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EC Sends Statement of Objections To Microsoft For Violating Anti-Trust Agreement

dkleinsc writes "Three years ago, Microsoft came to an agreement with EU regulators that required them to provide users with a choice of web browsers. Last July, they found Microsoft in breach of that agreement. Today, they announced that this will result in charges, potentially resulting in fines as large as $7 billion." Microsoft gets one last chance to defend itself.

30 of 173 comments (clear)

  1. The only way... by serviscope_minor · · Score: 5, Insightful

    The only way to make corporations behave is to make the fine firstly remove all profits from the nefarious acts and then add enough on top that the risk/reward ratio is larger than 1 so that they don't do bad things on the chance that they're not caught often enough to matter.

    In other words, the fine must really hurt otherwise it's just the cost of doing business (c.f. the paltry 1bn that intel had to spend for years of blatantly illegal market fixing).

    --
    SJW n. One who posts facts.
    1. Re:The only way... by Anonymous Coward · · Score: 3, Interesting

      Corporations never do anything profitable. Just ask anyone in Hollywood. I suggest going after up to 200% of revenue directly or indirectly related.

    2. Re:The only way... by serviscope_minor · · Score: 2

      Microsoft has a dwindling brower share of a dwindling platform. It's impossible for it to dominate the internet anymore -

      But they made a lot of money in the past through this domination. Basically, you're saying they should more or less get away with it because it no longer matters.

      This case has been running a very long time.

      With your suggestion, it is worth the corporation stalling for as long as possible. That way, the chances are if they can stall for 10 years or more, it won't be nearly as important.

      The point is to prevent them doing it again.

      The prevention only works if it is simply not worth the risk.

      --
      SJW n. One who posts facts.
    3. Re:The only way... by aliquis · · Score: 2

      What about the AppStore? Or whatever it's called now.

    4. Re:The only way... by moronoxyd · · Score: 4, Insightful

      Not the "American company" argument again...

      Microsoft had a binding contract with the EU comission, and they broke it.
      If they hadn't, the browser ballot would bee a thing of the past in a few months and nobody would care about it anymore.

      But Microsoft fucked up, and now they have to face the music for breaking a contract.

      And the EU doesn't treat American companies any different from European companies. Ask Gaz du France and E.on whether they liked their fines of half a billion Euro each for collusion: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=1_39401

  2. bundle by jbolden · · Score: 2

    I could understand Microsoft being a pain in the browser department when they were building an entire stack on top of I.E. with:

    a) Active Desktop / Channels
    b) Active-x (i.e.windows binaries as a web format)
    c) A specialized Java that ran much faster than standard Java
    d) Deep ties with IIS

    And then for the later IE6 years, I can understand the advantages of only offering a crippled web browser once they won the browser wars to keep people locked into the Microsoft desktop.

    But today's newer web apps are being built browser and OS independent, a lot of them are built on Macs and a lot migrate their functionality over from Linux. IIS specific software isn't popular, and even where it is deep ties with IE isn't. Today's IE is rather full featured and aims at standards compliance.

    You have to wonder why they can't just throw in Opera, Firefox, Chrome, Safari in a "other browsers" folder and be done with this whole mess. What is the logic from their perspective? Why even bother with this fight anymore. What do they get out of it?

    1. Re:bundle by crazyjj · · Score: 3, Informative

      Apple doesn't ban other browsers on iOS, there are dozens.

      All the others are just skins running on top of the Safari renderer. Opera is the exception, and they are were only able to pull it off with a weird hack (with the renderer running sever-side).

      --
      What political party do you join when you don't like Bible-thumpers *or* hippies?
  3. Re:Slashdotters torn by conscience? by amiga3D · · Score: 5, Insightful

    I admit it's hard to feel sorry for microsoft. Anytime you see a company that's been as consistently evil as someone like MS has been finally get taken down by an even bigger, meaner bully you can't help but feel a little gleeful.

  4. Re:Well, the EU has to make money some how by Anonymous Coward · · Score: 3, Informative

    Can't install another browser on the iPad or iPhone?

    Chrome
    Dolphin
    Opera
    Mercury
    Atomic
    Dingo

  5. Re:Slashdotters torn by conscience? by tuppe666 · · Score: 4, Insightful

    everybody knows that the ruling was politically motivated bullshit. Squeeze the american company for a few billion pesos.

    You are aware that the economy of the European Union generates a GDP of over €12.629 trillion (US$17.578 trillion in 2011) ...and they were guilty as sin.

  6. Re:Need a better summary. by khallow · · Score: 3, Insightful

    It shouldn't be revenue. Rather, it should be a portion of their profit.

    There are a number of profitable businesses that never make a profit. Someone already mentioned movies. Every so often you see people burned by movie contracts that pay a percentage of the profits rather than a percentage of the revenue.

  7. Re:Fine by fustakrakich · · Score: 2

    Something like a ban on Microsoft bidding for EU government contracts would do more damage.

    I would like to see them invalidate their copyrights and patents to put into the public domain. That would hurt more than anything, but unfortunately, it's a pipe dream.

    *sigh* If only the public would stand up and demand such things, or at the very least vote for people that represent the public's interest. Europe's multiple political parties, which are sabotaging their economies, are proving to be no better than the US two party system, and every bit as corrupt.

    --
    “He’s not deformed, he’s just drunk!”
  8. Re:Look over there! by dkleinsc · · Score: 3, Insightful

    No, that's not a valid defense. All that does is argue that Apple is committing the same crimes as Microsoft.

    Another way of thinking about it: If I steal $1000, and you steal $2000, does that make me not guilty?

    --
    I am officially gone from /. Long live http://www.soylentnews.com/
  9. Re:Well, the EU has to make money some how by jader3rd · · Score: 3, Informative

    Can't install another browser on the iPad or iPhone?

    Chrome Dolphin Opera Mercury Atomic Dingo

    Besides Opera those are all skins around Safari, they are not new browsers. Opera's a little special because it's not a browser, it's more like a browser previewer where the browser actually runs on Operas servers.

  10. Re:Fine by crazyjj · · Score: 3, Interesting

    I would like to see them invalidate their copyrights and patents to put into the public domain. That would hurt more than anything, but unfortunately, it's a pipe dream.

    It's a pipe dream because if the EU did that, the U.S. might turn around and do the same with EU companies in the U.S.

    --
    What political party do you join when you don't like Bible-thumpers *or* hippies?
  11. Re:Fine by fustakrakich · · Score: 2

    That would be a great thing for the rest of us who want to see the abolition of copyrights/patents altogether.

    But, as you said, I'm looking forward to seeing rainbow shitting unicorns

    --
    “He’s not deformed, he’s just drunk!”
  12. Re:Fine by Vanderhoth · · Score: 3, Funny

    And without that revenue from government contracts how do you expect them to keep innovating?

    Catering to three year olds seems to be working for them.

  13. Re:Fine by poetmatt · · Score: 3, Funny

    which would leave the world in a much better place.

  14. Re:Slashdotters torn by conscience? by amiga3D · · Score: 2

    Either way works for me. Win-Win.

  15. Re:Fine by Dunbal · · Score: 3, Interesting

    I would like to see them invalidate their copyrights and patents

    Invalidate their business license. It's as simple as that. I don't know why it isn't done more often. You mess up in a car and your driver's license is in jeapordy with points, suspension or revocation. Hold businesses accountable for their actions via the licensing system as well. QED.

    --
    Seven puppies were harmed during the making of this post.
  16. Microsoft's bad decisions just keep coming by dtjohnson · · Score: 4, Interesting

    It was a bad decision to tie the IE web browser function into the Windows operating system. It was a bad decision to fight the anti-monopoly folks when they came calling. It was a bad decision to drag their feet about offering browser alternatives in Windows. And, now, it has been a bad decision by Microsoft to blow off the EU regulators when they were ordered to include browser alternatives. Microsoft was gifted with their Windows monopoly thanks to being in the right place in the right year with the right software. Now, however, the world has moved on and the Windows monopoly is tottering. Microsoft should have just quietly enjoyed their monopoly while planning for its eventual demise rather than attempting to enjoy it in perpetuity. Now, the entire Microsoft 'empire' built on the Windows monopoly is in jeopardy...and the end will probably come much sooner than anyone thinks. It was stupid back a few years to ignore the EU and it is even more stupid now, given the new market realities that Microsoft faces. Microsoft needs new leadership...they need it really soon...and even then it might be too late.

  17. Re:Foul EU by Robert+Zenz · · Score: 3, Informative

    7 billion? Somebody has to actually try to establish why its a 7billion fine.

    Scaling. Because it doesn't do anything if you fine a company with 50k if said company makes 3 billion a quarter.

  18. Re:Foul EU by serviscope_minor · · Score: 3, Insightful

    7 billion? Somebody has to actually try to establish why its a 7billion fine. What for?

    Violating the terms of the settlement. And a big enough fine to make it not having been worth the effort to voilate the terms.

    If the law can't prevent infractions, then it's toothless.

    A Browser choice? Really? In 2012, 2011, 2010

    Ah well, it's well past so we should let them off the hook. No! Of course not!

    Today these idiots come from MS, tommorow it will be you, or your company, or your family

    You mean these "idiots" coming at coportations who repeatedly break the law and making them stop? Of course you and your family should be above the law!

    or your bank.

    Which one? Both of mine are now owned by the government. Most of the rest are being investigated for large scale price fixing.

    So, yeah, these "idiots" are coming at my bank. Good on them. Nail the bastards to the wall for illegal acts costing tens to hundreds of billions of dollars.

    Through illegal companies have illegally enriched themselves (i.e. taken my money through illegal means) to the tune of hundreds of billions---vastly larger than all the thefts and burlgaries combined.

    Yet you seem to think that people coming after them are "idiots" and somehow your or your family should be above the law.

    You wouldn't call the police idiots for pursuing a burglar who robbed you. But because you clearly feel that one day you maybe able to get these ill-gotten gains for yourself you seem to think it's OK.

    --
    SJW n. One who posts facts.
  19. Re:Choice of Browsers is MS's Burden? by KevinIsOwn · · Score: 5, Informative

    Have the standards for posting comments gotten so low that people don't even completely read the submission title? (I already know nobody reads the article or the whole summary even...)

    Here's a quick (rough) overview for you and the mods who put you at +5:

    1. Microsoft was accused of unfairly using its monopoly in the OS market to get people to use IE over Netscape.
    2. Microsoft and the EU came to an agreement that Microsoft would offer a choice of browsers to users., or be punished.
    3. Microsoft is now accused of breaking that agreement.

    The fact that firefox, opera and safari are easily reachable with a Google search is completely irrelevant. Microsoft made an agreement with the EU and broke it.

    And one more thing: No, most computer users do not go and download a browser. You can call them lazy and/or stupid all you want, but that doesn't change the fact that many people just don't care what browser they are using. They turn on the computer, and they start using the internet. The browser is completely irrelevant to them. In the context of Microsoft's OS monopoly in the 90s, it makes perfect sense for users to be asked what browser they want to use up front.

  20. Source of the rule by DragonWriter · · Score: 3, Insightful

    So, why doesn't the same rule apply to OS X, iOS, Android, etc.? They also come with preinstalled browser.

    The rule is not a rule about operating systems that come with a pre-installed browser, it is a rule set in an agreement that Microsoft entered into with the EU as part of the settlement of charges related to Microsoft illegally leveraging an existing monopoly in the personal computer operating system market.

    The makers of the operating systems you make have not entered into similar agreements, or even been charged with the same offense.

    Its like asking why parole terms that apply to a particular convict don't apply to other citizens who haven't been convicted of (or even charged with) the crime that the convict was convicted of, much less subjected to similar parole terms.

  21. Apple not doing what is at issue with MS by DragonWriter · · Score: 3, Interesting

    Would "Hey guys, look at what Apple is doing!" be a valid defense?

    No. First, because "someone else is also breaking the same law" is not a legally valid defense (in some cases, it may be a strategy to avoid or reduce charges you are facing, if the other someone is perceived by the government to be worse than you, and your cooperation actually makes it easier to hold them accountable.)

    Second, because there doesn't appear to even be a colorable claim that Apple isn't doing what Microsoft is accused of doing, to wit, violating an agreement with the EU that was entered into as part of the settlement of a past antitrust action. The specific browser choice requirement Microsoft faces isn't a generally applicable rule, its a special restriction that Microsoft agreed to as part of settling charges of illegally leveraging a monopoly in the past.

  22. Re:Fine by mrclisdue · · Score: 2

    Who ARE you? Just, wow.

    +1

    The gp's comment is so stupid that it's either coming from a 3-year-old, or it's a troll.

    Or, it's coming from a 3-year-old troll, using Windows8, natch.

    cheers,

  23. Breaking a legally-binding agreement by DragonWriter · · Score: 2

    What exactly are they doing wrong?

    Breaking a legally-binding agreement that they entered into rather than raising an actual defense against charges that they violated European antitrust law.

    Apple does the same thing with OSx, and forget iOS

    Which legally-binding agreement entered into to settle past charges does Apple break with OS X and/or iOS?

  24. Re:Fine by CastrTroy · · Score: 2

    What hurts the people more? Not being able to choose a browser, or not being able to buy Windows at all? As much as we like to think that Linux is a good OS, it's not a drop in replacement for Windows. You can't just tell MS that they can no longer do business at all in your country/continent. That would annoy a fair number of your citizens and cripple many businesses. While I think that giving small fines to Microsoft isn't really that effective, telling them they couldn't sell their product at all would probably hurt the EU more than it would hurt MS. Personally, I think this whole thing is a little stupid. You've always been able to install whatever browser you wanted to on your Windows machine with absolutely no trouble. They shouldn't need to present you with a nice little screen asking which one you want to install.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  25. Linux not a drop in replacement for Windows? by dgharmon · · Score: 2

    "As much as we like to think that Linux is a good OS, it's not a drop in replacement for Windows"

    Web browsing, E-mail, Word Processing and Media Player, what's not good enough ?

    Windows 7 Vs Ubuntu 9.04, Sep 2009

    --
    AccountKiller