Microsoft Fined ¤280.5 Million
- From: Oxford <colalovesosx@xxxxxxx>
- Date: Thu, 13 Jul 2006 00:51:35 -0600
By Ann Cahill, Europe Correspondent
SOFTWARE giant Microsoft has been fined ¤280.5 million by the European
Commission for failing to share information with rivals.
This is the latest round in the commission¹s eight-year battle with the
world¹s biggest software company, which is accused of abusing its near
monopoly of the world¹s computer operating systems.
The latest fine of ¤1.5m a day results from Microsoft¹s refusal to
comply with a commission ruling in 2004.
It comes on top of the record ¤497m fine imposed then and is the first
time the commission has imposed a penalty for failing to comply with a
previous order.
Competition Commissioner Neelie Kroes said she regretted Microsoft has
continued its illegal activity.
³I have no alternative but to levy penalty payments for this continued
non-compliance. No company is above the law. Any businesses operating in
the EU must obey EU law, she said.
She could have fined Microsoft up to 5% of their daily turnover, which
would have been ¤4.28m. Instead she limited the fine to ¤1.5m a day but
will increase it to ¤3m a day from the end of July if they still have
not complied.
The March 2004 decision insisted Microsoft give complete and accurate
information to developers of work group server operating systems to
allow them function with Microsoft¹s Windows.
At present over 90% of the world¹s personal computers come equipped with
Windows and anybody wanting to run rival programmes need to buy and
install a different operating system.
Ms Kroes said they had in fact a monopoly and between 2002 and 2005
Microsoft was the only one to increase market share. They were to
deliver sufficient information by June 2004 to allow their competitors
to develop systems that could operate with Windows, but this has not
happened.
They appealed the decision but the courts said they must comply with the
commission¹s demand while awaiting a court ruling.
They warned Microsoft last November that if they did not begin to
provide the necessary information by mid-December they would face daily
penalty payments of up to ¤2m.
If royalty fees rivals have to pay for the information is too high the
commission will impose a daily fine of ¤500,000 backdated to last
December.
Ms Kroes said that in the past three weeks Microsoft had ³done an
extremely good job in providing information but she wondered why they
waited this long.
Microsoft said they would appeal the fine. It says it has 300 people
working to put together the information required and hand it over by
July 18.
Ms Kroes has warned Microsoft they must ensure their Vista operating
system can be used by rival programmes when it launches next year.
What it¹s all about?
MICROSOFT, owned by the world¹s wealthiest man, Bill Gates, has captured
the computer software market and its operating system Windows runs over
90% of all personal computers.
Most PCs come with Windows already installed so it is just a matter of a
few mouse clicks to run other Microsoft programmes such as Word, Excel
and Powerpoint.
If you want to install and run alternative non-Windows¹s programmes you
have to buy another operating system, which means none of the Microsoft
programmes will work on it.
The European Commission insists Microsoft has to share its technical
information with its rivals so they can make their programmes run
smoothly with Windows.
Microsoft has been slow to hand over the information ? so far the
commission and its expert Prof Niall Barrett has got just 50% of it.
Microsoft says the commission¹s directions were not clear, but following
a visit to Commissioner Kroes by Microsoft chief executive Stephen
Balmer the flow has improved and they aim to make the deadline of July
24 ? or even deliver the information earlier, by July 18.
.
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