Microsoft Faces Fresh Financial Penalties Over EU Antitrust Ruling

Strategic Insights -

Neelie Kroes, the European Union's competition commissioner, has told Microsoft chief executive Steve Ballmer that the company faces fresh financial penalties unless it complies soon with the EU's landmark antitrust ruling. The two leaders met in Brussels, a meeting that came more than a year after Mr Ballmer's last trip to the EU capital, where he attempted to persuade Ms Kroes' predecessor, Mario Monti, not to rule against the group. The EU ruling, imposed in March 2004, ordered Microsoft to pay a record €497m penalty and change its business practices, including modifying its flagship Windows operating system.

Key Takeaways:

  • Microsoft faces fresh financial penalties from the EU unless it complies with the March 2004 antitrust ruling.
  • The company has yet to implement key parts of the Commission order, with the two sides continuing to argue over the precise meaning of the decision.
  • The EU Commission's patience is "limited" and will run out in "weeks rather than months".
  • Failure to comply with the ruling could result in daily fines worth up to 5% of Microsoft's global daily turnover, or up to $5m.
  • Microsoft has been ordered to modify its Windows operating system and change its business practices as part of the Commission order.

Statistics:

  • €497m: The record penalty imposed on Microsoft by the EU in March 2004.
  • 5%: The maximum percentage of global daily turnover that Microsoft could face in daily fines.
  • $5m: The maximum daily fine that Microsoft could face if it fails to comply with the EU ruling.
  • Over 1 year: The amount of time that has passed since the EU ruling was imposed, with key parts of the Commission order yet to be implemented.

Sources:

  • "EU Tells Microsoft of Fresh Financial Penalties" (Financial Times, [No Date Specified])
  • "Kroes Tells Microsoft of Fresh Penalties" (The Times, [No Date Specified])