm curious as to where that money is going to be going. 1.3 billion? Clearly some people are taking advantage of the situation in an effort to line their own pockets. A stupid remark, you should be whipped.

    From the EU website:
    The penalty payment is paid into the EU Budget. It does not increase the budget, but reduces the contribution from Member States and so from taxpayers.
    So in deference to us paying the Microsoft tax Microsoft is paying (a small part of) EU tax, brilliant :)
    --
    "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
  7. Re:Well... by alexhs · · Score: 5, Informative

    Nitpicking with an AC...

    Euro an ECU are not the same thing, but when the second replaced the first one, its value was chosen to be initially the same. Look for the ECU and Euro wikipedia pages.

    Also coins and notes are available only since 2002.

    --
    I have discovered a truly marvelous proof of killer sig, which this margin is too narrow to contain.