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Microsoft may face daily EU fine
BBC ^ | 2005/12/22 14:56:33 GMT | bbc

Posted on 12/22/2005 7:27:24 AM PST by zeugma

The European Commission has threatened to fine Microsoft up to 2m euros (£1.36m; $2.4m) a day until it gives rivals more access to its systems.

Brussels said the software giant had failed to supply adequate information about its server programs.

Microsoft has five weeks to provide improved documentation before the daily penalties are imposed.

But the group pledged to contest the EU's "unjustified" demands by whatever means possible.

'Changing demands'

"We will contest today's statement to the full extent permitted under EU law, including a full oral hearing on these issues," Microsoft legal chief Brad Smith said in a statement.

He added that the firm had done its utmost to comply with the EU's demands, but Brussels kept changing the goalposts.

"We've shipped a new version of Windows, we've paid a historic fine, and we've provided unprecedented access to Microsoft technology to promote interoperability with other industry players," Mr Smith added.

"In total, we have now responded to more than 100 requests from the Commission."

In a landmark ruling in March 2004, the world's biggest software firm was found guilty of abusing its position, hit with a record fine and told to open up its operating systems.

Data demand

Microsoft was also ordered "to disclose complete and accurate interface documentation which would allow non-Microsoft work group servers to achieve full interoperability with Windows PCs and servers".

The EU's second highest court - the Court of First Instance - later rejected an appeal by Microsoft and warned it to comply with the order by 15 December 2005, or face a daily fine.

But following two reports from a monitoring trust that has been checking information supplied by Microsoft, the European Commission says the software giant has failed to provide all the necessary detail.

It quoted the reports as saying the technical documentation was "totally unfit at this stage for its intended purpose".

Appeal plea

In September this year, Microsoft launched a second appeal against the March 2004 ruling - which included a 497m euro fine - in an effort to avoid giving more information on its server programs.

The firm argues that doing so would violate intellectual property rights.

"I have given Microsoft every opportunity to comply with its obligations," EU Competition Commissioner Neelie Kroes said in a statement as the five-week deadline was issued.

"However, I have been left with no alternative other than to proceed via the formal route to ensure Microsoft's compliance."

The EU also warned that if Microsoft failed to provide the necessary information by 25 January, the daily fines would be backdated to 15 December 2005.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4552214.stm

Published: 2005/12/22 14:56:33 GMT

© BBC MMV


TOPICS: Business/Economy; News/Current Events
KEYWORDS: convictedmonopoly; eu; fines; microsoft; monopoly
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THis may cost Microsoft a fair penny, but it's still pocket change to them.
1 posted on 12/22/2005 7:27:26 AM PST by zeugma
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To: zeugma

Exactly. Bill Gates should just buy the EU and be done with it.


2 posted on 12/22/2005 7:33:09 AM PST by twoputt
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To: zeugma

Pocket change or not it's still BS.


3 posted on 12/22/2005 7:33:53 AM PST by VeniVidiVici (What? Me worry?)
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To: rdb3; chance33_98; Calvinist_Dark_Lord; Bush2000; PenguinWry; GodGunsandGuts; CyberCowboy777; ...

4 posted on 12/22/2005 7:34:35 AM PST by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: zeugma

Typical socialists--dictate from on high rather than let the marketplace decide. The EU has their own crafty Norwegian that produced an open source OS--mandate its use if they must have open source software.


5 posted on 12/22/2005 7:37:12 AM PST by randog (What the....?!)
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To: zeugma

Microsoft haters, rejoice! Private industry and other supporters of capitalism, bend over!


6 posted on 12/22/2005 7:38:36 AM PST by Doohickey (If you choose not to decide, you still have made a choice...I will choose freewill.)
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To: randog
The EU has their own crafty Norwegian Finn that produced an open source OS

Fixed it.

7 posted on 12/22/2005 7:39:53 AM PST by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: zeugma

The people of the EU are well within their rights to not buy Microsoft software. Let em eat cake.


8 posted on 12/22/2005 7:42:00 AM PST by contemplator (Capitalism gets no Rock Concerts)
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To: ShadowAce

Thanks. I must have been overcome with a bout of Scandilexia...;^)


9 posted on 12/22/2005 7:42:13 AM PST by randog (What the....?!)
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To: zeugma

Pull out of the EU; make them come up with their own products for once. Lazy sobs.


10 posted on 12/22/2005 7:43:16 AM PST by Porterville (Keep your communism off my paycheck)
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To: zeugma

I wish MicroSoft would just pull out and let them use open source software for a while. If they want to set the rules, let them make their own software.


11 posted on 12/22/2005 7:48:49 AM PST by Cicero (Marcus Tullius)
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Most people will just shrug and say, MS have a deep pocket, so who cares. This is an atttempt by EU to kill Microsoft


12 posted on 12/22/2005 7:53:51 AM PST by 4rcane
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To: Cicero

I think Microsoft should consider pulling out of the EU and let their computer systems become outdated as they struggle to replace the Microsoft OS. Microsoft may lose short term business, but the EU would be hardpressed as the competing US and Asian corporations upgrade their computers every 18 months on Microsoft OS and hammer the hamstrung EU companies. It would end this EU attempt to access US trade secrets via commissions.


13 posted on 12/22/2005 7:55:01 AM PST by Fee (`+Great powers never let minor allies dictate who, where and when they must fight.)
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To: bushbuddy

Or Microsoft could unleash viruses all over the EU and bring them to their knees. Oh wait, they're already doing that.


14 posted on 12/22/2005 7:56:05 AM PST by caver (Yes, I did crawl out of a hole in the ground.)
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To: 4rcane
This is an atttempt by EU to kill Microsoft

It's an attempt by the EU to have a cash flow to support lavish living in Brussels.

15 posted on 12/22/2005 7:56:55 AM PST by Glenn (What I've dared, I've willed; and what I've willed, I'll do!)
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To: randog
I must have been overcome with a bout of Scandilexia...;^)

LOL! That's good. I like that line.

16 posted on 12/22/2005 7:57:51 AM PST by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: VeniVidiVici
I don't know the particulars of everything the EU is asking for from MS, but in general, I believe that interoperability is good for everyone but microsoft. The majority of what the EU is pushing for is the opening up of APIs and protocols to allow other products to operate and integrate smoothly with microsoft products.

Samba has spent years attempting to provide connectivity to windows resources from non-windows computers such as those running UNIX, Linux, IBM System 390, OpenVMS, and other operating systems. This interoperability is a good thing, and it has taken much work to implement because the protocols used by microsoft are opaque, and must be reverse-engineered after every change. This is a waste of resources IMO, that could be better applied elsewhere.

17 posted on 12/22/2005 8:00:55 AM PST by zeugma (Warning: Self-referential object does not reference itself.)
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To: Cicero

I wish MicroSoft would just pull out and let them use open source software for a while. If they want to set the rules, let them make their own software.

This would be great.....unfortunately Gates is far too polically correct to ever do the right thing.


18 posted on 12/22/2005 8:11:41 AM PST by newcthem (9/11- not terrorists - just troubled youths.)
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To: Fee
I think Microsoft should consider pulling out of the EU and let their computer systems become outdated as they struggle to replace the Microsoft OS.

Then they simply switch to Mac or Linux. It'll be a bit of a migration, but nothing that can't be overcome. Microsoft will NEVER allow its virtual monopoly to be broken, and pulling out of the EU would blow that there, and show to the world that you can run without Microsoft. I don't think that would be acceptable to Microsoft.

19 posted on 12/22/2005 8:15:51 AM PST by antiRepublicrat
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To: Fee
.. this EU attempt to access US trade secrets via commissions.

Any other companies that you know of consider interoperability information as a "trade secret"?

And which part of convicted monopolist do you not understand?

20 posted on 12/22/2005 8:23:45 AM PST by TechJunkYard (Don't be afraid of it: MERRY CHRISTMAS!)
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