The European Union on Wednesday (6th March, 2013)
fined Microsoft Corporation $732 million for failing to offer consumers who use
the company’s Windows operating system a choice of web browser.
This is a charge that is expected to act as a warning to other technology firms involved in antitrust disputes with the EU.
An EU investigation into the case found out that Microsoft breached the agreement in software that was issued out between May 2011 and July 2012, which meant 15 million users were never aware that they could choose.
“Legally binding commitments reached in antitrust decisions play a very important role in our enforcement policy,” the EU’s competition commissioner, Joaquin Almunia said at a press conference in Brussels.
“A failure to comply is a very serious infringement that must be sanctioned accordingly.”
The fine could be said to be lenient as it was reported Microsoft could have been charged up to 10% of its global turnover during the time of the breach, which is around $7.9 billion.
This is the first time the EU’s antitrust authority, has fined a company for non-compliance with agreed commitments.
However Microsoft on its part has apologized through the New York Times, “We take full responsibility for the technical error that caused this problem and have apologized for it.”
“We have taken steps to strengthen our software development and other processes to help avoid this mistake – or anything similar – in the future.”
There are reports that Google is involved in a dispute with the commission about how it ranks search results.
There are also rumours Google leaked the story of Microsoft’s breach to EU. Who knows whether Google will be the next to get lashes from the cane it handed to EU?
This will serve as a warning for other companies about agreements with consumers.
This is a charge that is expected to act as a warning to other technology firms involved in antitrust disputes with the EU.
 | |
| Microsoft Corporation |
EU said the US Company had broken a legal agreement made in
2009 to ensure consumers had a choice of browser, rather than defaulting to
Microsoft’s Internet Explorer.
An EU investigation into the case found out that Microsoft breached the agreement in software that was issued out between May 2011 and July 2012, which meant 15 million users were never aware that they could choose.
“Legally binding commitments reached in antitrust decisions play a very important role in our enforcement policy,” the EU’s competition commissioner, Joaquin Almunia said at a press conference in Brussels.
“A failure to comply is a very serious infringement that must be sanctioned accordingly.”
The fine could be said to be lenient as it was reported Microsoft could have been charged up to 10% of its global turnover during the time of the breach, which is around $7.9 billion.
This is the first time the EU’s antitrust authority, has fined a company for non-compliance with agreed commitments.
However Microsoft on its part has apologized through the New York Times, “We take full responsibility for the technical error that caused this problem and have apologized for it.”
“We have taken steps to strengthen our software development and other processes to help avoid this mistake – or anything similar – in the future.”
There are reports that Google is involved in a dispute with the commission about how it ranks search results.
There are also rumours Google leaked the story of Microsoft’s breach to EU. Who knows whether Google will be the next to get lashes from the cane it handed to EU?
This will serve as a warning for other companies about agreements with consumers.
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EU fines Microsoft $732m for breach of agreement