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Microsoft Prepares For a Huge EU Fine (maximum 10% of last year's revenues)

Usobuko

Banned
The will of whom? Microsoft fans in the US?

I'm all for having more democratic decision making in the EU, but if you polled the EU public right now on whether or not MS should be fined what do you honestly think would be the result?
Anyway, this is a matter of law, not public opinion.

Considering the outcry on America's corporation ( Amazon, Starbuck, Google ) that avoid taxes or manipulating legal ruses that slash their tax liability, I would take the bet that any hint of grievance will be weighted heavily against Microsoft.
 

Enkidu

Member
Not only that but the legal remedies for breaching anti-trust in most jurisdictions doesn't equate to 10% of yearly revenue or something ridiculous like that, they're usually far more measured. (Yes, I get it, they're not being fined 7bn, but the fact that it was an option is ridiculous).
Why is it ridiculous? The 10% maximum is because they didn't comply with the previous ruling, not because of the anti-trust charges.
 

grumpy

Member
For those of you in the EU who support this, was it a pop up that enlightened you about other browsers? Would you have ever been able to install another browser on your own without it?

My (technologically impaired) mother doesn't want to use Firefox or Chrome because she thinks "Internet explorer is the proper Internet". She is just one of millions of computer illiterate people who can't differentiate between browser, Internet and web.
 

Arksy

Member
It wasn't a ruling, you're right. It was a settlement that Microsoft voluntarily agreed to in order to avoid a ruling.

And they broke it.

Right. So off to Court they go to enforce the settlement. I'll admit I have no freaking clue about how the EU level legal system works but I don't get what gives them the right to issue a fine now (Usually it's the domain of Courts). Surely this will be challenged? (I'm asking you because it says Barrister, so I know you can't be a US Lawyer and might know).
 

Dead Man

Member
It wasn't a ruling, you're right. It was a settlement that Microsoft voluntarily agreed to in order to avoid a ruling.

And they broke it.

SNAP

Right. So off to Court they go to enforce the ruling. I'll admit I have no freaking clue about how the EU level legal system works but I don't get what gives them the right to issue a fine now. Surely this will be challenged? (I'm asking you because it says Barrister, so I know you can't be a US Lawyer and might know).

Arksy, that's too clever.
 

Corto

Member
People need to understand that EU is not fining Microsoft because it's a monopoly. The fine is for continued monopolistic practices and the refusal to change those willingly.
 

Cynar

Member
Apple needs to be hit hard for this on IOS. It's kinda bs that Microsoft is targeted for this when you have no choice at all when it comes to mobile Apple products.
 

Mael

Member
Right. So off to Court they go to enforce the settlement. I'll admit I have no freaking clue about how the EU level legal system works but I don't get what gives them the right to issue a fine now (Usually it's the domain of Courts). Surely this will be challenged? (I'm asking you because it says Barrister, so I know you can't be a US Lawyer and might know).

Isn't that part of the agreement anyway?
I mean or else the whole settlement is pointless to begin with.
 

Crub

Member
How is Microsoft preventing people from installing another browser; can someone explain what they did wrong?
 

Donos

Member
How is Microsoft preventing people from installing another browser; can someone explain what they did wrong?

My understanding is that they weren't directly preventing it but they didn't give the user the option to choose. When you walk into a store and buy a laptop or PC , almost everyone has Windows preinstalled and in the past it had Internet Explorer preinstalled. That's why they almost had/have a monopoly. That's what the first fine was for. EU said they should give people the choice to choose and MS agreed. Therefor you get the option to choose your browser when you start up Windows. The new fine seems to be because MS did break this agreement for some time.

Please correct me if i'm wrong.


It's also written way better by other posters in this thread so take your time to read them.

Seems like a pretty hefty fine and i wonder were the money the EU gets is going to.
 

Dr Dogg

Member
They aren't direclty preventing but they didn't give the user the option to choose. When you walk into a store and buy a laptop or PC , almost everyone has Windows preinstalled. That's why they almost had/have a monopoly. That's what the first fine was for. EU said they should give people the choice to choose and MS agreed. Therefor you get the option to choose your browser when you start up Windows. The new fine seems to be because MS did break this agreement for some time.

Please correct me if i'm wrong. It's also written way better by other posters in this thread so take your time to read them.

Seems like a pretty hefty fine and i wonder were the money the EU gets is going to.

According to this all fines go back into their budget. http://ec.europa.eu/competition/consumers/institutions_en.html

Court of Auditors

The Court of Auditors monitors the proper collection and legal spending of the EU budget (European taxpayers’ money) on EU policies.

It has the authority to audit fines imposed on companies found liable for anti-competitive behaviour in cases brought by the Commission.

The money paid in fines goes back into the EU budget.
 

Corto

Member
My understanding is that they weren't directly preventing it but they didn't give the user the option to choose. When you walk into a store and buy a laptop or PC , almost everyone has Windows preinstalled and in the past it had Internet Explorer preinstalled. That's why they almost had/have a monopoly. That's what the first fine was for. EU said they should give people the choice to choose and MS agreed. Therefor you get the option to choose your browser when you start up Windows. The new fine seems to be because MS did break this agreement for some time.

Please correct me if i'm wrong.


It's also written way better by other posters in this thread so take your time to read them.

Seems like a pretty hefty fine and i wonder were the money the EU gets is going to.

European Commission Official site:

Where does the money come from?

Other revenue

The budget also has other sources of revenue, e.g.:

taxes on EU staff salaries
contributions from non-EU countries to certain programmes
fines on companies for breaching competition laws, etc.

Where does the money go?
 

Donos

Member
Thanks. Thought they would allocate the money to case related branches (anti-trust etc) but it seems go straight into their overall budget which then gets allocated to their 3 main priorities. So it's like a nice paycheck for them. Understandable that MS is going to fight this or at least is going to try to lower the fine.
 

Dr Dogg

Member
I never understood how apple is exempt from these fines for iOS/OSX.

Well the ball was set rolling on this by Opera who complained to the EU Commission back in 2007 stating that Microsoft were stifling competition. I guess until other companies start complaining then they have no case to answer to. To be fair with OSX there did used to be a selection of browsers on there although very hidden in the main Applications folder.
 
Yo guys we should complain for cod they should force activision to install bf3 and halo(xbox) or killzone(ps) with cod because cod has monopoly....
 

Mael

Member
Yo guys we should complain for cod they should force activision to install bf3 and halo(xbox) or killzone(ps) with cod because cod has monopoly....

monopoly-9012.jpg


He's in CoD?
I should play Blops2 then!
 

Corto

Member
2.16B Euros seem a little excessive.



They don't need to.

Well, that amount is the total of past fines not this specific one. And the truth is that these practices give Microsoft enough market advantage and returns in spite of the amount of the corresponding fines that is just a case of "crime pays" scenario. Ten years is time enough to make the changes they previously agreed with.
 

phisheep

NeoGAF's Chief Barrister
Right. So off to Court they go to enforce the settlement. I'll admit I have no freaking clue about how the EU level legal system works but I don't get what gives them the right to issue a fine now (Usually it's the domain of Courts). Surely this will be challenged? (I'm asking you because it says Barrister, so I know you can't be a US Lawyer and might know).

That would have been part of the settlement agreement. So contractual.

Probably a wee bit more complicated than that, but that'll be the thrust of it. The settlement would have said something like: in order to avoid court leading to a fine of [up to legal maximum amount], we promise to take the following actions to stop being anticompetitive, and if we breach that we agree to pay the said fine of [up to legal maximum amount].
 

kuroshiki

Member
EU needs money to feed Spain, Greece, Portugal, and other nations that have huge deficit. and MS is US company.

There we go.
 

Corto

Member
EU needs money to feed Spain, Greece, Portugal, and other nations that have huge deficit. and MS is US company.

There we go.

500 million euros are unfortunately a tear drop in an ocean of euro debt. Posting from Portugal, and that amount wouldn't do a thing for our debt.
 

phisheep

NeoGAF's Chief Barrister
EU needs money to feed Spain, Greece, Portugal, and other nations that have huge deficit. and MS is US company.

There we go.

Yeah right. Just because you guys over there don't get to hear about the Commissions' findings against Dutch/German/French/British/Italian etc companies.
 

ruttyboy

Member
500 million euros are unfortunately a tear drop in an ocean of euro debt. Posting from Portugal, and that amount wouldn't do a thing for our debt.

I think part of the problem is that to the individual, 500 million euros seems a fantastical amount of money because they have no perspective of the actual context of multi-billion (trillion?) dollar companies and governments. The other part is somewhat herp and a little bit derp.
 
Yeah right. Just because you guys over there don't get to hear about the Commissions' findings against Dutch/German/French/British/Italian etc companies.

Are there any examples of them issuing such high fines against Dutch, German, French, British or Italian companies?
 

Atomski

Member
Im not a MS supporter or anything but being fined for something like this just seems kinda odd. Like the possibilities of laws like this are endless. What other crazy ignorant things can consumers not figure out on their own should we be fining for next?

Does ms need to have a pop up for every piece of software they make showing the competitors??
 

kuroshiki

Member

The only European company in that list is Phillips. Rest are South Koreans. And fine is 1.9b combined for all of them. Not even close in terms of amount of fine discussed in here.

500 million euros are unfortunately a tear drop in an ocean of euro debt. Posting from Portugal, and that amount wouldn't do a thing for our debt.

That's true. We Americans also do have some shitty situation when it comes to debt. It just passed 16 trillion dollars.
 

ruttyboy

Member
The only European company in that list is Phillips. Rest are South Koreans. And fine is 1.9b combined for all of them. Not even close in terms of amount of fine discussed in here.



That's true. We Americans also do have some shitty situation when it comes to debt. It just passed 16 trillion dollars.

See my edit for a fine of a French company that exceeds any individual MS fine I believe.
 
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