Microsoft fined by European Commission over web browser - GoFuckYourself.com

wehateporn · 03-06-2013, 05:18 AM

http://www.bbc.co.uk/news/technology-21684329

"Microsoft has been fined 561 million euros ($731m; £484m) for failing to promote a range of web browsers, rather than just Internet Explorer program, to users in the European Union (EU).

It introduced a Browser Choice Screen pop-up in March 2010 as part of a settlement following an earlier EU competition investigation.

But the US company dropped the feature in a Windows 7 update in February 2011.

Microsoft said the omission had been the result of a "technical error".

But competition commissioner Joaquin Almunia said the action was unprecedented, adding he wanted to deter any company from the "temptation" of reneging on such a promise.

In theory the watchdog could have fined the firm 10% of its global annual revenue, which would have totalled $7.4bn based on its 2012 report.

"The European Commission is sending a firm signal in this first case of its type that it will not tolerate failure by a company to comply with the commitments it gave to settle an antitrust infringement procedure," said Tony Woodgate, a competition lawyer at Simmons & Simmons.

"These 'commitments decisions' are currently the European Commission's favoured mechanism to close abuse of dominance proceedings, saving enforcement resource and allowing for a speedy resolution."
Browser 'oversight'

The case dates back to 2007 when Opera - a Norwegian web-browser maker - complained Microsoft was stifling competition on PCs by bundling Internet Explorer with its operating system.

Microsoft initially argued that the move benefited users, but after the European Commission issued a preliminary report suggesting the firm had abused its position, the company agreed to offer a choice of browser until at least 2014 to avoid risking a fine.

However, this option was missing from its Windows 7 Service Pack 1 released in 2011 and it continued to be absent for 14 months.

During that time, Microsoft reported it was still complying with the agreement.

After the EU was alerted to the problem, it contacted Microsoft, which subsequently issued an apology suggesting its engineers had accidentally missed the issue.

It added that it had "taken steps to strengthen our internal procedures to help ensure something like this cannot happen again".

It also acted to restore the facility. But the move was not enough to prevent an eight-month follow-up investigation by the commission into what punishment was needed.
Warning to others

At a press conference in Brussels, Mr Almunia said Microsoft's lack of compliance represented a "serious breach" and was the first time a firm had failed to meet such a commitment.

He explained that he preferred negotiated settlements, rather than extended legal battles, when tackling competition complaints in the fast moving IT sector.

But he added that Microsoft's willingness to co-operate with the EU's subsequent investigation had acted as a mitigating factor when determining the level of the fine.

"I hope this will make companies think twice before they ever thinking of breaching their international obligations," said the commissioner.

Microsoft's chief executive Steve Ballmer and the former head of its Windows division Steven Sinofsky have already had their most recent bonuses docked, in part because of the browser affair.

"While it's highly likely that it was a technical mistake that broke the browser choice facility the fact that it remained broken for 14 months raises significant questions about Microsoft's ability and willingness to comply with the voluntary agreement with the EU," Chris Green, principal analyst at the consultants Davies Murphy Group Europe, told the BBC.

"At the same time the situation also raises concerns over the EU's ability to actually monitor the outcomes of antitrust agreements."

Matt 26z · 03-06-2013, 05:33 AM

Why isn't MS forced to provide a choice of calculators and notepads?

wehateporn · 03-06-2013, 05:38 AM

Quote:

Originally Posted by Matt 26z

Why isn't MS forced to provide a choice of calculators and notepads?

Probably because there's not much money to be made in a basic calculator and a basic notepad, so nobody kicks up a fuss

wehateporn · 03-06-2013, 05:40 AM

All OK for Apple, at least for the time-being

How can the EU accuse Microsoft of stifling competition, but Apple gets a pass?

http://www.digitaltrends.com/mobile/...e-gets-a-pass/

MaDalton · 03-06-2013, 05:41 AM

Quote:

Originally Posted by Matt 26z

Why isn't MS forced to provide a choice of calculators and notepads?

thats not the point - they had been already sentenced and accepted the fine - they just did it again.

MaDalton · 03-06-2013, 06:09 AM

Quote:

Originally Posted by wehateporn

All OK for Apple, for the time-being

How can the EU accuse Microsoft of stifling competition, but Apple gets a pass?

http://www.digitaltrends.com/mobile/...e-gets-a-pass/

because you cant have a monopoly when you have 5% market share?

tokmansta · 03-06-2013, 07:31 AM

The income probably outweighs the fines by a longshot

Matt 26z · 03-06-2013, 09:38 AM

Do they fine car makers for including their own radio in the car instead of giving buyers a choice of what brand radio they want?

OMG! My Panasonic flashlight came with Panasonic batteries. I wanted Duracell in there!

_Richard_ · 03-06-2013, 09:42 AM

sounds ridiculous

SGS · 03-06-2013, 09:45 AM

European Commission = The most stupid fucking idea ever.

MPGdevil · 03-06-2013, 10:12 AM

Why not force them to link to all Linux distributions and give out $100 coupons to the Apple store while at it? After all It's the most used OS running on the majority of consumer PCs

03-06-2013, 05:18 AM	#1
wehateporn Promoting Debate on GFY Industry Role: Join Date: Apr 2007 Posts: 27,173	Microsoft fined by European Commission over web browser http://www.bbc.co.uk/news/technology-21684329 "Microsoft has been fined 561 million euros ($731m; £484m) for failing to promote a range of web browsers, rather than just Internet Explorer program, to users in the European Union (EU). It introduced a Browser Choice Screen pop-up in March 2010 as part of a settlement following an earlier EU competition investigation. But the US company dropped the feature in a Windows 7 update in February 2011. Microsoft said the omission had been the result of a "technical error". But competition commissioner Joaquin Almunia said the action was unprecedented, adding he wanted to deter any company from the "temptation" of reneging on such a promise. In theory the watchdog could have fined the firm 10% of its global annual revenue, which would have totalled $7.4bn based on its 2012 report. "The European Commission is sending a firm signal in this first case of its type that it will not tolerate failure by a company to comply with the commitments it gave to settle an antitrust infringement procedure," said Tony Woodgate, a competition lawyer at Simmons & Simmons. "These 'commitments decisions' are currently the European Commission's favoured mechanism to close abuse of dominance proceedings, saving enforcement resource and allowing for a speedy resolution." Browser 'oversight' The case dates back to 2007 when Opera - a Norwegian web-browser maker - complained Microsoft was stifling competition on PCs by bundling Internet Explorer with its operating system. Microsoft initially argued that the move benefited users, but after the European Commission issued a preliminary report suggesting the firm had abused its position, the company agreed to offer a choice of browser until at least 2014 to avoid risking a fine. However, this option was missing from its Windows 7 Service Pack 1 released in 2011 and it continued to be absent for 14 months. During that time, Microsoft reported it was still complying with the agreement. After the EU was alerted to the problem, it contacted Microsoft, which subsequently issued an apology suggesting its engineers had accidentally missed the issue. It added that it had "taken steps to strengthen our internal procedures to help ensure something like this cannot happen again". It also acted to restore the facility. But the move was not enough to prevent an eight-month follow-up investigation by the commission into what punishment was needed. Warning to others At a press conference in Brussels, Mr Almunia said Microsoft's lack of compliance represented a "serious breach" and was the first time a firm had failed to meet such a commitment. He explained that he preferred negotiated settlements, rather than extended legal battles, when tackling competition complaints in the fast moving IT sector. But he added that Microsoft's willingness to co-operate with the EU's subsequent investigation had acted as a mitigating factor when determining the level of the fine. "I hope this will make companies think twice before they ever thinking of breaching their international obligations," said the commissioner. Microsoft's chief executive Steve Ballmer and the former head of its Windows division Steven Sinofsky have already had their most recent bonuses docked, in part because of the browser affair. "While it's highly likely that it was a technical mistake that broke the browser choice facility the fact that it remained broken for 14 months raises significant questions about Microsoft's ability and willingness to comply with the voluntary agreement with the EU," Chris Green, principal analyst at the consultants Davies Murphy Group Europe, told the BBC. "At the same time the situation also raises concerns over the EU's ability to actually monitor the outcomes of antitrust agreements." __________________ Sexy Girls Teasing

03-06-2013, 05:40 AM	#4
wehateporn Promoting Debate on GFY Industry Role: Join Date: Apr 2007 Posts: 27,173	All OK for Apple, at least for the time-being How can the EU accuse Microsoft of stifling competition, but Apple gets a pass? http://www.digitaltrends.com/mobile/...e-gets-a-pass/ __________________ Sexy Girls Teasing Last edited by wehateporn; 03-06-2013 at 05:43 AM..

03-06-2013, 09:45 AM	#10
SGS Confirmed User Industry Role: Join Date: Dec 2002 Location: Mallorca - Nottingham Posts: 5,176	European Commission = The most stupid fucking idea ever. __________________ See sig...

03-06-2013, 05:33 AM	#2
Matt 26z So Fucking Banned Industry Role: Join Date: Apr 2002 Location: ¤ª"˜¨๑۩۞۩๑¨˜"ª¤ Posts: 18,481	Why isn't MS forced to provide a choice of calculators and notepads?

03-06-2013, 07:31 AM	#7
tokmansta Confirmed User Industry Role: Join Date: Jan 2013 Posts: 566	The income probably outweighs the fines by a longshot

03-06-2013, 09:38 AM	#8
Matt 26z So Fucking Banned Industry Role: Join Date: Apr 2002 Location: ¤ª"˜¨๑۩۞۩๑¨˜"ª¤ Posts: 18,481	Do they fine car makers for including their own radio in the car instead of giving buyers a choice of what brand radio they want? OMG! My Panasonic flashlight came with Panasonic batteries. I wanted Duracell in there!

03-06-2013, 09:42 AM	#9
_Richard_ Too lazy to set a custom title Industry Role: Join Date: Oct 2006 Location: Earth Posts: 30,989	sounds ridiculous

03-06-2013, 10:12 AM	#11
MPGdevil Confirmed User Industry Role: Join Date: Nov 2005 Posts: 1,210	Why not force them to link to all Linux distributions and give out $100 coupons to the Apple store while at it? After all It's the most used OS running on the majority of consumer PCs