BELGIUM/FILE: The European Commission has warned Microsoft that it faces further fines in its long-running antitrust battle with Brussels

Record ID: 451948

  • Title: BELGIUM/FILE: The European Commission has warned Microsoft that it faces further fines in its long-running antitrust battle with Brussels
  • Date: 2nd March 2007
  • Summary: (EU) BRUSSELS, BELGIUM (RECENT) (REUTERS) EXTERIOR OF THE EUROPEAN COMMISSION
  • Embargoed: 17th March 2007 12:00
  • Keywords:
  • Topics: European Union,Industry
  • Reuters ID: LVAEEG0TUK15AY12SYA7BLLAO4VE
  • Story Text: The European Commission warned Microsoft on Thursday (March 1) it could face more fines on top of the record amounts already applied as part of the software giant's long-running antitrust battle with Brussels.
    On this occasion it would be for seeking unreasonable prices from software makers for vital data.
    ''Essentially the basic principle which Microsoft itself has agreed to is that the pricing must be related to innovation and that if there is no innovation then they should only be charging a nominal fee for access to this information and our conclusion is that the vast majority of the information is not innovative at all. And, for example, that even where its covered by a patent that directly comparable technology is available from other sources royalty free," said Jonathan Todd, spokesman for the European Commissioner for Competition.
    He said the EU was baffled by Microsoft's repetitive antitrust actions.
    ''Well, it's a very unusual situation. In the 50 years of European antitrust policy, it's the first time we've been confronted by a company that has failed to comply with an antitrust decision. So we're in somewhat unknown territory. Obviously we expect all companies operating on the European market to comply fully with our antitrust rules and to respect our antitrust decisions," Todd said.
    He said the continuing dispute, almost three years after the Commission ruled that Microsoft had abused the dominant market position of its ubiquitous Windows operating system, was solely due to the company's behaviour.
    The Commission imposed a record 497 million euro fine on Microsoft and ordered it to change its business practices in April 2004, ruling the company had failed to give information to other makers of small-business servers needed to compete with Microsoft's own products.
    Microsoft has said it would be charging for interoperability information because it was based on its own innovative work and protected by patents, but the Commission said the information was either not new or available elsewhere royalty-free.
    "Obviously, it is very regrettable that virtually 3 years after our march 2004 decision Microsoft does not appear to be and in our view is not compliant with that decision," Todd said.
    Microsoft has four weeks to reply to the charges.
    Todd said any additional fines could be backdated to Dec. 16, 2005. The company could face an extra 500,000 euros in daily penalties from December 2005 until June 30, 2006 on top of a daily fine of 1.5 million euros already levied for failing to provide complete information during that period.
    Thereafter, the maximum total fine for both offences rises to a potential 3 million euros a day, he said.
    Competition Commissioner Neelie Kroes rejected 1,500 pages of submission by Microsoft.
    "A reply on our statement of objections is waited for and if the reply is not satisfying then there could be a possibility to give a final warning to Microsoft," Kroes said.
    The Commission said it is still reviewing whether information submitted earlier to help software makers develop programmes that run smoothly with Microsoft's Windows operating system is complete and accurate.
    Microsoft has appealed the original 2004 decision to a European court which is due to decide on the case this year
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