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EU Prepared to Fine Microsoft $2.5 Million Per Day
Posted by
Zonk
on Tue Jun 27, 2006 11:48 AM
from the i'd-get-on-that-guys dept.
from the i'd-get-on-that-guys dept.
Lord_Slepnir writes "The European Union is unsatisfied with Microsoft's compliance with their anti-trust compliance from 2004, and is preparing to fine them 2 million Euros ($2.5m US) per day until they comply. Under that ruling, Microsoft must open up parts of their operating system to competitors, and change how they bundle Media Player." From the article: "On Monday, Microsoft said it had begun to provide the information Brussels had demanded, but the Commission has signaled the company acted too late. In December, Brussels informed the software giant that it had failed to comply with the original ruling it issued in March 2004."
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Bundle? I lol'd (Score:5, Interesting)
I don't think you can bundle anything more than making it completely uninstallable.
Respect (Score:5, Insightful)
Apparently, someone in the EU has some soft skills and knows that at this stage it isn't about being right or wrong or fair or blablabla. If the EU doesn't bite after making so much noise about it, they'll have a hard time ever getting MS to comply with anything.
what are they going to do with the money? (Score:5, Interesting)
Clarification (Score:5, Informative)
Under that ruling, Microsoft must open up parts of their operating system to competitors, and change how they bundle Media Player.
Just for clarification before anyone gets on their soapbox about how Microsoft shouldn't have to open their code to competitors, that is not the parts that the EU wants. They want MS to dislose API type information so that competitors can better interface with Windows. i.e. Samba.
Dear EU, (Score:5, Funny)
Or, could we talk that fine thing over, maybe?
(it's fun to have a monopoly, ain't it?)
Misleading Commentary (Score:5, Informative)
"Microsoft must open up parts of their operating system to competitors, and change how they bundle Media Player."
This is ambiguous and misleading commentary. MS has been ordered to document the APIs of the interaction between their monopoly desktop OS and their non-monopoly server OS to allow competition. This is not "opening up" any part of their OS. They have not been asked to provide any source code and in fact they offered source code as an alternative to the documentation (under terms that would have gutted the benefits of the punishment) and it was rejected as unsatisfactory. To reiterate, MS was not ordered to open up any code, only to provide documentation on the interaction of their OS's.
The fine is also applied retroactively (Score:5, Interesting)
The fine will be applied retroactively from December 15th.
This means on July 12, they will need to pay 209 * 2.0M EUR = 418.000.000 EUR, or 524.339.200 USD. Following that initial payment, they will continue to pay 2 million EUR each day.
It doesn't state anywhere whether the fine applies only to business days, or also to weekends and holidays. I've assumed it also applies to weekends and holidays since the laws are just as applicable on these days as on any other day.
Re:Nothing for you to see here. Please move along. (Score:5, Informative)
Scratch that. If I RTFA, I would know that that was exactly what they said in 2004.
Parent
Spare the rod... (Score:5, Insightful)
... spoil the megacorp.
Seriously, it seems that the entire history of antitrust action against MS in the US and Europe has been a colossal waste of time and effort. All it has done is show that governments don't really have the teeth to cut into Microsoft's anti-competitive behavior. I originally thought the DOJ action was going to curb MS, but it didn't.
When push came to shove, the US government wasn't truly prepared to make one of the crown jewels of American business suffer in order to make it change its ways. The EU is likely unwilling to push too hard for fear of invoking the wrath of the US government, which is just further proof that if a business becomes big enough, it can only very rarely be constrained by government.
Market forces are doing a far better job of constraining Microsoft. Perhaps if Microsoft's competitors hadn't relied on antitrust lawsuits to save them, they might have fought MS more aggressively and effectively in the past. Apple learned its lesson. Sun (belatedly) learned its lesson. The lesson is that the government isn't going to help you fight Microsoft, so you have to figure out a way to do it yourself.
Parent
Re:Spare the rod... (Score:5, Insightful)
In the US case, the justice department got a conviction against Microsoft. Then the Bush administration was sworn in, and the incoming DOJ whittled the punishment down into a "don't do it again, *wink* *wink*, *nudge* *nudge*."
In the European case, the EU is still finding its legs as an entity/pseudo-government. Any action they take against MS is going to be debated, re-debated, whined about, etc. They have the teeth, it's a question of whether they have the will to take a bite.
Parent
Re:Spare the rod... (Score:5, Insightful)
It's not that they don't have the teeth... it's that they don't have the BALLS! And sad to say, Europe is showing it has a helluva lot more balls than the US. Of course, this is mainly because lobbying is an industry of corruption here in the US. I'm honestly amazed that the EU hasn't been bought off yet or bribed into submission.
Parent
Re:Nothing for you to see here. Please move along. (Score:5, Interesting)
I'm the same way, not a fan at all, but, I do wonder at what point, what would prevent MS from basically thumbing their nose at EU, and saying fine, we'll just withdraw all new products from you market...and if things got worse, just plain stop supporting the products currently out there in EU.
I would not guess it would be good for business, but, if MS has that much cash they're sitting on, and still can do business with the rest of the world...what would stop them from pulling this, and using that to leverage the EU into getting off their ass about this?
Sure, while it would seriously promote alternate OSes in EU, could the EU stand to have the carpet pulled out from under them in this manner considering how entrenched MS is in the world of computing..?
Parent
Re:Oh MEINE GOTT! At that rate.. (Score:5, Interesting)
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Re:Serious Question: (Score:5, Insightful)
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Re:Serious Question: (Score:5, Insightful)
What are the chances of this being simply an excuse to generate a $2.5 million per day revenue stream for the EU government?
Errrm, none? There is no "EU government" - perhaps you meant intergovernmental European Union, or the European Council, Commission or Parliament?
The EU has a budget of over 1% of the European GDP (works out at around US$ 160 billion). Why would they want $2.5m/day?
Rich.
Parent
Re:Serious Question: (Score:5, Informative)
The EU is merely taking the sort of corrective measures the US DoJ should have taken a long, long time ago. I fail to see how a company that's been convicted of a crime can go unpunished for so long.
Parent
Unpunished? Are you crazy? (Score:5, Funny)
Parent
Re:Serious Question: (Score:5, Insightful)
Would this be Slashdot if we didn't?
Parent
Re:Serious Question: (Score:5, Insightful)
If that were the case, they'd be making it as difficult as possible for Microsoft to comply with their demands instead of telling them exactly what they are doing wrong and giving them years to correct their mistake.
I know it's trendy to accuse the EU of being greedy and anti-American, and I don't deny that the money will be happily spent, but that doesn't mean Microsoft isn't breaking the law and it doesn't mean the EU aren't right to fine them.
Microsoft could easily avoid these fines by complying with the court ruling. They have chosen to make every effort to avoid doing so, and these fines are the result.
Parent
PLEASE let MS call their bluff... (Score:5, Insightful)
Microsoft is a multi-national conglomerate doing business in many nations around the world. As such, they are requires to obey the laws and accept the sanctions imposed by every country or, in the case of the EU, group of countries they do business in.
"Sure, they can kick 'em out of the country, but MS should call their bluff."
Sure they should. Then the EU should simply impound all of MS's European assets, and strip them of all patent and copyright protection, thus allowing Europeans to install their new open source, free operating system quite legally under the laws of the EU.
When you grow up you'll realize that there are other countries, legal systems, and ways of looking at things than the US's. BTW, as I pointed out before, the EU is a GROUP of countries... your statement about "kick them out of the country" berely underscores your ignorance.
But thanks for playing.
Parent
Re:PLEASE let MS call their bluff... (Score:5, Informative)
Indeed. Moreover, a lot of people from the US who lurk around here don't seem to appreciate how small their market is compared to the rest of the world. The US may have the world's single biggest national economy (though not by far, depending on the metric you use) but compared to, say, Europe as a whole, it's not so much. Losing most or all of its European income would basically kill Microsoft overnight. Of course, in the current economic climate, it could also trigger the freefall meltdown that the world economy is in grave danger of falling into any time now. :-(
Parent
Re:It's only money... (Score:5, Interesting)
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Re:I Think the EU is Wrong Here (Score:5, Insightful)
I guess I'm looking for trouble by saying this on Slashdot, but I think the EU's reasoning on this issue is faulty, and I think it's an old-fashioned money grab.
They're breaking the law. The US convicted them of it. The EU did too. So did several other nations. They have failed to comply with their punishment. If the EU does not act, they are stating to the world that they won't or can't enforce their own laws. For a fledgling organization like the EU, this would be devastating. If you convict someone of robbery and they escape from the prison instead of serving their time and then stroll into town and tell everyone they aren't going to accept the punishment since they don't want to, the law bloody well better act if they want to be taken seriously, ever.
Good thing I'm not in charge of Microsoft. Out of spite I'd have pulled up stakes of everything in the EU, save for a distribution warehouse.
Yeah, because you'd be fired and replaced within hours.
Parent
Re:I Think the EU is Wrong Here (Score:5, Interesting)
What the rest of the world did or did not decide is irrelevant. What I disagree with is the "failed to comply" portion. After reading both sides (including those long-winded PDF submissions from both sides), I think the EU's original demands were unclear to the point of unusability, and that Microsoft, in this case, has actually strived to comply. I think the EU has made a game of making Microsoft "guess", and then saying, "BZZT! WRONG! We didn't mean that, but we're not going to clarify much either. Try again. Oh, and your time is up."
Parent
Re:I Think the EU is Wrong Here (Score:5, Insightful)
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