Print 54 comment(s) - last by purefat.. on Jul 10 at 8:03 PM

Software giant balks at penalties

The European Union appears set to keep its hard-line stance against Microsoft’s allegedly anticompetitive tactics, and it is insisting on imposing a €899 million ($1.36 billion USD) fine on the company to keep its future actions in line.

Microsoft’s lawyers disagree, however, and entered a variety of arguments last May that the fine is too high, and was entered based upon “manifest errors” in the EU’s process. With copies of the arguments released publicly earlier this week (PDF), its demands to annul the fine are now available for perusal worldwide:

  • The EU “erred” in its decision to subject Microsoft to regular, periodic fines while the company released copies of its interoperability specifications, due to the fact that Microsoft’s pricing for the documentations was not in line with the EU’s definition of “reasonable,” – the EU never explicitly stated what it considered a “reasonable” price to be.
  • Further, licensing rates for information on its proprietary protocols – despite not passing the EU’s benchmark of reasonability – were more than 30 percent lower what industry experts PriceWaterhouseCoopers determined to be a fair price for “comparable technology.” (Ars Technica questioned this finding early last year, noting that in many cases ‘comparable technology’ was open source, and therefore free.)
  • Microsoft should not have been subjected to a “heightened patentability test,” where the innovation of its trade secrets was placed under scrutiny in order for the EU to decide whether or not Microsoft should have charged royalties for the use of its trade secrets.
  • The EU based some its assessment reports on documents obtained that courts later determined to be “unlawful.”
  • Microsoft was denied its “right” to be heard due to the EU’s failing to give Microsoft the opportunity to speak up after the period for which it was fined, preventing the company from “commenting on all relevant aspects of the case.”
  • And, simply, the fines imposed are “excessive and disproportionate,” particularly due to the fact that the EU chose to challenge its licensing practices.

Additionally, Microsoft previously appealed the fine to Europe’s Court of First Instance last May – however little has developed in the appeal since its filing.

The company’s trouble began in 2004 when the EU demanded Microsoft provide competitors the ability to connect to software running under its Windows platform (applications like Exchange and Active Directory). Third-party attempts to connect to Microsoft technologies have, typically, been written by reverse engineering the company’s communications protocols.

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RE: Fight and win
By Aloonatic on 7/9/2008 7:53:11 AM , Rating: 3
Yeah, pull out of the EU entirely.

Most Windows and Office products on EU systems are pirated anyway.

Luckily China and India etc all use legitimate copies, so MS will be fine.

MS shareholders will be delighted at the news that they have lost 500M customers in the developed world over night.

$1.4BN does seem rather steep however.

I can't wait for my payout as an EU "citizen".

Happy Days.

*rubs hands together awaiting cheque through the door and anticipates the Intel Fine.

Who's next?

RE: Fight and win
By ikkeman2 on 7/9/2008 8:38:41 AM , Rating: 3
$1.4billion / 500million poeple = < $3.00 per person...

< €2.00

* scratches behind his ear and goes to take a leak

RE: Fight and win
By Aloonatic on 7/9/2008 8:46:32 AM , Rating: 2
Oh no

It's only £1.44 per EU Citizen

And I've already paid a down payment on my speed boat :-s


RE: Fight and win
By MrBlastman on 7/9/2008 9:28:32 AM , Rating: 2
You know, on many levels, pull out of the EU is exactly what they should do. But, I would only attempt this if Bill and Steve were to remain at the helm.

It is clear they are unwanted there so they should just jump ship. Ignore the fact that most US businesses use Office and Microsoft products - just run away.

The EU would then be forced to either:

a. adopt something else - and get the rest of the world to do it
b. suck it up and let Microsoft back in

Either way, weather you are a Microsoft lover or hater, it would be an interesting drama to watch indeed. More interesting than say - you stepped on my line in the pavement, I'm suing you!

RE: Fight and win
By Aloonatic on 7/9/08, Rating: 0
RE: Fight and win
By bnutz on 7/9/2008 11:06:51 AM , Rating: 3
Then they would just go after Apple, which I am surprised they have not done yet since they do they same thing with their software.

RE: Fight and win
By SiN on 7/10/2008 2:10:38 PM , Rating: 2
I cannot wait for Apple to be disected and scrutinized... its far overdue!

Shame on the EU, they have overstepped the mark... but then again, so have microsoft, just not lately.

RE: Fight and win
By Screwballl on 7/9/08, Rating: 0
RE: Fight and win
By Strunf on 7/10/2008 6:31:16 AM , Rating: 2
The EU would pick a... and btw the rest of the world as you call it is eager to change to something else than windows, who knows if the EU wouldn't start the global trend...

“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs
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