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EU Fines Microsoft $1.3 Billion
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."
I wonder what happens if MS ignores that order as well... They won't be able to ban Microsoft products, I guess.
I do not believe in karma. "Funny"=-6. Do good and forbid evil. Yours, Oft-Offtopic Flamebaiting Troll.
I'm a .NET dev, and rather fond of the platform... don't groan too loudly... but even I think this is a good move. I'm glad to see the EU actually prepared to hold large corporations accountable to the law. A pet hate of mine is a legal system that will sanction heavily a private citizen for minor crimes but effectively tut disaprovingly when a large company dumps waste in a river.
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.
I'd prefer to have seen Microsoft go the way of Standard Oil or "Ma Bell". The problem was, I don't think anyone in the courts at the time really understood the issue.
You seem unclear on the concept of "rights". A "right" is something that a government has decided you may do. This government has decided that they do not have this "right". You can't wave a magic BS stick in the air and make it so that they do. They don't have the right because the EU government bloody well says they don't, and that's all there is to it.
Indeed. The fine is a percentage of the turnover of the company in question (small companies get relatively small fines, large companies relatively large - hence the size of the MS fine). It flows into the EU budget, which is also composed of contributions by EU member states. So basically, the fine adds 899 billion euros to the balance, which means that the member states need to pay less.
It seems that America is losing its ethical way. For the most part, our government's "hands off" approach to regulating businesses and enforcing the law with respect to corporations is coming at a huge cost to the average American citizen.
Europe and the "nation-state" of California may be our only hope of leveling the playing field with regard to how corporations do business.
We, as a nation, need to demand that our elected leaders start regulating these companies for the good of the country and the planet. It should not be wrong to force telecom companies to open their networks to competition, or to require stricter air quality and fuel economy from the energy and transportation sectors of our economy. How about regulating banks and credit institutions with regard to credit risk? Then punishing banks that make stupid decisions - and then sell those stupid decisions to other investors.
To those that say that more Government will only screw things up: Look around you. Corporations left to their own devices have screwed things up royally in the last 8 years.
Football games have referees for a reason - the same reason that businesses need government regulation. You can not have a level playing field without government regulation.
-ted
Well, since the euro has only existed for 9 years, lowest ever == lowest in 9 years.
Microsoft's net income was around $14 billion in 2007. Over fifteen months, this charge is only 7.6% of that. It's only around 2% of their gross revenue. It's basically just a little extra tax, from MS's perspective. No mistake, it's still a lot of money, but I wouldn't be surprised if they paid it happily and kept their little monopoly.
You don't really understand the scale of government, do you? I work for a small (tiny, miniscule, microscopic) government agency. We have maybe 50 or 80 employees. Our budget for next 5 years is in the hundreds of millions (US$). I award contracts worth tens of millions of dollars on a routine basis.
If MS was to try and pull that, we'd contract with Red Hat, Novell, somebody, and be up and running before the licenses expired. There's only a few apps that are Windows only that don't have linux equivalents; if someone was to throw a few million at it they'd be ported to linux in no time, even if it meant running with wine in the interim.
Try a stunt like that with a real government that can throw billions at the problem, and MS would find itself in the freezer. Remember, governments can pass laws; they can easily pass a law suspending copyright until they get it sorted out.
Oh - and those licenses, we don't need them: you copyrights are void.
I dont read
This is the most appropriate punishment because it is MS's anti-competitive behavior that would ultimately lead to them being barred from competing in the marketplace. It's not like people wouldn't be able to buy Macs or install Linux for their OS or use Open office/other alternatives for productivity.
Heck it might actually do the industry some good, nothing breeds innovation like necessity.
Collector's Edition
I expect posts like this on digg where the average age appears to be ten, but your post is infantile. As mentioned here just above your own post are a small sample of the numerous companies that the EU has fined. The only difference is Microsoft disobeyed the EU after being fined. Hence this further fine.
Frankly, the EU doles out fines to any companies who disobey European laws. Microsoft broke the law they got fined, they ignored the findings/requirements of the remedy they got fined again. There isn't any evil European persecution of an American company going on here. Just a company being fined for breaking the law.
I think it would severely hurt industry across the EU if the sale of Microsoft products were banned, especially since the EU has to deal with the rest of the world who for the most part use Microsoft products. It's just not possible for free/open source software to inter-operate effectively with Microsoft products at the moment, which was kind of the whole point of the anti-trust ruling.
There was a time when parking fines in London were less than the cost of an all-day parking space. Predictably people parked wherever they liked. The solution was much stiffer fines, wheel clamping and the ability to tow cars away and impound them.
The same thing is happening here, complying would cost more than the fine. We need some equivalent of "wheel clamping" for Microsoft.
I wouldn't count on it happening though, I can see states getting used to a regular "microsoft fine" dividend. They will probably have a routine of Microsoft saying it will clean up, not doing so and being fined again.
Every time MS vs. EU is discussed on slashdot someone drags this stupid argument out of the closet.
MS would be very, very screwed if they would try to do anything like this. Let me put things into perspective:
The EU area has a GPD of $14.51 trillion, while MS has a revenue of around $51 billion, globally. The EU has the power of the police, government, military behind them which can seize MS's assets and if MS decides to pull out of EU they would leave billions in assets behind. If events reach that point, EU given the national security clauses in copyright conventions would simply suspend MS copyright in Europe while Europe moves to Linux/BSD/Solaris at a hugely accelerated pace. Given that the EU is the largest economy block in the world, everyone else would be forced to use those open technologies and MS would find itself with a pretty minimal market share in a few years.
Even Microsoft isn't this stupid to make a move anything like this.
It takes a man to suffer ignorance and smile
Be yourself no matter what they say
Whatever Mr. Tinfoil Hat. "Oh Noes, teh big bad gubamint is gonnas taks all my monies. Dey is teh DICTATOR!" You know, there are real dictators in the world, who are truly evil, and are working to oppress their people. You won't find them in Europe though, no matter what your libertarian fantasies tell you. By comparing the government of the EU to real dictators, you are pissing in the eye sockets of all the people those real dictators have tortured and murdered.
Try finding a way to voice your concerns without resorting to hyperbole. We're all pretty smart here, you don't need to make a bigger case than you've actually got for us to 'get it.'
- None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
In essence, Microsoft is gaming the system, breaking the free market.
There's a point of view that what Microsoft is doing is completely rational, and that the problem isn't what MS is doing, but that their competitors *don't* do those things, and instead naively try to compete on technical quality and consumer appeal. While I disagree with this point of view, there's one aspect I can agree with, which is that MS is acting rationally. What the EU is doing (or should be doing) is imposing such extreme restrictions and/or fines on MS that it is no longer rational for them to abuse their position the way they do.
That's why the answer to: isn't 1.4bn rather excessive Is no. In fact, it may by too low, if it's insufficient to get MS to change their ways.
You can't have free trade when a single corporation owns the marketplace. That is why the EU stepped in, to preserve "free trade" ensuring there IS competition.
The EU is not an evil government and Microsoft is not a defenseless do-gooder. This is not the first time MS has been in trouble because of its business practices, althought in the US, since Bush came to power, they've sure enjoyed a nice ride over there, haven't they?
"You know, there are real dictators in the world, who are truly evil, and are working to oppress their people." The removal of powers from elected parliaments, by devious method, to an unelected and undemocratic executive, Council of ministers, which holds its meetings in secret, unelected commissioners, and a very weak parliament that is bought and paid for by the latter.
Too bad that your prejudice has kept you from keeping track of recent developments. This criticism has been levelled at the EU for a long time and was to an extent justified, but guess what? They have actually done something about it. The European Parliament, which is directly elected and no longer as weak as it used to be, has received new powers with every treaty revision since 1992 and plays an integral role in EU law-making. Meetings of the Council of Ministers are not secret, as you can see on its website, which states: "All Council deliberations under the co-decision procedure are open to the public. The Council's first deliberations on legislative acts other than those adopted by co-decision are open to the public. The Council regularly holds public debates on important issues affecting the interests of the Union and its citizens, as well as policy debates on the Council's programmes." FYI, the co-decision procedure is the most commonly used procedure in EU legislation. Granted, institutional reform is slow, the EU still has work to do in terms of its accountability and communication with citizens, but that hardly makes it an evil oppressive dictatorship, which is the point that you were trying to make. Apart from Belarus, you will indeed not find oppressive dictatorships in Europe at this time, and the EU was established precisely to keep it this way, which brings me to your next point.
Yes, Europe has a fine tradition historically to be able to ignore history and repeat past mistakes yet again. Europe's ability for arrogance is only matched by its fantastic ability for creating evil, two world wars, and hundreds of millions of dead. How could I possibly not trust a European elite running out of control, and with a massive cavern where democratic due process should exist, but doesn't.
Please explain first who you mean by "Europe" and who exactly is being "arrogant". Is it Britain, Germany, Russia, France, Greece, Spain, Poland, Hungary, Sweden? Does every single one of this country have a "fine tradition to be able to ignore history and repeat past mistakes"? Last time I checked, Germans are still making up for the crimes of the nazis and not exactly preparing a second Holocaust. The Scandinavians no longer send out marauding bands of pirates to rob frightened people in coastal places. In Spain acknowledgment is slowly growing for the abuses and oppression of the Franco dictatorship, even on the political right. Italy does not seem eager to resurrect the Roman Empire. You may note that none of these examples has anything to do with the other, which illustrates that you can't generalise across an entire continent. I could even go on and argue that the one country which seemed unable to learn from history (notably European colonial history) in the last few years, with an elite running out of control causing millions of dead, does not lie in Europe, but I don't want to ignite another flamewar. In any case, as I mentioned before, the EU was established to prevent repetition of the mistakes of the past. It has been rather successful at that, considering that France and Germany are unlikely to go to war with each other at any point in the near future. It obviously does not have a perfect record, as was shown in the fall of Yugoslavia in the 1990s. Still, I fail to see how you can see the current European elite as being "out of control" or suggest that it will cause millions of people to die any time soon.
This same EU that's failed 13 years of account audits?
What does failing 13