The European Union declared Microsoft guilty on Wednesday of abusing its “near monopoly” with Windows to squeeze competitors in other markets and levied a record fine of 497,2-million euros ($613-million).
The EU’s antitrust authority said that “because the illegal behaviour is still ongoing”, it was also demanding changes in the way the United States software company operates.
It gave Microsoft 90 days to offer a version of Windows to PC manufacturers without its digital media player, and 120 days for Microsoft to release “complete and accurate” interface code to rivals in the server market so their products can have “full interoperability” with desktop computers running Windows.
“Dominant companies have a special responsibility to ensure that the way they do business doesn’t prevent competition and does not harm consumers and innovation,” EU Competition Commissioner Mario Monti said.
“Today’s decision restores the conditions for fair competition in the markets concerned and establish clear principles for the future conduct of a company with such a strong dominant position.”
Microsoft has just over two months to file its promised appeal.
It also is expected to ask the EU’s Court of First Instance to suspend the order during the appeal process, which could take years.
The order goes beyond the 2001 US settlement on similar antitrust charges and aims at the heart of Microsoft’s business strategy of regularly adding new features to Windows to help sell upgrades.
The US software giant argues such “bundling” benefits consumers but rivals call it unfair competition, given that Windows runs 90% of personal computers worldwide.
The Commission said it was “concerned” that such bundling “deters innovation and reduces consumer choice in any technologies which Microsoft could conceivably take an interest in and tie with Windows in the future”.
Under the order, Microsoft would be allowed to continue selling a version of Windows with its Media Player software installed, but it must refrain from “any commercial, technological or contractual terms” that would make the stripped-down version of Windows “less attractive or performing”.
Fearing attempts at price-setting would be overturned in court, the Commission did not order Microsoft to make the stripped-down version available at a discount. But it said Microsoft could not offer personal computer manufacturers a discount for buying the version of Windows with Media Player.
Money from the fine would be redistributed to the EU member states. – Sapa-AP
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