Microsoft slammed by European Commission with $1.35b fine

It's a good thing Microsoft has tons and tons of money, because they keep finding themselves in a position where they've got to pay out -- big time. Such is the case today, where the European Commission has fined the monolithic company €899 million (or $1.35 billion) due to failure to comply with a 2004 ruling on monopolistic business practices. The Commission found that the folks in Redmond had been guilty of -- gasp! -- freezing out competition by not providing "vital information" to rival software companies. This isn't the first time it's had to pay, as the company already dropped $357 million on the case back in 2006. "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," said Competition Commissioner Neelie Kroes. Perhaps Ballmer and co. saw this one coming when they went "open" last week, though we're fairly confident this kind of fine carries only the slightest sting for the software giant.

[Thanks to everyone who sent this in]

[Kogmo @ Feb 27th 2008 8:30AM]

I make my living developing & supporting programs created off of MS programming languages and platforms. I make my fair share of licensing fees towards MS but these expenses are paltry compared to the income I derive from it. Although I am not making a competing OS (and I bet they are a great minority to the horde of programmers out there) I am no less bothered to give credit where credit is due. If they paved the road towards me earning my living in this world, you bet I am willing to pay the toll. But for heaven's sake, this fine is just too much. And where will the money go? Will they distribute it to programmers worldwide?

[fred @ Feb 27th 2008 9:45AM]

The only people that made a stink are Open Source zealots and anti Microsoft loons.

They used the government to try to take down the competition. No amount of high-minded BS rhetoric, and "low rank" voting can cover that up.

[Hax Or @ Feb 27th 2008 10:02AM]

You're hopeless.

[Chewedtoothpick @ Feb 27th 2008 10:14AM]

The EU just looks at this as free money to line the pockets of the politicians with.

Haven't you all learned that taxes, fines and all other governmental levies are nothing more than legalized theft? And most of you want more?

[Chewedtoothpick @ Feb 27th 2008 10:16AM]

PS:

Thank you for being an honest and thankful person. I too not once hesitated to pay licensing fees where they were do when I was coding.

If you don't have a financial motivation to create and maintain software, then what motivation is there? Honestly, only so many people will maintain their software, and none so well as Microsoft.

[technophobe @ Feb 27th 2008 11:24AM]

The money will no doubt be used the fund the layers of bureaucracy within the EU. All because the failures that run the EU are against success.

[klll @ Feb 27th 2008 12:58PM]

You seem to think that if there was no Microsoft, there would be no good word processors, no good programming frameworks, IDEs and SQL servers.

It's not true. We've got MS vs crap because MS killed off all competitors and now they dictate prices and quality.

In healthy competetive environment we could have cheaper, better and interoperable software (not neccessary open source - it has nothing to do with it).

[Scott @ Feb 27th 2008 2:06PM]

Wow some of you are so clueless about how businesses and software markets work that it's ridiculous.

[E71 @ Feb 27th 2008 8:08PM]

The anti-trust BS that the EU is throwing around is just a front for politics. It's the EU's way of slowly draining the U.S. economy.

I think only the country in which a company is registered should a company be liable for any such fines, not that I believe in these anti-trust hearings anyway.

[Hung @ Feb 27th 2008 10:35PM]

@ klll

They didn't "kill off all competitors," we consumers did. If Microsoft were a poorer OS (like ZETA) than it would die out. Do you think Redhat, OSX, Solaris, etc. got to be industry leaders because they weren't as good as other operating systems? What about Ubuntu, KDE, and FreeBSD? I'm sure they must have killed Xandros and gOS.

[Dr. Evil @ Feb 28th 2008 10:15AM]

Not a huge fan of MS ...

But screw the EU pocket picking socialist.

[Lein @ Feb 27th 2008 8:31AM]

I knew it wouldn't take long for this showed up here.

Go Engadget, let's nail those sons of bitches to the cross! What's wrong with them, trying to actually make MONEY off of what THEY create... the NERVE!

[BrianM @ Feb 27th 2008 10:50AM]

Amazing how no one can choose an alternate OS like linux and all of its varients, Apple, or even alternatives like BeOS. Its not even like thos OS's come with a browser of their own choosing either, Also amazing how little interoperability exists with things like Open Office being able to open and save files for use with MSFT programs, samba for accessing microsoft server shares, or even microsoft's own services for unix provided as part of the OS free. Microsoft is evil and nothing like a wholesome EU based company like DaBeers.

[Quai-loh @ Feb 27th 2008 8:32AM]

You would almost think that we Europeans have something against MIcrosoft,.....almost. At least that is one "speedingticket" that Bill is glad he doens't have to pay anymore ;-)

[treacherous @ Feb 27th 2008 8:32AM]

Ugh, anti-capitalist European socialism makes me so mad! Who are these regulators to dictate how much a company may charge? A company may charge however much they choose to charge - their CUSTOMERS will decide if it is too much!

[Spamslurpee @ Feb 27th 2008 8:37AM]

It has nothing to do with the price of their products.

[steve @ Feb 27th 2008 8:41AM]

I see your point, but if microsoft had allowed competition, it would have cost them alot more than £1bn. Capitilism is working, its just not so obvious.

[treacherous @ Feb 27th 2008 8:51AM]

Low Ranked? Ouch. I'm hurt, guys. ;)

And when did I say it was about the price of their products? I know full well that it is about licensing fees, but thank you for that incredible insight.

[Jonxman @ Feb 27th 2008 8:56AM]

Capitalism is working, yes, but measures must be in place to make sure the market works - to make sure competition is possible. Otherwise a strong company can dominate a market until there is no market to speak of. That is always bad for consumers and it's always bad for the economy.

It's like democracy, really. If there weren't laws in effect to keep an administration from declaring themselves 'president' indefinitely, democracy would be gone..

[treacherous @ Feb 27th 2008 9:06AM]

What you Europeans that are giving those of us that are not happy with this ruling are not realizing is that every dollar of this fine (should Microsoft choose to pay it) will be passed on to us, the consumers, in the price of their products. If you think paying $239+ for a copy of Windows today is expensive, just wait...

[happy_penguin @ Feb 27th 2008 9:07AM]

Anti competitive monopolistic practices make me mad. :)

[Yubastard @ Feb 27th 2008 9:53AM]

damn, people like you make me stop reading the comments... u suck

[phanbouy @ Feb 27th 2008 1:25PM]

Good sweet Buddha does this topic bring out the rabid demagogues. Back to your cages, all of you! I'm shipping you to obedience school!

[JJV @ Mar 3rd 2008 10:35AM]

Read much?? It clearly states that they had failed to comply with monopolistic policies on competitive pricing. For all the people who are calling the EU anti-capitalist and calling them socialist. IT IS THERE POLICIES! IF YOU CAN'T COMPLY STOP SELLING.

[IkeTurner @ Feb 27th 2008 8:33AM]

MS slams Europe on a daily bases by selling Vista +50%$ than in the US

[Walter @ Feb 27th 2008 10:27AM]

They are not slamming them, it's these decisions that make the cost of doing business higher in these regions. They are trying to make them responsible by placing the cost where it belongs. If you want more regulation and rules, it will cost more, IT ALWAYS DOES. The only monopolies I would ever even CONSIDER regulating are natural monopolies, not these. Just come up with a better alternative and the people will regulate them all day.

And don't give me that Linux is better... It's more than just about a Kernel and OS design; although they are certainly important and fundemental. Microsoft gets that and Linux "community" doesn't.

[IkeTurner @ Feb 27th 2008 12:10PM]

That's what I was trying to say..

[Balls @ Feb 27th 2008 8:53PM]

Uh, no, the EU adds a bunch of taxes on all foreign imports.

Why do you think Apple products, Sony Products, Canon products are all more expensive in the EU?

[broli @ Feb 27th 2008 8:33AM]

Haha, this isn't america baby, where the rich rule them all and are allowed to do what they please. One wrong move and the EU gets you...oh and thanks microsoft for being able to build new roads in new established EU countries.

[Deven @ Feb 27th 2008 9:12AM]

Agreed, the EU people are in control EU, and the corporations are in control in the US.

[Sebastian @ Feb 27th 2008 9:14AM]

Great, new roads are comming. My pavement looks rather old in front of my house.

[treacherous @ Feb 27th 2008 9:21AM]

Oh no! The evil rich will kill us all and eat our babies!

[Cal @ Feb 27th 2008 12:28PM]

And it's nice of the EU to start sucking cash out of MS, hopefully England will stop funding French farmers now...

[Balls @ Feb 27th 2008 8:54PM]

Yeah, good luck during WW3, fuck nuts!

[Iphone using MicroSerf @ Feb 28th 2008 4:25PM]

No problem .... he BTW we should let you know we are raising the price on all MS products in EU by 30% ..... hey thanks for the 30b USD

Dippshits just gave their politicans a raise

[Saad Rabia @ Feb 27th 2008 8:38AM]

Burn in hell European Commission! Burn with jealousy and greed! F**king losers. :|

[Jonxman @ Feb 27th 2008 8:40AM]

LOL, idiot.

[Saad Rabia @ Feb 27th 2008 8:42AM]

Jonxman, dude, man, ehhh. God Dammit!

[Zut @ Feb 27th 2008 8:46AM]

WTF?!

...And some people wonder where Anti-Americanism comes from!!

[j.d.ripper @ Feb 27th 2008 10:10AM]

IE6 was released in 2001. Do you know how long it took for IE7 to be released ?
Do you know what "pushed" MS to finally release a new version? A little something called Firefox.
Why wasn't there another competitor to IE before ?
Well netscape tried, but you can't beat free and bundled with windows.

Moral of the story, no competition, IE6 stagnated and remained around for years .... a little competition and we all benefited.

[Saad Rabia @ Feb 27th 2008 10:24AM]

So j.d.ripper, Mozilla should bundle Opera with FireFox! because it is unfair that people who download FireFox forget about Opera web browser thus creating unfair competition.

Another good solution for Microsoft is to bundle 17 web browsers with any version of Vista, and 5 other email organizers and 12 media players and 5 Instant Messengers in order to create fair competition.

Great idea, ha?

[ultramegatron @ Feb 27th 2008 12:24PM]

Do you know what "pushed" MS to finally release a new version? A little something called Firefox.

What's the point of your story? IE6 stagnated, so a new product began to chip away at its market share. Mozilla.org didn't need the US government to come in and bail them out, did they? The market worked fine on its own.

[klll @ Feb 27th 2008 12:59PM]

@Saad Rabia: bundling is illegal *if* it abuses dominating position in another market.

Now focus:
1. This does not mean that bundling is illegal.
2. This does not mean that dominating market is illegal.

If both bundling and dominating another market are true, *then* it's illegal.

Get it? Neither Mozilla nor Opera nor Apple are in such situation, so they can bundle (or not bundle) what they please.

[Carlos @ Feb 27th 2008 2:34PM]

First of all I am a Firefox user, web developer and now work for a company that made interective media for firefox including its site design and killer bot.

But no, that is not true IE next release after IE6 didn't came out on time because of regulations and changes to vista to comply with those regulations and some misses from microsoft. Not because of that little thing Firefox. That said I think firefox is better than IE7 because its simplicity, inline search and firebug extension.

But dont blend reality and get your facts right.
Microsoft decided to launch a version before vista because Firefox market gains but they had that version working years before and have to keep it quietly because of the netscape case lost! and thats the real true.

[Spamslurpee @ Feb 27th 2008 8:43AM]

http://en.wikipedia.org/wiki/Antitrust

[egokick @ Feb 27th 2008 8:45AM]

ugh socialist thugs stealing from the "free market" again... its the thugs in government like this that fuck up the market and stifle competition.

[Zut @ Feb 27th 2008 8:48AM]

Errr.... no, its MICROSOFT that has been stifling competition. That what this was all about. Have you even read it?!

[itlnstln @ Feb 27th 2008 3:48PM]

Uggh. U.S. Capitalist thugs who stifle healthcare and retirement with lame benefits packages and no fallback on nationalized solutions driving people to the brink of poverty. To each his own...

[Timmy @ Feb 27th 2008 8:52AM]

I can wait for them to go after Apple with all their anti competitive practices, Itunes, Ipods, non-clone CPUs, OSx all of which are relatively closed platforms, whats good for the MS is good for apple, ca-ching

[Timmy @ Feb 27th 2008 8:54AM]

Should be can't