Microsoft’s anti-competitive behaviour has got them into trouble once again. This time it is the European Commission who is fining the company a record £680 million; this humungous amount is due Microsoft’s failure to abide by an earlier hearing in 2004. The ruling had stated that Microsoft were guilty of producing software that external coders had no access to; this withholding of code is the crux of the issue for fair commerce to continue in the software industry.
The fine comes as Microsoft has broken a trust ruling over payment of the original sum. There is however a large history of Microsoft clashing with the European Commission; in 2004 they received a fine of nearly five hundred million euros and a further three hundred million in 2006. This latest fine comes in addition to the previous fines and will surely be troubling Microsoft’s accountants who recently tried to buyout rival search site Yahoo. The breaking of the trust dealing is the primary issue, Microsoft are the first company for 50 years not to meet a trust decision.
The reluctance to allow competitors access to their software has got them into the proverbial hot water; mainly due to media player access and the close links between Windows and Internet Explorer, other software companies have been facing an unfair situation. The dominant position of Microsoft has been exploited to the extent that an external body has had to step in and curtail the actions of the software giant. For the European Commission, interoperability is the key issue arguing that it must be retained for a healthy marketplace; Microsoft however, have seemingly done all they can to create a situation where interoperability is impossible.
This however does not seem to be the end of Microsoft’s woes in Europe; the commission is pursuing them over further allegations that Microsoft are using their dominant position in the operating software market to gain unfair advantage over rival systems and PC sales. Added to this, interoperability issues with other systems are being raised once again. One thing can be deemed as certain; while Microsoft might be one of the richest companies in the world; it cannot afford the continued payment of such gargantuan fines indefinitely.
Related posts:
- Dark Chapter Closed: Microsoft Fined Record $1.4bn
- Microsoft Software Under Investigation In Europe
- Swings And Roundabouts For Microsoft
- Microsoft Face The European Commission Again
- future of Microsoft
