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Microsoft fined for frustrating interoperability

The EU Commission has imposed a fine of 280.5 million Euros ($358 million) on Microsoft.  From their press release:

The European Commission has imposed a penalty payment of 280.5 million on Microsoft for its continued non-compliance with some of its obligations under the Commissions March 2004 Decision (see IP/04/382). That Decision found that Microsoft had abused its dominant position under Article 82 EC, and required Microsoft to disclose complete and accurate interface documentation which would allow non-Microsoft work group servers to achieve full interoperability with Windows PCs and servers. Todays Decision, adopted under Article 24(2) of Regulation 1/2003, finds that Microsoft has not fulfilled this obligation. Should Microsoft continue to fail to comply, the Decision also increases the amount of the daily penalty payment to which Microsoft could be subject to 3 million per day.

The Commission is obliged to ensure compliance with EU law, and I have always underlined my determination to ensure that Microsoft fully implements the Commissions March 2004 Decision, said European Competition Commissioner Neelie Kroes. I regret that, more than two years after the Decision, and despite an Order from the President of the Court of First Instance that the Microsoft appeal to the Court does not suspend Microsofts obligation to comply, Microsoft has still not put an end to its illegal conduct. I have no alternative but to levy penalty payments for this continued non-compliance. No company is above the law. Any businesses operating in the EU must obey EU law I sincerely hope that the latest technical documentation being delivered by Microsoft will finally bring them into compliance and that further penalty payments will not prove necessary.

I suppose I ought to point out that it was Microsoft's dominant market position that made the issue of interoperability a matter of law.

In the CAD industry, we have a few companies with dominant market positions, and they too have been playing games with interoperability.  I wonder how big a fine it would take to wake them up? 

Posted on Wednesday, July 12, 2006 at 09:18AM by Registered CommenterEvan Yares in , | CommentsPost a Comment

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