Microsoft hit with a $613 million fine by EU

dabuddha

Lifer
Apr 10, 2000
19,579
17
81
http://www.cnn.com/2004/BUSINESS/03/24/microsoft.eu/index.html

Talk about crazy!


BRUSSELS, Belgium (CNN) -- The European Union has found Microsoft guilty of abusing the "near-monopoly" of its Windows PC operating system and fined it a record ?497 million ($613 million).

The U.S.-based software giant has two months to review the lengthy decision and has said it will appeal.

The European Commission issued the unanimous decision Wednesday after a five-year investigation, finding Microsoft in violation of EU competition law.

The EU's antitrust authority said "because the illegal behavior is still ongoing," it would also demand changes in the way the U.S. software giant operated.

It gave Microsoft 90 days to make available a European version of its Windows operating system to PC makers without a media player.

Microsoft was also given 120 days to give programming codes to rivals in the server market, so their products can have "full interoperability" with desktop computers running Windows.

"Dominant companies have a special responsibility to ensure that the way they do business doesn't prevent competition ... and does not harm consumers and innovation," EU Competition Commissioner Mario Monti said.

"Today's decision restores the conditions for fair competition in the markets concerned and establishes clear principles for the future conduct of a company with such a strong dominant position."

CNN correspondent Jim Boulden said the EU wants a worldwide remedy and not a case where Microsoft has two operating systems: one for Europe and another for the rest of the world.

But it could take up to a year for Microsoft's appeal to be filed and it is not clear if the EU court will order the company to change its operating systems during the appeal process, which could last up to five years.

Microsoft's fine is the largest imposed by the European Commision for either abuse of a dominant position or participation in a cartel.

The biggest antitrust punishment until now was a 462-million-euro fine imposed against Roche Holding of Switzerland in November 2001, for its role in a series of vitamin cartels.

Microsoft was found guilty of monopolistic behavior in a U.S. antitrust case, but settled in 2001 with the Bush administration.

A U.S. appeals court is considering whether that landmark deal was adequate to restore competition.

The complaint against Microsoft centered on the Microsoft Media Player, which plays music and video clips. It is a free add-on to Windows.

Microsoft, based in Redmond, Washington, says this feature benefits consumers, but competitors like Real Network's player and Apple's Quicktime say it threatens their business and they want it unbundled.

At stake is Microsoft's market share in the rapidly growing home entertainment market.
EU's Monti: "Decision restores the conditions for fair competition"


At the moment, no one company is dominant and Microsoft is facing stiff competition in this arena, but the EU is concerned about the software giant's control of this market in the future.

"Sony is coming at it from the Playstation side. They see the Playstation as being the way to be the central of home entertainment. Microsoft sees it's going to be the personal computer. Some of the mobile phone companies see future generations of mobile technology as being the way it's going to come," says Bryan Glick, from Computing newspaper.

Analysts say by forcing Microsoft to offer a version of Windows XP without Media Player, consumers could pay higher costs.

"If it were to be obliged to offer versions both with and without Media Player, then that would mean we would probably have double the number of consumer PC configuration in our shops. Of course this is product that is built before it is sold," says Brian Gammage from computer consultancy Gartner.

These complaints against Microsoft are based on five-year-old technology, which is a lifetime in the technology world.

Microsoft's next version of Windows is expected to include a Web search engine that would challenge Google and Yahoo.

The EU is already looking into charges from Microsoft competitors that its latest desktop operating system, Windows XP, is designed to help extend Microsoft's dominance into new markets such as instant messaging and mobile phones.

For its part, Microsoft has accused the EU of going too far in seeking a record fine for alleged antitrust abuses, saying it is being penalized for behavior permitted in the United States and did not realize it was acting illegally in Europe.

Its rivals say though that the U.S. ruling in 2001 did not change the company's abusive behavior.
 

waylman

Diamond Member
Apr 4, 2003
3,473
0
0
wont hurt MS one bit

Nonetheless, it amounts to slightly more than one percent of Microsoft's roughly $53 billion cash on hand. On January 22 it projected expected revenues of $8.6 billion and operating income of $3.1 billion for the current quarter. REUTERS.
 

KK

Lifer
Jan 2, 2001
15,903
4
81
So what happens if microsoft doesn't pay. Does that mean the french can't buy windows?

KK
 

XZeroII

Lifer
Jun 30, 2001
12,572
0
0
The EU is just money hungry. MS was already penalized here in the states, now they just want a chunk of change for themselves.

If I were MS, I would just tell them to screw themselves and pull complete support for all Windows products from the EU.
 

XZeroII

Lifer
Jun 30, 2001
12,572
0
0
Originally posted by: waylman
wont hurt MS one bit

Nonetheless, it amounts to slightly more than one percent of Microsoft's roughly $53 billion cash on hand. On January 22 it projected expected revenues of $8.6 billion and operating income of $3.1 billion for the current quarter. REUTERS.

What will hurt is having to create a version of Windows w/o WMP and releasing the source code to it's server OS's.
 

Shockwave

Banned
Sep 16, 2000
9,059
0
0
I wanna see what tune they sing when MS says "Screw you" doesnt pay and pulls there products and support from the European market. I think that fine would quickly go away.....
Personally, thats what I'd do. I'd say hell with that and pull from the market completely, then block all European IP's from my servers. That'd put them in a bit of a bind eh?
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Originally posted by: Skoorb
It wouldn't be a monopoly if somebody else had an OS worth a damn.

Agreed 100%...well kinda. There are other OSes worth a damn... Mac's OS for example is more than adequate. Yet MS gets the shaft because their OS was adopted as "the defacto" by the general public and the VERY contingent of people now crucifying them.

WTF is MS supposed to do stop development? Stop selling? Damn them for living and realizing the American Dream.
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Originally posted by: Shockwave
I wanna see what tune they sing when MS says "Screw you" doesnt pay and pulls there products and support from the European market. I think that fine would quickly go away.....
Personally, thats what I'd do. I'd say hell with that and pull from the market completely, then block all European IP's from my servers. That'd put them in a bit of a bind eh?

hehe I've always said that. Gates shoulda done this when they fell under fire here in the US. He should have just realsed a statement saying "you know what? I have more money and power than I know what to do with and now you are threatening me? Well as of today MS is closed."

The world would have been crippled. (to bad its a public company and they cant really do that)

 

XZeroII

Lifer
Jun 30, 2001
12,572
0
0
Originally posted by: Homerboy
Originally posted by: Skoorb
It wouldn't be a monopoly if somebody else had an OS worth a damn.

Agreed 100%...well kinda. There are other OSes worth a damn... Mac's OS for example is more than adequate. Yet MS gets the shaft because their OS was adopted as "the defacto" by the general public and the VERY contingent of people now crucifying them.

WTF is MS supposed to do stop development? Stop selling? Damn them for living and realizing the American Dream.

Apple screwed themselves by making EVERYTHING proprietary and not allowing decent upgrades. OSX is their first attempt after realizing their mistake and I don't think MS should be punished for that.
 

edro

Lifer
Apr 5, 2002
24,328
68
91
This is retarded...

Since when is making a superior product illegal?
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Apple screwed themselves by making EVERYTHING proprietary and not allowing decent upgrades. OSX is their first attempt after realizing their mistake and I don't think MS should be punished for that.

Agreed 100% on that too... they TRIED to take it all on themselves and choked hard. MS did it right and was adpoted by the masses now are paying the price.

See... this is a lesson to all you entrepreneurs out there. Dont do it. If your product takes off beyond your wildest dreams and quickly becomes the defacto in its feild, you will be punished for success. STAY IN YOUR CUBE!!!!
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: Homerboy
Apple screwed themselves by making EVERYTHING proprietary and not allowing decent upgrades. OSX is their first attempt after realizing their mistake and I don't think MS should be punished for that.

Agreed 100% on that too... they TRIED to take it all on themselves and choked hard. MS did it right and was adpoted by the masses now are paying the price.

See... this is a lesson to all you entrepreneurs out there. Dont do it. If your product takes off beyond your wildest dreams and quickly becomes the defacto in its feild, you will be punished for success. STAY IN YOUR CUBE!!!!
No, no, the lesson is that once your company hits a low end value of maybe a billion, just sell it and retire :)

 

SoylentGreen

Diamond Member
Oct 17, 2002
4,698
1
0
rolleye.gif


I got a great idea for some quick easy revenue. Let's sue M$

 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Originally posted by: Kiyup
rolleye.gif


I got a great idea for some quick easy revenue. Let's sue M$

Sorry... the morons already have a monopoly on that. So I guess we should be suing the morons!
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,414
8,356
126
For its part, Microsoft has accused the EU of going too far in seeking a record fine for alleged antitrust abuses, saying it is being penalized for behavior permitted in the United States and did not realize it was acting illegally in Europe.
MS's lawyers must suck ass.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,414
8,356
126
Originally posted by: Homerboy
Originally posted by: Shockwave
I wanna see what tune they sing when MS says "Screw you" doesnt pay and pulls there products and support from the European market. I think that fine would quickly go away.....
Personally, thats what I'd do. I'd say hell with that and pull from the market completely, then block all European IP's from my servers. That'd put them in a bit of a bind eh?

hehe I've always said that. Gates shoulda done this when they fell under fire here in the US. He should have just realsed a statement saying "you know what? I have more money and power than I know what to do with and now you are threatening me? Well as of today MS is closed."

The world would have been crippled. (to bad its a public company and they cant really do that)

take your ball and go home when you're violating the rules and get sweated for it, eh?
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Originally posted by: ElFenix
Originally posted by: Homerboy
Originally posted by: Shockwave I wanna see what tune they sing when MS says "Screw you" doesnt pay and pulls there products and support from the European market. I think that fine would quickly go away..... Personally, thats what I'd do. I'd say hell with that and pull from the market completely, then block all European IP's from my servers. That'd put them in a bit of a bind eh?
hehe I've always said that. Gates shoulda done this when they fell under fire here in the US. He should have just realsed a statement saying "you know what? I have more money and power than I know what to do with and now you are threatening me? Well as of today MS is closed." The world would have been crippled. (to bad its a public company and they cant really do that)
take your ball and go home when you're violating the rules and get sweated for it, eh?

Yeap... works for me.
 

fumbduck

Diamond Member
Aug 21, 2001
4,349
0
76
Apple is complaining that Windows XP includes the Windows Media Player, and that is unfair to Apple Quicktime.


Are you telling me that none of the Apple OS's include Quicktime?
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Originally posted by: fumbduck
Apple is complaining that Windows XP includes the Windows Media Player, and that is unfair to Apple Quicktime. Are you telling me that none of the Apple OS's include Quicktime?

See that is the argument I dont get "Hey you cant include IE with Window OS because thats unfair to Netscape!!" Well WTF... then Netscape should make a OS and include their browser with it...

Hmmm I thought of a suit I could pull off using that above theory.
I really like the way the Dodge Viper looks... but thats unfair that Dodge puts THEIR motor in the chasis. What if I want a Viper body and a Chevy motor?!? Thats totally unfair Im going to sue Dodge now... BBIAB.

I see NO difference in those 2 examples. Anyone help me?

 

fumbduck

Diamond Member
Aug 21, 2001
4,349
0
76
Originally posted by: Homerboy
Originally posted by: fumbduck
Apple is complaining that Windows XP includes the Windows Media Player, and that is unfair to Apple Quicktime. Are you telling me that none of the Apple OS's include Quicktime?

See that is the argument I dont get "Hey you cant include IE with Window OS because thats unfair to Netscape!!" Well WTF... then Netscape should make a OS and include their browser with it...

Hmmm I thought of a suit I could pull off using that above theory.
I really like the way the Dodge Viper looks... but thats unfair that Dodge puts THEIR motor in the chasis. What if I want a Viper body and a Chevy motor?!? Thats totally unfair Im going to sue Dodge now... BBIAB.

I see NO difference in those 2 examples. Anyone help me?

You're onto something duder, go talk to a high profile lawyer and tell him you'll let him take the cast for 60/40 as long as he gets over 100 million.
 

Argo

Lifer
Apr 8, 2000
10,045
0
0
Originally posted by: Shockwave
I wanna see what tune they sing when MS says "Screw you" doesnt pay and pulls there products and support from the European market. I think that fine would quickly go away.....
Personally, thats what I'd do. I'd say hell with that and pull from the market completely, then block all European IP's from my servers. That'd put them in a bit of a bind eh?

That won't work. A good portion of MS revenue comes from EU. I can't even begin to explain what kinda consequences this will have on the company and its stock.
 

Homerboy

Lifer
Mar 1, 2000
30,856
4,974
126
Originally posted by: fumbduck
Originally posted by: Homerboy
Originally posted by: fumbduck Apple is complaining that Windows XP includes the Windows Media Player, and that is unfair to Apple Quicktime. Are you telling me that none of the Apple OS's include Quicktime?
See that is the argument I dont get "Hey you cant include IE with Window OS because thats unfair to Netscape!!" Well WTF... then Netscape should make a OS and include their browser with it... Hmmm I thought of a suit I could pull off using that above theory. I really like the way the Dodge Viper looks... but thats unfair that Dodge puts THEIR motor in the chasis. What if I want a Viper body and a Chevy motor?!? Thats totally unfair Im going to sue Dodge now... BBIAB. I see NO difference in those 2 examples. Anyone help me?
You're onto something duder, go talk to a high profile lawyer and tell him you'll let him take the cast for 60/40 as long as he gets over 100 million.

Jackie Childs!!!!