Microsoft Fined ¤280.5 Million
By Ann Cahill, Europe Correspondent
SOFTWARE giant Microsoft has been fined Û280.5 million by the European Commission for failing to share information with rivals.
This is the latest round in the commissionÕs eight-year battle with the worldÕs biggest software company, which is accused of abusing its near monopoly of the worldÕs computer operating systems.
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The latest fine of Û1.5m a day results from MicrosoftÕs refusal to comply with a commission ruling in 2004.
It comes on top of the record Û497m fine imposed then and is the first time the commission has imposed a penalty for failing to comply with a previous order.
Compebreastion Commissioner Neelie Kroes said she regretted Microsoft has continued its illegal activity.
ÒI 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, she said.
She could have fined Microsoft up to 5% of their daily turnover, which would have been Û4.28m. Instead she limited the fine to Û1.5m a day but will increase it to Û3m a day from the end of July if they still have not complied.
The March 2004 decision insisted Microsoft give complete and accurate information to developers of work group server operating systems to allow them function with MicrosoftÕs Windows.
At present over 90% of the worldÕs personal computers come equipped with Windows and anybody wanting to run rival programmes need to buy and install a different operating system.
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Ms Kroes said they had in fact a monopoly and between 2002 and 2005 Microsoft was the only one to increase market share. They were to deliver sufficient information by June 2004 to allow their compebreastors to develop systems that could operate with Windows, but this has not happened.
They appealed the decision but the courts said they must comply with the commissionÕs demand while awaiting a court ruling.
They warned Microsoft last November that if they did not begin to provide the necessary information by mid-December they would face daily penalty payments of up to Û2m.
If royalty fees rivals have to pay for the information is too high the commission will impose a daily fine of Û500,000 backdated to last December.
Ms Kroes said that in the past three weeks Microsoft had Òdone an extremely good job in providing information but she wondered why they waited this long.
Microsoft said they would appeal the fine. It says it has 300 people working to put together the information required and hand it over by July 18.
Ms Kroes has warned Microsoft they must ensure their Vista operating system can be used by rival programmes when it launches next year.
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MICROSOFT, owned by the worldÕs wealthiest man, Bill Gates, has captured the computer software market and its operating system Windows runs over 90% of all personal computers.
Most PCs come with Windows already installed so it is just a matter of a few mouse clicks to run other Microsoft programmes such as Word, Excel and Powerpoint.
If you want to install and run alternative non-WindowsÕs programmes you have to buy another operating system, which means none of the Microsoft programmes will work on it.
The European Commission insists Microsoft has to share its technical information with its rivals so they can make their programmes run smoothly with Windows.
Microsoft has been slow to hand over the information Ñ so far the commission and its expert Prof Niall Barrett has got just 50% of it.
Microsoft says the commissionÕs directions were not clear, but following a visit to Commissioner Kroes by Microsoft chief executive Stephen Balmer the flow has improved and they aim to make the deadline of July 24 Ñ or even deliver the information earlier, by July 18.