A slap in the wallet: EU imposes record fine for Microsoft’s “unfair benefits”

The European Union hit Microsoft with an 899-million euro (1.34 billion U.S. dollars) fine on Wednesday, alleging that the company has ignored the EU’s long-standing request to provide competitors key software at a fair price.

02/28/2008


The European Union hit Microsoft with an 899-million euro (1.34 billion U.S. dollars) fine on Wednesday, alleging that the company has ignored the EU’s long-standing request to provide competitors key software at a fair price.
The fine is the largest in EU history and the third one levied against Microsoft. So far, Redmond, Wash.-based software giant has been assessed nearly 1.7 billion euros (2.4 billion U.S. dollars) in fines during its long-running dispute with the EU over Microsoft’s method of sharing source code with vendors who want to build applications that are compatible with Microsoft’s market-leading Windows operating system.
“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 EU Competition Commissioner Neelie Kroes.
Last September, the EU’s Court of First Instance rejected a Microsoft appeal of rulings imposing fines of 497 million euro and 280.5 million euro. Those fines were levied by the EU’s executive branch in 2004 and 2005, respectively.
A story on Yahoo! News reports that Microsoft has not decided whether to appeal the latest fine. If Microsoft does not appeal, the Yahoo! story states, payment of the fine would end an investigation into Microsoft's behavior that was triggered by a 1998 complaint by Sun Microsystems Inc . It alleged Microsoft was refusing to supply information that servers need to work with its market-dominating Windows operating system.
The EU argues that Microsoft has been able to reap unfair benefits and damage consumers by refusing to give so-called interoperability protocols—instructions needed by servers to work effectively with Windows—to its rivals.
Microsoft had initially demanded royalty payments of 3.87 percent of a licensee’s product revenues for a patent license and 2.98 percent for a license giving access to the secret interoperability information.
The company later reduced its royalty rates to 0.7 percent and 0.5 percent respectively, but only started charging what the EU considers a reasonable flat fee of 10,000 euros on October 22, 2007.
Because of this timeline, the EU claims Microsoft has been fined for failing to comply with its demands for three years.
The EU in the past also objected to Microsoft’s decision to bundle its own media player with the Windows operating system. This January, the EU launched to new probes into complaints that Microsoft was using its dominant position to block rival browsers and offices software developers.





Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
Human Factors and the Impact on Plant Safety
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
June 2018
Discrete and process sensor fundamentals, autotuning controls, system integrator roundtable
May 2018
Salary and Career Survey, IT and OT convergence, robotic standards and safety, secure circuit protection
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me