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[guit3457]

I know it's not related with their gaming side but it's a lot of money.

http://news.sky.com/story/1060795/microsoft-prepares-for-hefty-eu-fine

"Microsoft could be landed with a fine from the European Union running into hundreds of millions of euros, according to media reports.

The EU's head of anti-trust, Joaquin Almunia, will decide whether Microsoft should be penalised for breaking its promise to offer a choice of rival internet browsers, Reuters said.

More than a decade ago - following an anti-trust battle - Microsoft agreed to make a choice of browsers available to its Windows users in Europe.

But regulators said that between February 2011 and July last year the company did not do this.

Microsoft blamed a technical error for the lapse and said it had tightened internal procedures to avoid a similar situation arising.

Sources familiar with the case said Mr Almunia could make an example of the US software giant, according to the newswire.

EU rules mean Microsoft faces a maximum fine of $7.4bn (£4.9bn) - or 10% of last year's revenues - although any penalty is not expected to be this high.

The European Commission has already fined Microsoft 1.6bn euros (£1.38bn) for not providing data at fair prices to rivals and for tying its media player to its operating system"



In 2002 Nintendo was fined by the comission too:

http://europa.eu/rapid/press-release_IP-02-1584_en.htm

"The European Commission has imposed a total fine of €167.8 million on Japanese video games maker Nintendo and seven of its official distributors in Europe for colluding to prevent exports to high-priced from low-priced countries."

But the amount of the Microsoft's fine is HUGE.


UPDATE:

http://news.sky.com/story/1060795/microsoft-fined-over-rival-browser-choice

"Microsoft has been fined 561m euros (£484m) by the European Commission for breaking its promise to offer a choice of rival internet browsers.
Google, for example, is currently in discussions with the EU over how it ranks search engine results.

Microsoft's penalty is the latest in a string of punishments issued by the Commission against the US software giant.

In total, it has been fined 2.16bn euros (£1.87bn) for - among other things - not providing data at fair prices to rivals and for tying its media player to its operating system."

 

[darkwing]

wonder how the stock market would react to this

 

[Perkel]

Not their first time

 

[PairOfFilthySocks]

Hopefully getting busted for anti-consumer bs like this will make companies think twice about the possibility of blocking used games

 

[Palette Swap]

Back then, I was all for this but 10 years later, it's amusing considering the system duopoly on mobiles OSes where they don't spontaneously give you any kind of choice for browsers.

 

[Vexxan]

Damn that's a lot of money.

 

[Napalm_Frank]

Sonyland

 

[danmaku]

Back then, I was all for this but 10 years later, it's amusing considering the system duopoly on mobiles OSes where they don't spontaneously give you any kind of choice for browsers.

They should fine Apple and Google too.

 

[GavinGT]

Back then, I was all for this but 10 years later, it's amusing considering the system duopoly on mobiles OSes where they don't spontaneously give you any kind of choice for browsers.

Yeah, it's crazy that Microsoft is apparently the only one held to this rule. Especially now that IE is getting absolutely trounced by Chrome and Firefox in Europe.

 

[DBT85]

Microsoft and the EU have this kind of hate hate relationship down to a tee.

 

[TaroYamada]

Yeah, it's crazy that Microsoft is apparently the only one held to this rule. Especially now that IE is getting absolutely trounced by Chrome and Firefox in Europe.

That seems to be the case often. Apple never seems to get slapped with these types of anti-trust suits, yet they don't even allow non-webkit browsers on iOS.

 

[Milchjon]

This is getting ridiculous. They paid a fine already, they have that stupid browser choice thingy on every new PC, and the competition isn't held to the same standards.

I also don't really understand how smartphone producers get away with the same thing.

 

[PetrCobra]

My Windows 7 gave me a choice of browsers after several restarts, some of the browsers I didn't even know, and some others, like Maxthon, I did not expect to be covered in such a selection. It definitely didn't seem like Microsoft is trying to force IE down my throat.

 

[SneakyStephan]

There aren't nearly enough fines like this, why did metro store being included by default and being a walled garden to boot get a pass? That is even worse than trying to force IE down people's throats.

 

[michaelius]

That whole browser thing is rediculus - i want my system to come with browser so i can download competitors browsers.

 

[Durante]

They should fine Apple and Google too.

Absolutely. Though I guess there's an argument to be made that neither are monopolies in the same way that MS is on PC, precisely because there's both Apple and Google.

 

[AbandonedTrolley]

This is getting ridiculous. They paid a fine already, they have that stupid browser choice thingy on every new PC, and the competition isn't held to the same standards.

I also don't really understand how smartphone producers get away with the same thing.

That's the issue, for a period of time the choice STOPPED appearing on new machines. Hence the fine.

 

[SmokyDave]

I feel bad for MS on this one. I don't see why they ought to offer alternative browsers / media players or whatever. It's their OS, let 'em package as much of their own software as they like.

 

[LonelyGreyWolf]

[...] and for tying its media player to its operating system"

I honestly cannot understand how this is illegal. Microsoft's rivals should create their own operating systems (and some of them do!). I can see that it's wrong, but I don't understand how it's against the law.

 

[CadetMahoney]

I know it's not related with gaming but it's a lot of money.

heh It's the size that counts.

 

[ElectricKaibutsu]

"The European Commission has imposed a total fine of €167.8 million on Japanese video games maker Nintendo and seven of its official distributors in Europe for colluding to prevent exports to high-priced from low-priced countries."

I hadn't heard about that. That would be region locking, or something like it, right? Shit, every company should be fined for that. Let's get rid of it.

 

[CLEEK]

They should fine Apple and Google too.

Apple and Google dont have a monopoly, which is the basis of the original EU anti-trust ruling. There is a clear, legal definition of what constitutes a monopoly, and MS certainly used to have it with Windows.

Once you have a monopoly, you go under greater scrutiny and face anti-trust litigation if you abuse your position.

 

[jimi_dini]

I feel bad for MS on this one. I don't see why they ought to offer alternative browsers / media players or whatever. It's their OS, let 'em package as much of their own software as they like.

It's a monopoly. Which means they can use that monopoly to force other things (Internet Explorer) on people - most people won't download+install something else if they already have something that somewhat works. And in case of a web browser that's really bad, especially because it was IE 6 for quite a long time. And 6 doesn't follow a lot of standards correctly.

 

[CLEEK]

I hadn't heard about that. That would be region locking, or something like it, right? Shit, every company should be fined for that. Let's get rid of it.

No. Price fixing. Using their market dominance to force retailers to sell at (and maintain) an inflated price.

 

[ElectricKaibutsu]

No. Price fixing. Using their market dominance to force retailers to sell at (and maintain) an inflated price.

I'm pretty sure this is because they tried to enforce different prices in Europe to milk consumers, which is the reason you don't see Nintendo giving any "official" prices for their products in Europe.

I see. Thanks ^_^

 

[Perkel]

Most of you guys don't realize it but Microsoft is monopolist in PC market. Apple, Linuks and other OSes are small fry because 90% PCs today use windows as OS.

Monopolists don't have same rights as normal smaller companies.
Microsoft already changed their policy toward Windows Media Player as default media player because EU fined them to oblivion.

Now when you start WMP it ask you if you want to use it as default media player.

 

[Dr Dogg]

This is getting ridiculous. They paid a fine already, they have that stupid browser choice thingy on every new PC, and the competition isn't held to the same standards.

I also don't really understand how smartphone producers get away with the same thing.

Problem is this is an issue dating back as far as 1993. Microsoft have been involved in many anti-trust suits and questions raised about their business practices ranging from OS licensing, streaming solutions, Windows Media Player, Internet Explorer and more recently Office document formats. That history surely goes against them even if they slightly misstep.

 

[Lord Panda]

So using the EU's anti-trust regulators logic: every single operating system deployed and in use in the EU should have mandatory 'browser ballot' screens then. And how does that violation equate to 10% of MS earnings?

 

[fvng]

That's more than their losses from the RROD debacle

 

[jimi_dini]

They paid a fine already, they have that stupid browser choice thingy on every new PC, and the competition isn't held to the same standards.

The stupid browser choice thingy didn't work for a few months (and don't tell me that Microsoft didn't notice it during months, come on). That's the cause of the fine. If you drive too fast and then pay a fine, you are still not allowed to drive fast again and if you do, you will get another fine.

And the competition is lower one-digit percentage. Almost every PC out there is sold with Windows preinstalled. That's why it matters.

 

[Lord Panda]

No. Price fixing. Using their market dominance to force retailers to sell at (and maintain) an inflated price.

Yep that would describe Nintendo to a tee.

 

[JimmyRustler]

Yeah, it's crazy that Microsoft is apparently the only one held to this rule. Especially now that IE is getting absolutely trounced by Chrome and Firefox in Europe.

I think that this whole thing is more historical as MS added the browser later and then forced Netscape and etc. out of business. Apple and Google offered only own browsers right from the start, so you can really sue them.

 

[Enkidu]

So using the EU's anti-trust regulators logic: every single operating system deployed and in use in the EU should have mandatory 'browser ballot' screens then. And how does that violation equate to 10% of MS earnings?

No, only if the operating system has a monopoly in its market. Windows had it with desktops, which is why they couldn't just act however they wanted. The 10% is probably just the maximum the EU is allowed to fine if somebody breaks the terms of their previous rulings.

 

[Perkel]

So using the EU's anti-trust regulators logic: every single operating system deployed and in use in the EU should have mandatory 'browser ballot' screens then. And how does that violation equate to 10% of MS earnings?

There is no logic in anti-trust regulations.
If Apple will get to big they will have same problems like MS.

If MS was only EU firm and had 99% of market share they would already be partitioned to smaller entities and made to fight eachother for market share.

 

[TheOddOne]

EU fines Microsoft over $730 million for failing to include browser ballot in Windows 7 SP1

Nearly 20 years later, the decision to bundle a web browser with Windows is still giving Microsoft grief. Today, the European Union has decided to fine the company €561 million (around $730 million) for breaking a 2009 antitrust agreement. At the time, Microsoft agreed to include a browser ballot box in every new copy of Windows, allowing users to pick any one of the 12 most popular browsers rather than defaulting to Microsoft Internet Explorer. However, in what Microsoft called a "technical error", Windows 7 Service Pack 1 removed this choice. In July, the European Commission formally started investigating, and last October it decided that Microsoft had indeed broken the rules.

Last month, Reuters reported that the EU would likely fine Microsoft by the end of March. Indeed, Microsoft is now paying for the trouble.

 

[xemumanic]

I swear, the EU is just using Microsoft as an ATM.

 

[gaming_noob]

Microsoft is going to single handedly get Europe out of recession.
Where does the money go to?

 

[Durante]

So using the EU's anti-trust regulators logic: every single operating system deployed and in use in the EU should have mandatory 'browser ballot' screens then.

No, you don't understand how this works. Every single operating system deployed that has an effective monopoly on some segment of the market should not be bundled with software used to gain a monopoly in another market.

 

[zerokoolpsx]

That is a lot of money. Holy crap.

 

[Walshicus]

Seems overly harsh...
http://europa.eu/europedirect/write_to_us/mailbox/index_en.htm

 

[Nevasleep]

A technical issue from MS for nearly 6 months.

 

[Perkel]

EU fines Microsoft over $730 million for failing to include browser ballot in Windows 7 SP1

crazy fine

 

[Flatline]

Most of you guys don't realize it but Microsoft is monopolist in PC market. Apple, Linuks and other OSes are small fry because 90% PCs today use windows as OS.

Monopolists don't have same rights as normal smaller companies.
Microsoft already changed their policy toward Windows Media Player as default media player because EU fined them to oblivion.

Now when you start WMP it ask you if you want to use it as default media player.

Please read this post before replying guys.

 

[Visceir]

Thought this was about the Denmark tax evasion thing. Another billion there.

http://www.neogaf.com/forum/showthread.php?t=518604

 

[GavinGT]

It seems like a silly thing for Microsoft to do on purpose, considering it did nothing to stop IE's downward trend in market share.

 

[madmackem]

It seems like a silly thing for Microsoft to do on purpose, considering it did nothing to stop IE's downward trend in market share.

Does it matter if it was on purpose or not? like the speeding example given earlier youd still get fined for speeding even if it wasnt on purpose no?.

 

[GavinGT]

It also seems ludicrous that Microsoft didn't notice this for months. Maybe they wanted to test the waters and see what they can get away with.

Agreed. Maybe they saw it as a calculated risk that was worth taking, since they were pushing the new version of IE pretty hard for a while there.

 

[Leonsito]

This browser shit is stupid, OSX comes with a browser and doesn't show any option window to choose other, same with Ubuntu, Android, etc...

 

[railGUN]

This browser shit is stupid, OSX comes with a browser and doesn't show any option window to choose other, same with Ubuntu, Android, etc...

They're not monopoly OS's... how are people not getting this.

 

[avaya]

Awesome. Though I think we should be fining the shit out of Apple and Google instead. Technically both are monopolies under EU law. Any reason to fine them is ok in my book, they've evaded billions in tax.