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European Union Hits Microsoft with Record $613 Million Fine for Antitrust Abuses
After a five-year investigation, on March 24, 2004 the European Competition Commission ruled that U.S.-based software giant Microsoft has been abusing the virtual monopoly of its Windows PC operating system in Europe in violation of EU antitrust law by bundling its Windows program with Windows Media Player and failing to disclose information that would enable its rivals to offer servers that can work with Windows.
In this landmark antitrust decision, the European Competition Commission slapped Microsoft with a record $613 million fine and gave it 90 days to offer European computer manufacturers a version of its Windows program that does not include the company's Media Player software. It also gave Microsoft 120 days to release "complete and accurate" information to rivals in the server market so their products can be fully interoperable with PCs running Windows.
While Microsoft's rivals have hailed the Commission's ruling as a significant decision that will cause the company to change how it does business going forward in Europe and thereby improve competition, stimulate innovation and ultimately benefit consumers, Microsoft, not surprisingly, has denounced the ruling as "unwarranted and ill-considered". Arguing that the sanctions go well beyond the settlement it reached in 2001 with the Department of Justice in the U.S. antitrust case and that its conduct has been deemed acceptable in the U.S., Microsoft recently announced that it will appeal the decision in the European Court of First Instance. It also intends to seek interim relief by asking the Court to suspend many or all of the sanctions imposed by the Commission on the basis that they will cause irreparable harm.
For additional information, visit:
http://news.com.com/2100-7343_3-5178281.html
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/8255713.htm