Software giant Microsoft looks set to face the biggest fine in EU history for abusing its monopoly position.
The European competition commissioner will not reveal what penalties he plans to impose on Microsoft until 24 March.
But EU member states met to discuss his proposals on Monday, after which leaks swirled round Brussels that it would be nearly 500m euros ($616m; £334m).
Microsoft has a cash pile of more than $50bn, so even a fine on this scale is unlikely to hurt it commercially.
Microsoft has also made clear that it intends to appeal against the ruling so the case, which has already dragged on for five years, could still be a long way from a resolution.
It claims that it should not be fined at all because it did not know its behaviour would breach EU law.
At the end of trading in New York on 23 March, Microsoft shares were down 1.4% at $24.15.
Rumours converge
The exact details of what the EU has in store for Microsoft will become clear by lunchtime on 24 March.
The full 20-member European Commission will meet at 0800 GMT to discuss Competition Commissioner Mario Monti's plans.
Mr Monti himself is expected to give a press conference some time after 1115 GMT.
As well as fining Microsoft, Mr Monti is expected to set limits on its practice of bundling software and services with its Windows operating system.
Bundling is a key part of the software firm's commercial strategy.
Demands
Mr Monti is thought likely to demand that Microsoft offers a version of Windows that comes without the company's own media player.
His proposals were put to a meeting of representatives of EU's 15 members on Monday.
Leaks circulating in Brussels after that meeting suggested the fine would be about 500m euros.
f the leaks are true, the fine will top the EU's previous record of 462m euros. That penalty was imposed on pharmaceutical group Roche after a scandal involving price fixing in the vitamin pills market.
EU wants more open Windows
Last-ditch talks to agree a settlement between Mr Monti and Microsoft chief executive Steve Ballmer broke down last week.
The sticking point was thought to be Mr Monti's proposals for restrictions on Microsoft's future practices.
Following the talks, Mr Monti said: "It is essential to have a precedent which will establish clear principles for the future conduct of a company with such a strong dominant position."
The EU's investigation has found Microsoft to be an "abusive monopolist" which has skewed the market for audiovisual software to the detriment of its rivals.
Microsoft's Windows operating system sits on 90% of the world's PCs, so its decisions about what other software to include with Windows are hugely influential.
Reports say Microsoft will be forced to share proprietary details of its Windows software with rivals, making it easier for them to tailor their products to run on it.
Mr Monti is also expected to demand that Microsoft provide a stripped-down version of its Windows system for the same reason.
Nintendo (2002, restrictive distribution practices): 149m euros
Η ζωή, η ζωή εδω τελειώνει!
"Science is one cold-hearted bitch with a 14" strap-on" - Masuka 'Dexter'
"Angela is not the woman you think she is Gabriel, she's done terrible things"
"So have I, and I'm going to do them all to you." - Sylar to Arthur 'Heroes'
Well, looks like the EU wants to set some precedent. Good for them, I'm getting kinda tired of the enormous amounts of power megacorp lobbyists have...
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Post 666 Made on Fri Jul 04, 2003 @ 12:48 pm
Post 1337 made on Fri Aug 22, 2003 @ 9:18 am
Post 1492 Made on Fri Aug 29, 2003 @ 5:16 pm
Too bad Microsoft can easily eat a 600-700 million dollar fine. This won't hurt them in any way unless there forced to stop shipping there media player with windows or to reveal parts of its coding. Hopefully that will be the case.
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Sea Skimmer wrote:Too bad Microsoft can easily eat a 600-700 million dollar fine. This won't hurt them in any way unless there forced to stop shipping there media player with windows or to reveal parts of its coding. Hopefully that will be the case.
I think if they get the fine and continue to play the same game, the fines will increase.
However this is a moot point, since I interpreted the article to mean; ruling (which means either Microsoft opens up the source for Windows, or ships it in a 'slim downed' version) and fine as part of the ruling.
Η ζωή, η ζωή εδω τελειώνει!
"Science is one cold-hearted bitch with a 14" strap-on" - Masuka 'Dexter'
"Angela is not the woman you think she is Gabriel, she's done terrible things"
"So have I, and I'm going to do them all to you." - Sylar to Arthur 'Heroes'
Sea Skimmer wrote:Too bad Microsoft can easily eat a 600-700 million dollar fine. This won't hurt them in any way unless there forced to stop shipping there media player with windows or to reveal parts of its coding. Hopefully that will be the case.
MS could take the maxium find of ~$3 billion and not notice.
What MS doesnt what is a precedent which allows the EU to dictate the development of Windows. And they would willingly spend more than the fine(~$600-$700 million) to prevent that.
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Sea Skimmer wrote:Too bad Microsoft can easily eat a 600-700 million dollar fine. This won't hurt them in any way unless there forced to stop shipping there media player with windows or to reveal parts of its coding. Hopefully that will be the case.
I think if they get the fine and continue to play the same game, the fines will increase.
However this is a moot point, since I interpreted the article to mean; ruling (which means either Microsoft opens up the source for Windows, or ships it in a 'slim downed' version) and fine as part of the ruling.
Microsoft has a $50 billion war chest so this fine means squat to them. As for future fines, they can always adjust their behavior just enough to outmanuver any new litigation.
The EU knows that the fine won't really hurt MS, but it does show all the other corps. that they aren't gonna dick around with monopolies, and that they should watch out.
"I don't come here for the music, or even the drugs. I come here for the Family!!"-Some guy on hash at a concert
The Albino Raven wrote:The EU knows that the fine won't really hurt MS, but it does show all the other corps. that they aren't gonna dick around with monopolies, and that they should watch out.
How many coporations are as flagrently offensive of anti-trust laws as Microsoft? I'm not sure it really proves anything to anyone.
The Kernel wrote:Microsoft has a $50 billion war chest so this fine means squat to them.
I wouldn't go that far, just the lead of a possible fine resulted in a 1.4% dip in their share price, an actual fine would mean an even more drop. Further action by the EU, and well you get the picture.
I am not saying that Microsof isn't a very durable coperation, but it is hardly immune from tackling the executive body representing the world's largest free market.
Η ζωή, η ζωή εδω τελειώνει!
"Science is one cold-hearted bitch with a 14" strap-on" - Masuka 'Dexter'
"Angela is not the woman you think she is Gabriel, she's done terrible things"
"So have I, and I'm going to do them all to you." - Sylar to Arthur 'Heroes'
The Kernel wrote:Microsoft has a $50 billion war chest so this fine means squat to them.
I wouldn't go that far, just the lead of a possible fine resulted in a 1.4% dip in their share price, an actual fine would mean an even more drop. Further action by the EU, and well you get the picture.
I am not saying that Microsof isn't a very durable coperation, but it is hardly immune from tackling the executive body representing the world's largest free market.
Share prices ALWAYS drop on news like this, it doesn't mean that it wont rebound in a few days/weeks. They are still immensly profitable with a huge wad of cash sitting around for shit like this. Hell, to them it probably makes more sense to pay fines like these and continue to do shady business.
The verdicts in. Microsoft was:
1. Hammered with a crippling $611.8 million fine.
2. Ordered to unbundle Windows Media Player within 90 days.
3. Ordered to make available "complete and accurate" information to rival makers of computer servers within 120 days.
BoredShirtless wrote:The verdicts in. Microsoft was:
1. Hammered with a crippling $611.8 million fine.
2. Ordered to unbundle Windows Media Player within 90 days.
3. Ordered to make available "complete and accurate" information to rival makers of computer servers within 120 days.
Suck shit, you bastards. How many levels of appeal are there?
Finally the EU is serving its purpose by at least attempting to secure free trade. (IIRC, EU was formed with the only purpose of securing free trade... though the ridiculous level of agricultural protectionism implies that the Bruxelles Bigwigs have all but forgotten why their employing institution was formed in the first place)
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What exactly could they do to Microsoft if Bill Gates just said "Fuck you, we're not paying."?
Devolution is quite as natural as evolution, and may be just as pleasing, or even a good deal more pleasing, to God. If the average man is made in God's image, then a man such as Beethoven or Aristotle is plainly superior to God, and so God may be jealous of him, and eager to see his superiority perish with his bodily frame.
BlkbrryTheGreat wrote:What exactly could they do to Microsoft if Bill Gates just said "Fuck you, we're not paying."?
Not much I think. They could hardly block Windows without screwing themselves over.
i dunno about that. there's quite a few asian countries that are readily researching alternatives to microsoft operating systems in order to replace it for their country's standard, and to shirk microsoft.
"It's you Americans. There's something about nipples you hate. If this were Germany, we'd be romping around naked on the stage here."
BlkbrryTheGreat wrote:What exactly could they do to Microsoft if Bill Gates just said "Fuck you, we're not paying."?
Not much I think. They could hardly block Windows without screwing themselves over.
i dunno about that. there's quite a few asian countries that are readily researching alternatives to microsoft operating systems in order to replace it for their country's standard, and to shirk microsoft.
Researching. Nothing is done yet.
Even if they did come up with an alternative, they would have to try to convince (or force, depending on how severe they decided to be) consumers to switch, something that would not be popular and would cause a lot of work. If company X uses software that only runs on Windows, they won't want to switch just because of some dispute the EU has with MS. If they stick with Windows, they then find themselves unable to use it fully, perhaps compromsing security.
there's also plenty of open source alternatives that can be used in place of microsoft operating systems. which would drastically reduce the cost of machines if they were packaged with them.
"It's you Americans. There's something about nipples you hate. If this were Germany, we'd be romping around naked on the stage here."
Darth_Zod wrote:there's also plenty of open source alternatives that can be used in place of microsoft operating systems. which would drastically reduce the cost of machines if they were packaged with them.
Yes, they can be. You still have the problems of chaging over. Can you imagine the horror of thousands of computer illiterate secretary's trying to use Linux? What if you rely on some specialist software that doesn't have a version on other platforms?
If the EU was to foolishly ban MS from selling their products here, then it's the consumers that would lose out most.
You know, if Sharp-Kun was actually right in his beleifs that Microsoft is immune to reprisal, presumably Microsoft would know this and not bother with a 12 year+ court battle that's costing alot of money. Hmmm. Hmmm.
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