Microsoft Fined For Failing To Comply With EC Decision

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

14 July 2006

The European Commission announced on Wednesday that it has imposed a penalty payment of EUR280.5 million on Microsoft for the firm's continued non-compliance with some of its obligations under the Commission’s March 2004 Decision.

That Decision found that Microsoft had abused its dominant position under Article 82 EC, and required Microsoft to disclose complete and accurate interface documentation which would allow non-Microsoft work group servers to achieve full interoperability with Windows PCs and servers.

Wednesday’s Decision finds that as of June 20 this year, Microsoft had not fulfilled this obligation. Should Microsoft continue to fail to comply, the Decision also increases the amount of the daily penalty payment to which Microsoft could be subject to EUR3 million per day.

“The Commission is obliged to ensure compliance with EU law, and I have always underlined my determination to ensure that Microsoft fully implements the Commission’s March 2004 Decision”, announced European Competition Commissioner Neelie Kroes.

She continued:

“I regret that, more than two years after the Decision, and despite an Order from the President of the Court of First Instance that the Microsoft appeal to the Court does not suspend Microsoft’s obligation to comply, Microsoft has still not put an end to its illegal conduct."

"I have no alternative but to levy penalty payments for this continued non-compliance. No company is above the law. Any businesses operating in the EU must obey EU law I sincerely hope that the latest technical documentation being delivered by Microsoft will finally bring them into compliance and that further penalty payments will not prove necessary."

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