European Commission Increases Daily Fine Against Microsoft for Antitrust Noncompliance

The European Commission has taken a hard stance against Microsoft, increasing the daily penalty for noncompliance with an antitrust ruling from €2 million to €3 million. This decision comes after Microsoft failed to provide technical information about its Windows operating system to rival software makers, as ordered by the commission in 2004. The commission has expressed concerns that Microsoft's previous fine of €497 million in 2004 may not have been sufficient to deter the company from continuing to disobey the ruling.

Key Takeaways:

• The European Commission has increased the daily fine against Microsoft for noncompliance with an antitrust ruling from €2 million to €3 million.
• The commission has accused Microsoft of withholding technical information about its Windows operating system from rival software makers, amounting to an abuse of Windows' dominance.
• Microsoft has argued that the commission's demands were unclear and has claimed that it finally understands what the commission is looking for after oral arguments in the spring.
• The commission has denied setting deadlines for Microsoft's submission of technical information, despite Microsoft's claims that it had agreed on a timetable with the monitoring trustee and itself.
• Microsoft will be allowed to charge rivals for rights to license the technical information it will submit to the European Commission, but the company and the regulator have yet to agree on a suitable price.
• The commission will take at least two months to assess the final installment of technical information and may waive the new fine if the submission is deemed satisfactory.

Statistics:

• The new daily fine against Microsoft for noncompliance is €3 million.
• The total fine for the period from December 15, 2004, to the present could be as high as €400 million.
• The 2004 fine against Microsoft was €497 million.
• The commission will take at least two months to assess the final installment of technical information to be submitted on July 18.
• The commission has the possibility to waive the new fine if the submission is deemed satisfactory.

Sources:

• A person familiar with the European Commission's thinking, speaking on the condition of anonymity.
• The European Commission.
• Microsoft Corporation.