Friday, February 29, 2008

Microsoft Handed Record Fine by EU

By David Worthington

The European Union has levied a record-setting €899 million (US$1.35 billion) fine against Microsoft.

EU regulators are penalizing Microsoft for charging "unreasonable prices" to software developers for access to information about Windows client and server protocols prior to Oct. 22, 2007. The sanctions stem from the EU's 2004 antitrust ruling against the company, which was upheld in September 2007 by the European Court of First Instance in Luxembourg, the EU's second highest court. Microsoft was found to have abused its dominant market position as set forth in Article 82 of the Treaty establishing the European Community.

Microsoft was initially fined €497 million, or US$613 million in 2004, followed by an additional €280.5 ($357 million) in July 2006 for failing to obey the 2004 order. The cumulative fines amount to nearly €1.68 billion, or over $2.5 billion at today's rate.

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