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Posted on 07/12/2006 3:43:21 AM PDT by freepatriot32
BRUSSELS (Reuters) - European Union regulators fined Microsoft (MSFT) 280.5 million euros ($357.3 million) on Wednesday for defying a 2004 antitrust ruling, and warned the company to comply or face bigger fines from next month.
The tough new penalty is the first of its kind and comes on top of a record 497 million-euro fine the Commission imposed in its landmark antitrust decision against Microsoft in March 2004.
"Microsoft has still not put an end to its illegal conduct. I have no alternative but to levy penalty payments for this continued non-compliance," Competition Commissioner Neelie Kroes said. "No company is above the law."
The fine covers a period from December 16 to June 20 and was computed by multiplying 187 days of violations at 1.5 million euros per day. It fell short of a possible maximum 2 million euros per day.
Microsoft faces an increased further fine of up to 3 million euros a day if it continues not to comply with an order by July 31. The Commission requires Microsoft to give information to rival server software makers to make their applications run smoothly with Microsoft's ubiquitous Windows operating system.
The move signals the Commission's determination to force Microsoft to obey its order to share key information with rivals and a loss of patience after the company had two years to comply and used every available legal avenue to spin out the process.
The Commission's hard-line approach contrasts with that of the United States which in 2000 had similar findings against Microsoft but is still awaiting technical documents from the company as ordered by the U.S. Justice Department in 2002.
Within months after the Commission first threatened the fine, Microsoft started working quickly to come into compliance.
According to an agreed-upon schedule, Microsoft is supposed to deliver the final results on July 18.
MASSIVE EFFORT
Microsoft said it has made massive efforts to comply with the Commission's 2004 ruling and now has 300 people working to complete its package by the deadline.
It calls the fine unjustified, but says that will not slow its effort to comply. Microsoft, which has appealed every ruling against it so far by the Commission, can appeal this ruling to the European Union's Court of First Instance.
The court is already considering an underlying challenge by Microsoft to the Commission ruling, and conducted a hearing in April on it.
After years of investigation, the Commission found in 2004 that Microsoft used near-monopoly power from its Windows operating system to harm competitors making "work group servers," which run printing and sign-on services in offices.
The Commission ordered Microsoft to give rivals the information needed so their work group servers could compete on a level playing field with Microsoft's own. Microsoft must help its rivals interconnect smoothly with Windows.
Microsoft was supposed to ready the information for competitors by June 2004.
The company tried to have the sanctions suspended until it could complete a court challenge to the 2004 decision, but late that year a judge said no.
Libertarian ping.To be added or removed from my ping list freepmail me or post a message here
no company can comply to a law that keeps moving its goal post
The EuroSocialists need to steal to fund their social agenda.
Let them try to collect it.
Mixed feelings...
On the one hand, MS is the least fair, most likely to steal from a small company, modern robber barron. They use a monopoly in one area to take advantage in other areas - the very picture of an anti-trust violation.
On the other hand, they are American and this is Europe so its hard to cheer.
I'm curious. What goalposts are you saying they've been moving?
total BS, I wish MS would just PULL all its products and support from the EU and let them fend for themselves..
How the EU balances it budget. They have become the equivalent of a good o'l Southern (I grew up there) 1970s speed trap.
how are they a monopoly?
>>how are they a monopoly?<<
They have 95%+ of the desktop operating systems in the business world.
Apple bundles iTunes and iLife with its software, why cant MS bundle media player? hmmmm
so, others are available.
Good idea. Microsoft's US customers have to fend for themselves, so the Europeans should too.
Micro$haft will play chicken, but will not go to the extreme of pulling out because immediately Europe would become a Linux stronghold.
I dont have a problems with Windows.
Who forces you to buy microsoft? You can buy a dell with no operating sytem and put write your own if you want. Or install a free version of Linux. It's not a monopoly, it's a choice.
let them.
Not from OEM hardware vendors.
Because Microsoft controls the distribution channel, it controls the desktop marketplace.
Attempts by OEM vendors to ship a different OS on desktop machines has been greeted by threats from Microsoft. Representatives from Dell, Compaq and Gateway testified to that effect during the US anti-trust trial.
If you're a business and you buy a desktop PC, you're going to be paying for Windows.
That's a monopoly.
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