EU fines Microsoft record $1.3 billion for overcharging rivals

“The European Union fined Microsoft a record $1.3 billion Wednesday for the amount it charges rivals for software information,” Aoife White reports for The Associated Press.

“EU regulators said the company charged ‘unreasonable prices’ until last October to software developers who wanted to make products compatible with the Windows desktop operating system,” White reports. “The fine is the largest ever for a single company and brings to just under $2.5 billion the amount the EU has demanded Microsoft pay in a long-running antitrust dispute.”

“Microsoft immediately said the issues for which it was fined have been resolved and the company was making its products more open,” White reports. “The fine comes less that a week after Microsoft said it would share more information about its products and technology in an effort to make it work better with rivals’ software and meet the demands of antitrust regulators in Europe.”

White reports, “But EU Competition Commissioner Neelie Kroes remained skeptical and said Microsoft was under investigation in two additional cases. ‘Talk is cheap,’ Kroes said. ‘Flouting the rules is expensive.’ Microsoft’s actions have stifled innovation and affected millions of people around the world, Kroes said.”

Full article here.

[Thanks to MacDailyNews Readers “Ampar” and “Brawndo Drinker” for the heads up.]

MacDailyNews Take: It sure is nice to see somebody enforcing laws and punishing Microsoft for illegal activities, isn’t it? It’s too bad that the U.S. let them off the hook with barely a slap on the wrist.

44 Comments

  1. > “The fine comes less that a week after Microsoft said it would share more information about its products and technology in an effort to make it work better with rivals’ software and meet the demands of antitrust regulators in Europe.”

    I guess the writing was on the wall, eh? MW: “hit.”

  2. @@Gandalf

    I think the point is that even those engaged in free market activities (business people, let us say) are unwilling to adhere to a truly laissez faire, free market philosophy. Instead, they are all too willing to call in governmental power when they can use it to injure competitors or gain a competitive advantage (i.e., the East India Company). Thus, others (consumers, let us say) seek a countervailing use of governmental power to redress their grievances. In short, there is no such thing as a totally free market economy and there never will be. Most, if not all, people are incapable of being ideologically pure and consistent. We are all too willing to call in a tiger (government) to chase out a dog (corrupt business).

  3. It sure is nice to see somebody enforcing laws and punishing Microsoft for illegal activities, isn’t it? It’s too bad that the U.S. let them off the hook with barely a slap on the wrist.

    Riiiiight……. And if it was Apple getting fined then the EU would be the largest assembly of corrupt, socialist scumbags on earth (which is actually a fact). Why don’t you try something less predictable, MDN? Your anti-Microsoft gibberish is sometimes so vivid that I can visualize you foaming at the mouth, and the spittle on your computer screen as you type.

    And besides, this story has exactly what to do with “Mac Daily News”? This site not only loads slow, the “news” isn’t even news.

  4. I’d like see this trend extend toward breaking down the current ability of companies to leverage unending patents. Unduly long patents are very much stifling the natural course of development. Just because one company got to the market first doesn’t mean nobody else ever thought of it.

  5. OK, Jay-Z, a little elaboration couldn’t hurt.
    a) iPhone sales: one partner per country, locked in
    b) OSX: not allowed to run on non-Apple hardware
    c) iPhone programming: not (currently) allowed
    d) pricing: all prices set by Apple, discounting will cost you

    All the above based on, and in support of, Apple’s monopoly on their products. iTunes and Safari are allowed on Windows – for FREE – because Apple wants it that way, to grow the iTunes Store and to impress potential switchers. There’s no good reason Apple won’t allow OSX on non-Apple hardware, as long as they are not asked to support the use. There’s no reason Apple MUST break anything coded for the iPhone with each new update.
    Oh … and thanks for obliterating your (supposed) obscenity, which Rude Mac might well have done – but didn’t.
    Dave

  6. The PC trolls can’t resist!

    And that dick dlmayer is as clueless as ever.

    A monopoly is not created automatically when a company has a majority market share. A monopoly is created when that company illegally manipulates others (customers, competitors) in the market to gain or maintain their majority market share.
    Like Micros**t has done over and over.

    Quote, “Microsoft’s actions have stifled innovation and affected millions of people around the world.”

    Couldn’t have said it better myself.

  7. Operative word: Illegally.

    Canon controls its hardware and software. They set their prices and distributers are not allowed to even post discount pricing in advertising. BMW tightly controls 3rd party anything. The list could go on and on.

    It’s amazing that anyone still doesn’t know why Apple won’t allow OS X on non Apple hardware. Would BMW give you tech support for one of their engines transplanted into a Lotus Elise?

    Get a freaking clue, there’s a reason that Apple is top of the heap in customer service and satisfaction.

    None of the above abc list constitutes a monopoly by any stretch of the legal imagination.

  8. OSX hacked in non-Apple hardware is an issue for Apple because Apple is A HARDWARE COMPANY and loses sales on HARDWARE when someone does that.
    Also, when a none-supported install of OSX suffers technical problems the user has no recourse from Apple, so Apple controls the ‘whole widget’ to prevent issues beyond its control.

    Good grief people, what is the deal?! Why are we still talking about this??

  9. You haven’t figured this out?
    How the frell is Apple (5%) abusing customers **illegally** next to Micros**t (95%) who routinely overcharges and puts competitors out of business by a constant stream of abusive business practices?????

  10. The government allows you to pretty much go anywhere you please in your car.
    BUT, you can’t go (much) faster than the posted speed limits and run others off the road as you go.
    That’s reasonable.

    Business is free to do as it pleases – within acceptable limits.
    That’s also reasonable.

    btw DL: Apple has not prosecuted anyone for installing OS X on a PC as far as we know.
    So the “monopoly” thing you have against them is not logical.
    Apple is quite within its legal bounds to limit use of OS X.

  11. Actually Zune Thang provided some brilliant insight earlier in the “Apple’s iTunes Store now the 2nd largest U.S. music retailer; over four billion songs sold” thread that went along the lines of:

    “Microsoft’s wonderful Zune Marketplace doesn’t use currency—they use points which is more fun than currency.”

    “Using money is boring.”

    “Points are FUN! It’s like a game. In American football when you score a touchdown you are rewarded in POINTS, and it feels good. You aren’t rewarded in dollars, francs or rupees. It wouldn’t be as much fun. “

    “You can’t argue with Microsoft’s findings: people would rather use points than actual money therefore points rule the day “

    This is all part of the new standard of points that MS will follow (and of course expect everyone else to follow). That is why they are not worried about being fined, or losing their money, cause MS believes that the future is points. Soon thanks to Zune Thang evangelism all but the 3 Mac users will be using points instead of currency.

    Zune Thang just wants us to wait for it.

    Your wait. Our bullsh*t.™

  12. i’d hardly call 5% market share a monopoly

    apple control everything because they CAN

    ms can’t even make reliable hardware – look at the 360 and it’s red rings of death !

    and as for the crap they call software…

    personally i’d LOVE ms to control both on the pc side – that way apple’s market share would triple overnight

  13. @ DLMeyer:

    a) Carrier-exclusive phones are nothing new. Apple needed partners for iPhone features like Visual Voicemail and iTunes Activation. And Apple doesn’t seem to be doing much to break unlocked phones. This is nothing like leveraging a 90% monopoly to stifle competition.

    b) Apple hardware/software systems have always been closed since the company’s inception. It’s not to freeze out competitors; it’s so they maintain control of the user experience. OS X on third party hardware would be a support nightmare. Only dimwits who fail to grasp Apple’s hardware/software model could see this as anything barely resembling what Microsoft has done.

    c) Excuuuuuuuuse Apple for ensuring the security of a platform which has everyone watching it. This is absolutely nothing like leveraging a monopoly to stifle competitors. And Apple obviously has a plan to open the platform up.

    d) Excuuuuuuuuse Apple for setting prices for it’s own products. Furthermore, Macs are competitively priced compared to comparably equipped PCs. This point makes no sense.

    I said it before and I’ll say it again: f*&#xke;ry.

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