Thursday, February 28th 2008
EU Fines Microsoft Record 899 Million Euro
The European Commission fined yesterday US computer giant Microsoft for defying sanctions imposed on it for anti-competitive behaviour. Microsoft must now pay a record 899m euros ($1.4bn; £680.9m) after it failed to comply with a 2004 ruling that it abused its position. The ruling said that Microsoft was guilty of not providing key code to rival software makers. EU regulators said the firm was the first to break an EU anti-trust ruling. The fines come on top of earlier fines of 280m euros imposed in July 2006, and of 497m euros in March 2004. "Microsoft was the first company in 50 years of EU competition policy that the Commission has had to fine for failure to comply with an antitrust decision," Competition Commissioner Neelie Kroes said in a statement. "As we demonstrated last week with our new interoperability principles and specific actions to increase the openness of our products, we are focusing on steps that will improve things for the future," Microsoft responded.
Source:
BBC News
74 Comments on EU Fines Microsoft Record 899 Million Euro
On the side note, it's about time someone does something against damn Microsoft monopoly.
"The European Union (EU) is a political and economic community of twenty-seven member states, located primarily in Europe."
en.wikipedia.org/wiki/EU#Legislation
I don't think MS should have to share a single line of their code. It's called proprietary for a reason. Now, if they choose to do so of their own free will, that's absolutely great, but I don't think anyone else should have the right to say what they do with their own intellectual property.
If I were MS, not only would I refuse to pay the fine, I would counter with the threat to pull completely out of the European market. What would the EU do then?
Your leaders will not allow you to use our software unless we give the code away, so untill your leaders become reasonable you are now responsible for writing your own updates.
Microsoft engages in trade within the european union voluntarily, therefore has to respect the laws there.
You cant go to another country and break their laws saying "oh, well, we dont have that law where Im from"
No, USA laws do not apply to the EU. Im no fan of the EU, they are money grabbing, backstabbing and riddled with corruption. But law is law. You have to abide with trade laws etc if you want to trade with other parts of the world.
Thats sort of like a hostile invasion lol
EU companies would not appreciate that imo.
Meh.. but im no politician
1./ If you were a software developer, and you were having some difficultly getting something to work in Windows, and needed a "how it works" technical note, then MS charged you a minimum of 2.98% of your revenues just so you could look at some technical notes. (communication information).
THEN
2./ You needed to pay another 3.87% royalty fees on top.
Net net... just to be able to use Windows platform and be on the same playing field as MS programmers, you had to pay 2.98+3.87=6.85% of your REVENUES (not profit) to MS. Remember this has NOTHING TO DO WITH RELEASING SOURCE CODE AND IP. Just access to information on how to use the user interface and link with data objects over servers.
3./ So, quite rightly, the EU said, wait a minute... that is an insane amount of money. You need to fix it, because, defacto, that is usury, and misuse of dominant position.
4./ MS says "fxxk u" we're american and just like our gvt can do whatever we want
5./ EU say "oh no you cant, not here mate". Fix it, asap, and we will forgive you. Here is a deadline and all will be ok.
6./ MS says "lets hope they forget", and didnt deliver
7./ EU says we are serious, heres a fine (first fine)
8./ MS ignores the EU fine and uses lots of lawyers to delay and slow down the process. Remember that MILLIONS of dollars spent on their lawyers was still less than the interest on the money. Moreover, the longer they had the money in "the war chest", the more slosh fund they had for acquisitions.
9./ MS gets a SECOND fine on top for ignoring the conviction. If MS was a "person" not a company, then MS would have "gone to jail" for not paying fines, but since it is a company, the fine gets (essentially) DOUBLED. That's, generally, how it works in EU. Do as you are told, and on time, or the punishment gets more severe.
Did you know that MS made more than $44 billion revenues in 2006? So the original fine was a very small percentage of MS revenues. In fact A LOT LESS THAN the percentage MS charges for its royalty and communication information that was the issue!
>> Saying that MS should shut down their operations in Europe is asinine. Why would any company do any action to cut off more than 30% of its revenues? So, for the sake of ONE $500 million fine, you would cut of income of $15,000 million, this year, and each and every year in the future? Are you an investment genius?
Now, using methods like threating distributors if they carry a competing product, and other actions that purposely disrupt the supply chain of a competitor, are unacceptable.
I agree with candle a bit. The EU is starting to look a bit red.
Microsoft is ramming other companies, denying a true competition and eventually, disrupts the "free" market. Microsoft have alot of money, too much money, and they use it to ram the other players every time someone raises his head. you know, other developers and firms need work and profits too. Microsoft makes sure all of this potential profit goes to them. YES they have the "best" OS in the world atm, but they mess with other people's work and deny any real fight in this market. so yeah, that's capitalism for you :rolleyes: destroy the competition and rule as you wish. blah.
If it wasn't for the habit of using windows, i'd be on a different OS now.
If you trade in the world community,you have to abide by the rules.
also agree i do that MS doing buisness in EU voluntarily is, as such should accept the laws set forth the EU by.
in this case being the EU correct, fines should MS pay, if notliking the fines ms should do as ruled, or pull out of markets to them unfriendly are.
EU could ms products drasticly tax, loose market to linux/bsd/mac then would ms, make them think twice about lawbreaking that would.
WileE, so you go to europe and break their laws, expect to get off scott free do you because you from there are not?
respect the EU for standing up to ms i do, agree with them i do not alwase, but respect that unlike US govt and most others around world, have balls to stand up to ms they do, tell ms "you are wrong" and "you cant do that here" a lot of gutts takes, ms more money has then most EU countrys.....little to big are they, need some hummility do they.
cheers
DS
Your friendly mod
another blow to the evil corporation that has us all in a stranglehold. a few more of these and maybe linux will get directx support.
my 2 cents.....