EU regulators fined Microsoft 280.5 million euros (US$357.3
million) yesterday for defying a 2004 antitrust ruling, and warned
the company to comply or face bigger fines from next month.
The tough new penalty is the first of its kind and comes on top
of a record 497 million euro (US$633 million) fine the European
Commission imposed in its landmark antitrust decision against
Microsoft in March 2004.
"The EU Commission cannot allow such illegal conduct to continue
indefinitely. No company is above the law. Each and every company,
large or small, operating in the EU must abide by EU law,"
Competition Commissioner Neelie Kroes told reporters.
The Commission required Microsoft to provide technical
information to rival server software makers after it found the
company abused the dominance of its Windows operating system and
squeezed out competitors.
"Microsoft did not even come close to providing adequate
information," Kroes said.
The fine covers the period from December 16 to June 20 at 1.5
million euros (US$1.91 million) daily. It fell short of a possible
daily maximum of 2 million euros (US$2.55 million). Microsoft faces
a further fine of up to 3 million euros (US$3.81 million) a day if
it still does not comply by July 31.
The move signals the Commission's determination to force the
software giant to obey its order and a loss of patience after the
company had two years to comply and used virtually every available
legal and court procedure to spin out the process.
"It puts (Kroes) in a position of authority generally, which
will make business across the board much more inclined to comply,"
said Chris Bright, a London competition lawyer, adding that energy
companies could be the next focus.
The Commission's hardline approach contrasts with that of the
United States, which in 2000 had similar findings against Microsoft
but is still awaiting technical documents from the company as
ordered by the US Justice Department in 2002.
By May this year the process was so troubled that Microsoft and
the court started over again in a process that took the cue from
what a US judge called "the European Commission's direction." Kroes
noted this new US approach yesterday.
Microsoft said it has made massive efforts to comply with the
Commission's 2004 ruling and now has 300 people working to complete
its package by an agreed deadline of July 18.
It called the fine unjustified, but said that will not slow its
effort to comply. Microsoft, which has appealed against every
ruling against it so far by the Commission, said yesterday it will
appeal against this decision too.
Kroes called the original order "crystal clear." It required
interoperability information on reasonable and non-discriminatory
terms.
(China Daily July 13, 2006)
