EC Threatens Fines If Microsoft Delays Sanctions Implementation

by Ulrika Lomas, for LawAndTax-News.com, Brussels

03 February 2005

Following Microsoft's announcement last month that it plans to comply with antitrust sanctions imposed upon it by the European Commission, the EC has warned that if the firm delays their implementation, it may end up facing hefty fines.

In a statement released in late January, the software giant announced that:

"Rather than seeking to suspend the Commission's remedies, Microsoft's focus now is on working constructively with the Commission on their full and prompt implementation. To that end, Microsoft has made available licensing information for communications protocols and has made available the first versions of Windows without media functionality to computer manufacturers."

It went on to add: "We will continue our appeal on the merits of the Commission's decision...We remain very optimistic as we move forward in this process and are encouraged that the December court order noted a number of Microsoft arguements that could provide a basis for overturning the Commission's decision."

Speaking to Reuters on Friday, EC spokesman Jonathon Todd indicated that the Commission is taking a hard line on the matter, observing that:

"We obviously expect the remedies to be complied with within a matter of weeks - measured from last December - rather than months."

He went on warn that the regulation "allows the Commission to decide to impose penalty payments up to 5% of Microsoft's average daily turnover" if the necessary measures are not implemented within the EC's time frame.

Mr Todd also told Reuters that Microsoft must refrain from introducing terms which would make the version of its Windows operating system which does not contain Media Player technology less attractive than the version which contains it.

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