EU fines Microsoft record $1.35 billion

[Cyrus_the_virus]

BRUSSELS (Reuters) - The European Commission fined Microsoft a record 899 million euros ($1.35 billion) on Wednesday for defying sanctions imposed on the software giant for antitrust violations, far exceeding the original penalty.

The Commission, executive arm of the European Union, has now fined Microsoft 1.68 billion euros for its original violation and for failing to comply with sanctions, more than any other firm. It said no other company had ever ignored sanctions.

"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.

The company said in a statement that the fines concerned "past issues" and it was now looking to the future.

The Commission said in a landmark 2004 ruling -- upheld by an EU court last year -- that Microsoft had withheld needed interoperability information to rival makers of "work group server" software.

The software, which operates printers and sign-ons for small office groups, must interoperate with desktop Windows machines. The Commission found Microsoft denied vital interoperability codes to rivals, whose market share then shriveled, to be replaced by Microsoft's own product.

Microsoft was ordered to provide the information. It agreed to do so but imposed high royalties on grounds of innovation.

The Commission found instead that the information lacked much innovation and was more like a lock to which Microsoft was withholding the combination. It decided the royalties were unreasonable.
"I hope that today's decision closes a dark chapter in Microsoft's record of non-compliance with the Commission's March 2004 decision," Kroes said.

After fining Microsoft 497 million euros in 2004, the Commission fined the company another 280.5 million euros in July 2006 for failing to comply with the sanctions.

The latest decision picks up from where that fine left off, for the period from June 21, 2006 until October 21, 2007. After that, Microsoft agreed to reduced royalties and to provide needed information.

"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," the Microsoft statement said.

Last week, knowing a large fine was imminent for its failure to provide interoperability information, the company publicly promised to publish critical information so rival programs worked better with Windows.

The Commission took a wait-and-see attitude. It said Microsoft had several times made similar promises, only to have no real effect.

Microsoft still faces other potential action by the Commission.

In January, the EU executive started two new formal antitrust investigations against Microsoft -- one relating to interoperability, and one relating to the tying of separate software products.

Source: Reuters
(Reporting by David Lawsky; Editing by Dale Hudson)

[din]

Good, hope they start thinking on - Ethical Business - at least in the future ..

[Gigacore]

whoa.. thats a good lesson for microsoft.

[Hitboxx]

Served it right, now expect MS to double the prices of all its products in Europe.

[nvidia]

OMG! Thats a lot of money... So where will all the money go after MS pays the fine?

[Cyrus_the_virus]

Hmmmm.. it's all starting to make sense why they recently decided to open up certain code...

[Hitboxx]

OMG! Thats a lot of money... So where will all the money go after MS pays the fine?

You believe MS will just pay that? Wait and watch!

[naveen_reloaded]

EU is really hard on standards....

[anandk]

Anyone know how much MS has paid in sauch fines in the last 12 months !?

[casanova]

Reading all this charges EU puts on MS, I feel that EU runs on the fines paid by MS. Something like MS (R) EU (R)

[MetalheadGautham]

thats what you get for trying to abuse monopoly.
we never see intel getting fined like this. Instead, they get appritiated.
Thats because intel opens up unlike microsoft.

[mediator]

Originally Posted by casanova

Reading all this charges EU puts on MS, I feel that EU runs on the fines paid by MS. Something like MS (R) EU (R)

Its like someone say, "Govt runs on the fines paid by a professional thief"!

[din]

Originally Posted by anandk

Anyone know how much MS has paid in sauch fines in the last 12 months !?

As they never keep their promises, they never pay fines too ? Thats so bad.

[iMav]

Originally Posted by MetalheadGautham

we never see intel getting fined like this. Instead, they get appritiated.
Thats because intel opens up unlike microsoft.

if im not wrong it was this very forum where the news of amd filing a suit against intel in india was posted

[infra_red_dude]

Intel not getting fined? Intel is a big bad company, Metalhead!!! And where did they "open" things up?

Btw, I thot defaulting fines was prevalent only in our country. Never knew it was a norm in EU too!

[din]

Originally Posted by iMav

if im not wrong it was this very forum where the news of amd filing a suit against intel in india was posted

I think you meant this ?

AMD sees Intel bias in tenders, to move Competition Commission of India

But that was against bias in tenders and was not directly against Intel (but against Govt Tender Process) ?

[iMav]

Originally Posted by din

I think you meant this ?

AMD sees Intel bias in tenders, to move Competition Commission of India

But that was against bias in tenders and was not directly against Intel (but against Govt Tender Process) ?

yes & intel has been complained against by amd on numerous occasions fro stocking up retailers/distributors with their stuff and blah blah

[Cyrus_the_virus]

Originally Posted by din

I think you meant this ?

AMD sees Intel bias in tenders, to move Competition Commission of India

But that was against bias in tenders and was not directly against Intel (but against Govt Tender Process) ?

I guess he also meant this:

EU raids Intel's Munich offices, also targets retailers

The EU's antitrust investigation against Intel took another step forward today as European Commission (EC) officials conducted surprise raids on the company's Munich offices. The EU, however, didn't stop there; German electronics retailer Media Markt-Saturn was also raided, as was British retailer DSG International Plc. Intel is currently preparing hearing next month in Brussels on the allegation that it abused its dominant position in the market in ways that illegally harmed its competitor, AMD.

"Commission officials carried out unannounced inspections at the premises of a manufacturer of central processing units and a number of personal computer retailers," a Commission spokesperson said in a statement.

Intel acknowledged that a raid did take place, as did the two other companies in question, but there's no information as of yet on what material was or was not taken. This isn't the first time that Media Markt-Saturn has been directly involved in an Intel antitrust action—the company's close relationship with Intel is already under investigation. Like the Dell of long ago early 2006, Media Markt-Saturn currently sells no AMD-based equipment. This, in and of itself, is not a crime—but AMD's allegations paint Media Markt-Saturn as the recipient of any number of sweetheart deals and/or incentive packages in exchange for exclusively carrying Intel products.

The raids are just another reminder (if Intel needed it) of just how willing the EU is to play hardball when it comes to international antitrust investigations. Thus far, Intel's public response to the EU's allegations have been limited, though the company does maintain that any and all of its actions were "lawful, procompetitive, and beneficial to consumers." AMD, of course, would characterize Intel's behavior over the past eight years or so quite differently.

The EC's decision won't directly impact AMD's antitrust complaint against Intel in the United States, but it could become the third entity (after South Korea and Japan) to find evidence of anticompetitive behavior on the part of the Santa Clara chipmaker. Such findings would have no direct legal impact on AMD's US-based case against Intel, but could bolster AMD's fortunes down the road.

Source

[iMav]

^^ +1 yes

[din]

Yes, Monopoly and un-ethical business practices sux, let it be software or hardware.

[MetalheadGautham]

I just said that Intel is less bad compared to M$, atleast to the end user. ANd AMD was not suing intel but the Govt of India, who were terribly ignorant of AMD. I too know that intel is bad in quite a few ways, but they did make OSS drivers(though it was just to woo customers).

While my heart goes out to AMD, I still have to concider only Intel because of the fact that they are better in most respects. In the case of linux vs windows, I am fully with linux because its both better and likable(for openness and similar reasons as AMD). But in intel vs AMD's case, its a lot harder. Intel looks better in almost every angle. All of their products are better and more *usable*(oss drivers) than their AMD counterparts. Intel has OSS drivers, is more OCable, is better than AMD even in low end range(E21x0), is more power effitient(45 nm) and shows better performance.

My regards to Hector Ruiz and I wish him the best of luck to launch products better than Intel ones, and bring back the era when the Athlon X2 range was just launched. but for now, I have to stay with intel. Sorry.

@mods: sorry for going off topic

on topic: I think M$ deserves such fines mainly because the only way they are trying to survive is by marketing gimmiks using their monopoly. They(atleast for me) are not even bettering their rivals to an extent that makes investing in M$ worthwile. Intel(though more sinister) is not like that. They are better than their competition.

[infra_red_dude]

Originally Posted by MetalheadGautham

I just said that Intel is less bad compared to M$, atleast to the end user. ANd AMD was not suing intel but the Govt of India, who were terribly ignorant of AMD. I too know that intel is bad in quite a few ways, but they did make OSS drivers(though it was just to woo customers).

What OSS drivers are you talking about? The whole x3000 range is blacklisted for 3D acceln. only coz Intel refused to open up!

Ontopic: Ok, so whats EU gonna do next? Fine MS again for delaying to pay the fine??

[MetalheadGautham]

Originally Posted by infra_red_dude

What OSS drivers are you talking about? The whole x3000 range is blacklisted for 3D acceln. only coz Intel refused to open up!

As long as my GMA 900 runs well, I am happy

Originally Posted by infra_red_dude

Ontopic: Ok, so whats EU gonna do next? Fine MS again for delaying to pay the fine??

that would be an overkill