What the...? EU Fines Microsoft $1.3 Billion

It looks like Microsoft's massive interoperability pledge last week didn't have the desired effect. Today, regulators from the European Union (EU) announced that they are fining Microsoft $1.3 billion for failing to comply with the 2004 antitrust judgment against the company. The EU has now fined Microsoft over $2.5 billion over the years for failing to meet the conditions of this ruling.

So what was Microsoft offense this time around? According to the EU, the company has yet to produce the technical documentation that would allow its competitors in the workgroup server market to create products that more seamlessly integrated with Microsoft's products. It was also charging unfair licensing fees. But Microsoft basically issued that documentation and more last week. And that publication in some ways even exceeded the EU requirements because it is now available freely to anyone that wants it; before, companies would have to pay a licensing fee and enter into a trade secrets licensing agreement to acquire that information.

Microsoft says it is reviewing the EU's decision but notes that the European Commission (EC) said in October that Microsoft "was in full compliance with the 2004 decision, so these fines are about past issues that have been resolved." The EU's continued belligerence--EU regulators publicly mocked Microsoft's documentation publication and interoperability announcement last week before even reviewing what the company had done--is somewhat unsettling.

Even more unsettling, for Microsoft, is that the 2004 antitrust ruling is just one of three separate antitrust actions that the EU is considering against the company. It is separately conducting two other antitrust investigations against the company, involving product tying and Office document interoperability. Not coincidentally, Microsoft's interoperability announcement last week completely addresses the second of those two concerns. Given the EU's behavior with regards to Microsoft lately, however, it's unclear whether they'll see it that way.

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Yeah. They are showing just the slightest bit of bias at the moment.

Loiosh February 27, 2008 (Article Rating:

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Socialism at its best(worst)...punish people - or in this case a company - for being successful. Gotta redistribute the wealth!!!

--tayme

tayme February 27, 2008 (Article Rating:

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Unbelievable.

davidbishop@email.com February 27, 2008 (Article Rating:

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here's a thought: what if they just charged users more there, while still charging every country within the EU equally? the EC doesn't have any jurisdiction outside of the EU, and everyone in the rest of the world would be happy that their paying less....if the EC complained, what would happen if Microsoft threatened to pull their business out of the EU?

XP

Waethorn February 27, 2008 (Article Rating:

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This is, as in my opinion it always has been, blackmail pure and simple. We can all sit in the bar and argue about hoew Microsoft has done this or that, but in the final analysis I think that Microsoft has not done anything that any company has to do to stay competitive. If they did less the stockholders would accuse them of sloppy management and poor planning, and if they do more they are being "unfair" to the competition. Isn't the object of any business to beat the competition? I don't think that the EU is interested in anything except draining the most cash that they can from Microsoft. They are a sanctioned Mafia and no more. I hope that Microsoft has the guts to tell them they don't need the business in the areas they are supposed to represent, and if that happened the individual countries in the EU would be slinking to Microsoft's back door begging to make a deal.

Persing February 27, 2008 (Article Rating:

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Arrogant POS liberals.... They have screwed up everything else in their part of the world, now looking to do it to everyone else.

lantech February 27, 2008 (Article Rating:

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EU Rulings are simple;

1. DO EXACTLY WHAT THEY TELL YOU

2. DO IT EXACTLY WHEN THEY TELL YOU

Or else you will get fined

All the EU companies that have been "done" have worked this out, why does microsoft think that different rules will be applied to them?, or that it can play fast and loose with EU courts and legal processes?

I would also note that the competion commissioner has no problem with monopolies or duopolies, only when the company abuses it's power to styfill competition (e.g. blocking new enterants) do they get interested.

IPARM February 28, 2008 (Article Rating:

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"The EU's continued belligerence--EU regulators publicly mocked Microsoft's documentation publication and interoperability announcement last week before even reviewing what the company had done--is somewhat unsettling."

I don't think this is the end of Microsoft's troubles. Neelie seems to be obsessed with the company. Considering how much authority the courts have given her, Microsoft is in for a long, long battle. This whole issue is almost comical and reminds me of the 'Soup Nazi' in Seinfeld.

shark47 February 28, 2008 (Article Rating:

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Microsoft should just say Good-By to the EU and stop dealing with the countries involved. Just the threat to stop dealing with the countries would bring the EU begging Microsoft to come back because the countries within the EU would not be able to operate without Microsoft’s OS and Applications. If Microsoft would stop to exist as we know them now, the world would go into such a depression as we have never seen. It would take years before other companies could evolve to where Microsoft is now and the monetary expense would be enormous. The world has a lot to thank Microsoft for developing computing to where it is now and needs to stop punishing them for doing so. Other companies should look at Microsoft and start to run their companies in the same manor instead of punishing Microsoft with lawsuits.

wgard February 28, 2008 (Article Rating:

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If I were Microsoft, I'd threaten them that we were about to stop doing business in the EU, and would be recalling all licenses for any O/S' and Applications. Any person or business in the EU running a Microsoft product after a certain date, would be guilty of piracy, and we will be suing!

dbachor February 28, 2008 (Article Rating:

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