Europe’s not finished with Microsoft yet
Heartwarming though it was, last week’s declaration of software openness from Microsoft (MSFT) won’t end its regulatory troubles. European antitrust watchdogs made that clear Wednesday.
The European Commission fined the software giant a record $1.3 billion, saying the company for three years overcharged competitors for information on how to make products that work with Microsoft’s dominant Windows operating system. Microsoft was quick to portray the fine as an echo of the past, noting that regulators have said Microsoft is now living up to its commitments.
But it’s not so simple. The fine also shows that European regulators still have a bone to pick with Microsoft, and that could make it tough for the company to take bold steps to acquire competitors and compete with Google (GOOG).
Just look at the commission’s official statement about the Microsoft fine. The acrimony is a little obvious. “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 European Competition Commissioner Neelie Kroes. “I hope that today’s decision closes a dark chapter in Microsoft’s record of non-compliance.”
In other words, they trust Microsoft about as far as they can throw Steve Ballmer.
Indeed, there are plenty more opportunities for Microsoft to clash with Europe. Regulators are formally investigating antitrust claims that Microsoft doesn’t give competitors enough information to link their programs to dominant Microsoft offerings such as Office, and that Microsoft inappropriately bundles Internet Explorer with Windows, harming competitors like the Opera browser (which, notably, is made by a Norwegian company).
And, of course, there’s Microsoft’s attempt to buy Yahoo (YHOO) for more than $40 billion, which is all but certain to raise antitrust hackles in Europe. “The EU has obviously demonstrated a clear, continuing concern about Microsoft,” Randal C. Picker, an antitrust law professor at the University of Chicago, said in a recent interview. “I think they still regard Microsoft as being a behemoth.”
A behemoth that, from Europe’s perspective, needs to be on a short leash.
Nice article but some odd pseudo parallels raised by some of the commenters.
While the concept of national champions is odious, generally they are protected because they are not convicted monopolists.
Giving away Media Player does not constitute a 1.3 billion fine – bundling it illegally into Windows to the detriment of other players – both free and non-free does constitute a fine.
Sam Green failed to notice the quote “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” – I think you will find a publication of other European firms (and for that matter US firms) that have failed to comply extremely short.
this obsession of the EU to go after Microsoft has no basis. They just do this because they have to demonstrate that they care about the customers but it is just because it is a big company and in aprticular is MSoft. Why don’t they go after other BIG companies that use unfair business practices? I’m wondering how did the Sony-led group of Blu-Ray discs supporters win the battle against HD DVD. No investigation there? As consumers we know these practices are extremely common
It is amusing that the EU continues to tolerate the concept of the protected “national champion” company and enable its member governments to provide competitive protections to “strategic interests” (anyone remember Groupe Bull in France?). Still, it is a part of the competitive landscape multinational companies have to deal with, even if it is artificial and at times forced.
My question is where are the sanctions against OPEC. Cartels are outlawed by the EU but continue to exist without sanctions. Not to mention the fact that there are other operating systems(free none the less) so does giving away Media Player constitue a 1.3 billion dollar fine?
As a matter of fact,
Norway is not in the European Union.
But maybe Opera is just much better than IE, and Microsoft is just trying to kill it.
Or maybe EU believes that fair competition is for everyone, not just to protect your own companies, as, maybe, in the US?
PS: ever heard of mouse gestures?
Norway is not a member of the EU.
From Jon Fortt: Didn’t say it was.
True, Microsoft may bend and violate some rules, but I get the feeling that EU has a scapegoat with softy and the USA. I would like to see a publication of other European firms that have failed to comply and fines imposed on them. If EU is to continually harp on softy it also takes on the US free enterprise system.
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A senior writer for Fortune, Jon Fortt focuses on technology and innovation in Silicon Valley - a subject he's been reporting on since his days as a rookie reporter for the Lexington (Ky.) Herald-Leader. Before joining Fortune in 2007, Jon had reporting and editing stints at Business 2.0 magazine, and the San Jose (Calif.) Mercury News, Silicon Valley's hometown newspaper.
First Computers were $2500 Brand New…Now it’s ALOT Less..Cheap I May Say.
We Should Start Selling High Priced Computers to EU From the U.S.A…Just Like the cycle of brand new computers in the U.S.A when they were new..NOW EU gets cheap computers..Where were they When U.S.A folks paying $2500 For a new Computer?
Just The same old copycats that need a good whack in the head.
GET YOUR OWN Operating SYSTEM !