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

Here.

Edit: And here's a French one for 896m euros as part of a 1.38bn euros (£1.14bn; $1.73bn) total fine against four companies.

http://europa.eu/rapid/press-release_IP-10-1487_en.htm?locale=en

And you can browse this page to find all cases. Microsoft case is notable due to the relapsing practices of the company and refusal to act on the conditions agreed on a previous settlement with the European Commission.

Thank you both.
 

harSon

Banned
Jesus, EU has such a hard on for fucking over Microsoft. It's getting pretty ridiculous at this point. As people have said, they could get Apple and Google for the same bullshit within their respective markets, but Microsoft is always singled out. Google abuses its search engine to get Chrome users, and I'm never prompted to use anything but Safari when using iOS and OSX. I personally don't agree with the reasoning behind the fines, especially considering Internet Explorer being paired with Windows has done little to stop the former from continuing its downward slide.
 

Zaptruder

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

Given that this is a topic about how MS is getting fined... AGAIN... for not doing what they were supposed to do after the first fine...

It doesn't seem like these companies will 'learn' anything.

They value their 'strategic advantages' more than they care about been fined.

Sadly, as a market, we may be incentivizing this sort of behaviour.

Oh well. Make the fines big enough to really make them shit their pants.

If the US Govt. had gone through with the breaking up of MS back in the 90s, we may possibly be seeing more pause from corporations of today from that sort of behaviour; using their size and weight to muscle out the competition.
 

Mael

Member
Jesus, EU has such a hard on for fucking over Microsoft. It's getting pretty ridiculous at this point. As people have said, they could get Apple and Google for the same bullshit within their respective markets, but Microsoft is always singled out. Google abuses its search engine to get Chrome users, and I'm never prompted to use anything but Safari when using iOS and OSX. I personally don't agree with the reasoning behind the fines, especially considering Internet Explorer being paired with Windows has done little to stop the former from continuing its downward slide.

Or you know instead of charging ahead you could get down from your high horse and actually read why MSFT is being fined and all.
That would be better for everyone involved, including the cleaning lady that had its time full with horse shit already.
 

harSon

Banned
Or you know instead of charging ahead you could get down from your high horse and actually read why MSFT is being fined and all.
That would be better for everyone involved, including the cleaning lady that had its time full with horse shit already.

I read the OP before making my post.
 
MS should lawyer up and fight this bs. In this era the PC is nothing more than computing form factor. Phones and tablets, for the vast majority of daily uses have the same capabilities and more. Email, photos, media, writing, surfing, social, etc.

The EU is acting like time has stood still over the last 10 years. If you flatten modern internet capable devices (Last 3 years to present) into marketshare the PC is probably 1/2 of the market at best.

I just wrote this post on my phone, in Safari. No PC required. A few years back that wouldn't have been possible.
 

Mael

Member
I read the OP before making my post.

Now read the thread and you'll see and understand why MSFT is being singled out.

MS should lawyer up and fight this bs. In this era the PC is nothing more than computing form factor. Phones and tablets, for the vast majority of daily uses have the same capabilities and more. Email, photos, media, writing, surfing, social, etc.

The EU is acting like time has stood still over the last 10 years. If you flatten modern internet capable devices (Last 3 years to present) into marketshare the PC is probably 1/2 of the market at best.

I just wrote this post on my phone, in Safari. No PC required. A few years back that wouldn't have been possible.

Because they upped the speed limit doesn't mean you have a basis for not paying the fine you got for going overboard while going back from work.
 

-Amon-

Member
IMO...Microsoft should just stop supporting the EU and not sale anything there after the way the EU has imposed fines against them. I know a lot of people will disagree with me but I call BS.

I pray to god once a week for your hope to become reality.
 

ruttyboy

Member
What about the tablet market?

What about it, it would appear to be an even race at the moment.

tablet-market-share-march-2012.jpg


Don't know how reliable that particular source is, but I picked it from many graphs from varying sources that painted the same picture.
 
One thing courts hate more than anything is breaking their decisions. Quite stupid of MS.

Frankly they should be pushing their software on other peoples OS's these days. It is rather astounding how much they've not adapted.

Whatever. They still have a desktop monopoly so its right that is clamped down on. Meanwhile there just isn't thay same situation elsewhere.

Just do as your told.
 

shandy706

Member
Wait, nearly every device I have.....from like 6-7 companies comes with ONE company created default browser OS.

Would every one of them have multiple browsers in Europe by default?

^^^Seriously?
 

Osiris

I permanently banned my 6 year old daughter from using the PS4 for mistakenly sending grief reports as it's too hard to watch or talk to her
Wait, nearly every device I have.....from like 6-7 companies comes with ONE company created default browser OS.

Would every one of them have multiple browsers in Europe by default?

^^^Seriously?

That depends, which ones were being provided by a company previously found guilty of abusing it's monopoly and in direct contravention of the settlement terms that resulted from that verdict?
 
It's honest not near as bad as the "license prices" fine that the article mentions, this current fine seems to be for a clear violation of the previous agreement which seems reasonable. In the "license prices" fine Microsoft was supposed to provide license rates at fair prices to competitors. However the EU ruling did not specify what a fair price was. So Microsoft continually over the period of a year or so lowered and lowered and lowered their rates. The EU would never say what the rates actually should be, they just kept saying that they were not low enough. Then when they finally agreed on the rates they fined Microsoft back payments for all the time that they were reducing rates, but the rates were still too high, even though they never told Microsoft at any point what the rates should be.

Honestly one of the most embarrassing shake downs for cash that I've ever seen.

From wiki:
The commission ordered Microsoft to provide this information. Microsoft agreed to this, providing the information for royalty fees of 6.85% of the licensee's revenues for the product on grounds of innovation (specifically, 3.87% for the patent license and of 2.98% for the information license). The EU found these royalty fees unreasonable and Microsoft was ordered to lower them. Microsoft complied with this, adjusting the royalty rates to 1.2% (changing the rates for the licenses to 0.7% and 0.5%, respectively) in the European Union, while keeping the rate the same for the rest of the world. The EU still saw this as an unreasonable rate, and Microsoft, two months after lowering the rates, reduced the rates yet again to a flat rate of €10000 or a royalty of 0.4% applicable worldwide. Microsoft's royalty rates, which were deemed unreasonable for the period of 15 months between June 21, 2006 and October 21, 2007 are the cause for the fine. So far, the EU has fined Microsoft €1.68 billion in 3 separate fines in this case. This fine will go towards the European Union annual budget.
 

avaya

Member
Given Microsofts repeated violations, should have gone for the full 10% revenue fine. They got off lucky.

Apple will get fined sooner or later.
 

shandy706

Member
That depends, which ones were being provided by a company previously found guilty of abusing it's monopoly and in direct contravention of the settlement terms that resulted from that verdict?

Does that matter? Does one only get in trouble in Europe if they screwed up in the past?

LOL
 
What about it, it would appear to be an even race at the moment.

tablet-market-share-march-2012.jpg


Don't know how reliable that particular source is, but I picked it from many graphs from varying sources that painted the same picture.

If that was accurate, Apple was at 72% marketshare as recently as 2011. At what point does market dominance become market monopoly? One could argue that apple and Google combined have made all other phone and tablet OS' non-competitive with their business models. I'm pretty sure every Android device ships with Google browser/maps and a YouTube app.

As someone said above, this kind of ruling is stuck in a 2003 mindset where phones and tablets aren't all-purpose computing devices that compete with and often replace dedicated desktops. And Apple/Google are allowed to run wild while MS is fined and sanctioned into irrelevance in the PC space.
 

GavinGT

Banned
If that was accurate, Apple was at 72% marketshare as recently as 2011. At what point does market dominance become market monopoly? One could argue that apple and Google combined have made all other phone and tablet OS' non-competitive with their business models. I'm pretty sure every Android device ships with Google browser/maps and a YouTube app.

Apple and Google should be separated so we can put a stop to this devastating monopoly.
 

Durante

Member
It's amazing how completely unable people in this thread are of distinguishing between entirely, well, distinct situations. Could it be that laws related to leveraging monopolies only apply in case a company actually has a monopoly? Nah, it has to be the evil EU trying to remedy financial problems with the mighty US dollar.
 
Look, I am against real monopolies as much as the next guy (looking at you cable companies in the US) but I fail to see how Microsoft did anything that is anti-consumer. They develop and sell the Windows OS and it perfect sense to me that they only pre-install Internet Explorer and Windows Media Player. I fail to why NOT including a competitors software in your product is considered anti-consumer. Microsoft has done nothing to prohibit the end user from installing any 3rd party software they want. Does OSX come preinstalled with Firefox? Do Android phones come preinstalled with other web browsers?
 

Corto

Member
If that was accurate, Apple was at 72% marketshare as recently as 2011. At what point does market dominance become market monopoly? One could argue that apple and Google combined have made all other phone and tablet OS' non-competitive with their business models. I'm pretty sure every Android device ships with Google browser/maps and a YouTube app.

As someone said above, this kind of ruling is stuck in a 2003 mindset where phones and tablets aren't all-purpose computing devices that compete with and often replace dedicated desktops. And Apple/Google are allowed to run wild while MS is fined and sanctioned into irrelevance in the PC space.

I'll try to rephrase one of my previous posts. Microsoft isn't being fined for having a dominant position in the market. It is getting fined because it has continuously abused of that position with monopolistic strategies and refused to comply to a mutually agreed settlement with the European Commission.
 

TheNatural

My Member!
Look, I am again real monopolies as much as the next guy (looking at you cable companies in the US) but I fail to see how Microsoft did anything that is anti-consumer. They develop and sell the Windows OS and it perfect sense to me that they only pre-install Internet Explorer and Windows Media Player. I fail to why NOT including a competitors software in your product is considered anti-consumer. Microsoft has done nothing to prohibit the end user from installing any 3rd party software they want. Does OSX come preinstalled with Firefox? Do Android phones come preinstalled with other web browsers?

This is the issue and has always been the issue:

Intel Vice-President Steven McGeady, called as a witness, quoted Paul Maritz, a senior Microsoft vice president as having stated an intention to "extinguish" and "smother" rival Netscape Communications Corporation and to "cut off Netscape's air supply" by giving away a clone of Netscape's flagship product for free.


The plaintiffs in the antitrust case claimed that Microsoft had added support for ActiveX controls in the Internet Explorer web browser to break compatibility with Netscape Navigator, which used components based on Java and Netscape's own plugin system.

On Office documents: In a memo to the Office product group in 1998, Bill Gates stated: "One thing we have got to change in our strategy—allowing Office documents to be rendered very well by other peoples [sic] browsers is one of the most destructive things we could do to the company. We have to stop putting any effort into this and make sure that Office documents very well depends [sic] on PROPRIETARY IE capabilities. Anything else is suicide for our platform. This is a case where Office has to avoid doing something to destroy Windows." [emphasis in original][16]

http://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish

This is why it's dangerous. By only offering a default option for the consumer, many consumers still use whatever is just there by default. Times have changed, but it still happens.

Once they get a foothold, they introduce some arbitrary non standard to break competitors compatability, which then can't be replicated because Microsoft owns the rights to the technology.

We see this up to this day. Microsoft continuously tries to close down environments where competitors have an edge. Windows 8 was proof this kind of thinking still exists with them, nothing's changed. Same with 360's successor and it's DRM and anti-resell measures. DirectX has a monopoly on being *the* PC gaming API, and now no one considers serious gaming on a non Windows PC.

Things like that are why a little thing like choosing a browser or media player at startup are important. Microsoft never lets it "just be." They make sure they crush competitors and leave consumers with no alternative, and then charge ridiculous prices for it.
 

$200

Banned
Why stop at the browser? We should force all the OS built-in programs to offer options. Want to play minesweeper? You must first choose from these 10000 minesweeper apps available before you can proceed.
 

Tacitus_

Member
If that was accurate, Apple was at 72% marketshare as recently as 2011. At what point does market dominance become market monopoly? One could argue that apple and Google combined have made all other phone and tablet OS' non-competitive with their business models. I'm pretty sure every Android device ships with Google browser/maps and a YouTube app.

As someone said above, this kind of ruling is stuck in a 2003 mindset where phones and tablets aren't all-purpose computing devices that compete with and often replace dedicated desktops. And Apple/Google are allowed to run wild while MS is fined and sanctioned into irrelevance in the PC space.

Firstly, MS has had ~90% marketshare for pretty much the past two decades. Apple enjoys that kind of market share for a few years at best. Secondly, just because the industry mindset has changed, you can't go around breaking your previous contracts. EU was well within their rights to fine MS for a percentage of their income for failing to comply for over a year.
 

phisheep

NeoGAF's Chief Barrister
If that was accurate, Apple was at 72% marketshare as recently as 2011. At what point does market dominance become market monopoly? One could argue that apple and Google combined have made all other phone and tablet OS' non-competitive with their business models. I'm pretty sure every Android device ships with Google browser/maps and a YouTube app.

As someone said above, this kind of ruling is stuck in a 2003 mindset where phones and tablets aren't all-purpose computing devices that compete with and often replace dedicated desktops. And Apple/Google are allowed to run wild while MS is fined and sanctioned into irrelevance in the PC space.

It's not about monopoly at all, it's about a dominant position. Depends on the market what dominant is (there was one case I recall where a market share of 40% was held to be dominant, I think because the rest of the market was very fragmented - I think that was the one about bananas).

And it's also about abuse of that position. Fair competition isn't abuse. Price cartels, restrictive distribution agreements, predatory pricing are abuse. As is deliberately conspiring to unfairly close off the market to competition, which is roughly what happened here.

The analogy with phones isn't an accurate one, as phones are usually proprietary products. PCs aren't.
 

jimi_dini

Member
Once they get a foothold, they introduce some arbitrary non standard to break competitors compatability, which then can't be replicated because Microsoft owns the rights to the technology.

Which wasn't even the first time they did something like that.

For example pre-release Windows 3.1 had a check in it (they called it AARD), which made it not work under anything but MS-DOS, which was purely artificial, because when someone from Digital Research figured it out and built a small TSR to fix that check, it worked totally fine without any problems whatsoever.

http://en.wikipedia.org/wiki/DR-DOS

They did something like that again for Windows 95 (and this time it wasn't just pre-release code only) and were sued for that as well. Microsoft was and is extremly shady. I mean look at the DOCX/XLSX crap that they introduced to a) force customers to upgrade to later office versions b) break compatibility with other office software, which were able to read DOC/XLS files pretty well - which took ages to reverse engineer.
 

CLEEK

Member
I can't believe this was a 'technical error'. Like the UK Apple vs Samsung ruling, I bet some MS execs though they could be dicks and outsmart the ruling. Only, like Apple, to find you don't mess with the explicit ruling of courts.

And knowing the sheer scale of the fine they would face, you would have though the ensuring the court mandated browser choice would be high on the priorities to check each time MS made a patch or change to Windows.

Seems really silly to be fining Microsoft now when they aren't even the leader in the sector anymore, chrome has by far the lions share of the market now.

Anti trust is highly anti consumer as it is, Microsoft can't give me a free text editor because other companies want to charge, great stuff i can't wait to pay all that money.

That is a naive interpretation of this. Monopolies by their very nature are anti-consumer. Competition is the force that drives down prices and provides more options for consumers. A monopoly doesn't. And when a company abuses its monopoly in one area to prevent competitors in another (which is basis of the anti-trust ruling against MS), it kills of competition in new areas too.

Monopolies = high prices and limited choice. The very definition of anti-consumer.
 

TheNatural

My Member!

I'm not pretending. The proof is still there. Just ask Notch or Gabe Newell what they think about Windows 8:

http://www.neowin.net/news/valves-gabe-newell-calls-windows-8-this-giant-sadness

Or better yet, look at the countless threads on 360's successor with DRM and anti-resell measures.

And oh, not to mention the thread we're in. Yeah I'm sure the simple act of adding options mandated by the EU just "skipped" some multi billion dollar monopolistic corporations mind.

Same Microsoft, different decade.
 
Incredible. All of the messed up business practices in the PC market, and this is what they go after? Fine HP and other companies who install software bundles on new machines and provide n information to the end-user on how to uninstall them. This should be criminal, especially if they default to run on startup. I can't even begin the amount of people I've had to help because bloatware like this sad pushed on them.

Go after the Laptop companies that advertise the actual hard drive size rather than what they make available. Go after CNET for defaulting users to install their download software rather than the actual software they're looking for. Go after the software that has tiny check boxes that install unwanted software. Go after the ask.com toolbar. Go after subscription software that boa down the user's computer months after it expired. Go after something that really matters.
 
This is why the EU is great.

No other government-esque entity has the balls to put down capitalist interests below those of the people.

Well, except Iceland - but we all know Iceland is special.
 

Razdek

Banned
This is a bunch of bullshit what the EU is doing to the company when they gave Google a slap on the wrist for their monopoly in search. So now if Microsoft wants to include new features and services to Windows they have to include the competition's product? Like if they want to set Sky Drive as the default online storage they would have to include drop box as an option?

What if they wanted to include One Note as the default note taking software on there do they have to suddenly include Evernote? When does it stop?
 

shandy706

Member
What about it, it would appear to be an even race at the moment.

tablet-market-share-march-2012.jpg


Don't know how reliable that particular source is, but I picked it from many graphs from varying sources that painted the same picture.

Was Apple fined in 2011?

Have they fined EA with Madden?
 

Arksy

Member
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].

Penalty clauses are valid contractual terms under EU law? I don't know why that surprises me, but it still does. The fact that no Court has been involved in this process troubles me deeply. This sort of thing wouldn't fly in Australia, fortunately.
 

Folstern

Member
Ha, funny stuff. "Technical error."

It's nice to see the EU hitting them in the only spot that hurts: their wallet. Next time they should follow court orders.
 

phisheep

NeoGAF's Chief Barrister
Penalty clauses are valid contractual terms under EU law? I don't know why that surprises me, but it still does. The fact that no Court has been involved in this process troubles me deeply. This sort of thing wouldn't fly in Australia, fortunately.

This one would be (as it would pretty well anywhere), because a penalty clause isn't a penalty clause if it is a genuine estimate of losses arising under the contract. And here that's just what it is, because the range of penalties available is laid down in law and it is precisely that penalty that Microsoft sought to avoid by settling as it did.

It would fly in Australia just as well.
 

fallagin

Member
God I just freaking love how the EU fights for a lot of consumer protections. Too bad the US doesn't care as much about consumers.
 
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