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Tag: anti-trust laws

  • Microsoft Admits That 28 Million PCs In Europe Don’t Offer Choice Of Web Browser

    On every PC sold in the U.S., Internet Explorer is the default Web browser. There’s nothing wrong with that since most of us have the decency to shove it to the side and download Firefox, Chrome or Opera instead. The European Commission obviously thinks there was something wrong with it as they’ve been forcing Microsoft to display a “Browser Choice Screen” on every copy of Windows that has Internet Explorer set to default. Microsoft’s dedication to BCS has been unfaltering until now.

    Microsoft announced today that they heard word that the BCS wasn’t showing up on some computers. They were able to pinpoint the problem on a goof within Windows 7 SP1. Those on regular Windows 7, Vista and XP should still be getting the BCS when Internet Explorer is set as your default browser. So what is Microsoft going to do so they don’t end up paying more fines to the EU?

    First up, Microsoft developed a quick fix and pushed it on July 3 to all Windows PCs running Windows 7 SP1. They also made sure that the BCS was available on all new Windows PCs shipping with Windows 7 SP1. BCS should be on every Windows PC by the end of the week.

    To prove just how serious they are about fixing this problem, Microsoft also hired an outside investigation company to interview Microsoft employees about the problem. They will get to the bottom of this compliance issue and report their findings to the European Commission. With any luck, they will be able to avoid a fine.

    Microsoft really doesn’t want to get fined again so they are also extending the time in which they must display the BCS by 15 months for all PC users. The company hopes its enough to quell the watchful eye of the European Commission, but they understand if the Comission were to “impose other sanctions” (i.e. fines).

    Microsoft blames the problem on engineers not knowing they had to update the BCS code for Windows 7 SP1. The Next Web reports that the European Commission is investigating the issue nonetheless. If Microsoft is found that they intentionally didn’t add the BCS, they could face up to $7 billion in fines. It wouldn’t be the first time that Microsoft was caught red-handed in an anti-trust probe, but it would be nice if Microsoft was telling the truth on this one.

  • Microsoft European Commission Fine Upheld at $1.1 Billion

    The General Court of the European Union has held up a regulatory fine against Microsoft in the amount of €860 million ($1.07 billion). Microsoft had appealed the 2008 decision which levied the record-breaking fine against the company for failing to comply with the European Commission’s 2004 order to reveal proprietary software to competitors in Europe.

    The €860 million judgement is a slightly reduced amount from the original judgement of €899 million. According to the Associated Press (AP), the Court reduced the fine because of a letter sent to Microsoft by the European Commission in 2005 which stated that the company did not have to reveal code that was already freely available. In a statement to the AP, Microsoft said, “Although the General Court slightly reduced the fine, we are disappointed with the Court’s ruling.”

    Microsoft has also stated that it came to an agreement with the European Commission in 2009 about its anti-competitive practices. This means the company does not expect any more fines to come after this judgement. Including today’s judgement, the total fines levied against Microsoft by the Commission since 2004 total €1.64 billion ($2 billion).

    Microsoft is correct that it shouldn’t expect the European Commission to go after Microsoft any longer. The Commission has now set its sights on Google for promoting its own products through its search engine. In fact, Microsoft is part of the FairSearch coalition of companies that brought the Google anti-trust complaints to the European Commission. Judging by how long it took for the final Microsoft judgment to come down, perhaps eight years from now Google will have to pay out its own anti-competition fines to the European Commission.

    (via TIME)

  • European Court Rules on Microsoft’s EU Fines

    Back in 2004 European regulators ordered Microsoft to provide market competitors with information critical to fair competition. Microsoft didn’t submit to the request and on March in 2004 they issued a fine for non-compliance.

    The fine broke a new record for largest fine ever imposed, and regulators slapped Microsoft with a $1.1 billion penalty for taking advantage of their dominant position in the market.

    Microsoft’s lawyers were in court last May arguing that the fines were excessive and undeserved. Next month on the 27th, the case will be back in court and awaiting a verdict. Lawyers for the EU claim that Microsoft took a gamble and lost and should be held accountable for the full amount of the fine.

    The decision of the court will set a precedent for other companies challenging regulatory fines. Intel is also currently facing penalties in Europe for violating anti-trust laws. Their case dates back to 2009 where they were fined for using anti-competitive tactics to combat a smaller firm. We’ll be watching these cases closely. Check back for more news as the court date approaches.