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Microsoft faces additional fines for not having yet complied with the 2004 antitrust order through which it was ordered to provide the complete and accurate interface documentation ensuring other companies to write software that would work on systems running Windows .
The Commission considered in 2004 that Microsoft had abused its position in the software market as its operation system Windows, used on more than 95% of the PCs in the world, did not allow sufficient interoperability for other software producers.
Microsoft had already been fined with 479 million euro and another fine of 280.5 million euro was established by the EC for Microsoft not having observed the 19 July deadline. Now, the penalties will increase from 2 to 3 million euro per day in case the company does not meet the new deadline established for 23 November 2006.
After that date, the information to be received from Microsoft will be supplied to its competitors to decide whether it is enough for interoperability.
Although Microsoft has said that it is ready to provide the remaining information, the Commission seems to have lost its patience on the matter. Commissioner Neelie Kroes stated to the UK newspaper The Guardian: "I am not impressed if someone says 90% of the information is already there when we need 100%. It's a jigsaw and some parts are missing. In my opinion, this information should have been here a couple of months ago."
Microsoft's new operating system Vista that had been initially scheduled for the middle on 2006 has been largely affected by this issue. Microsoft had to agree to make changes to Vista as EU threatened to ban it based on concerns that the software included in the operating system was violating antitrust laws. This delay in releasing Vista on the market is estimated to have cost Microsoft about 80 million euro per month and to have caused a drop of 20% in sales on the PC market. Microsoft is now planning to launch the product on 30 January 2007.
In case the Commission and other software companies are pleased with the documents Microsoft is expected to provide, Microsoft will decide how much to charge for licenses and, in case the Commission finds the cost too high, it can again fine the US company.
Professor Neil Barrett, the Commission's 'monitoring trustee' will help the Commission interpret the information provided by Microsoft and will monitor the compliance with the Commission's decisions.
Microsoft has still not complied with 2004 ruling, says Commission
(17.11.2006)
http://www.out-law.com/default.aspx?page=7490
EU threatens Microsoft with new fines (15.11.2006)
http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=194400583
EU sets Microsoft deadline, warns patience is thin (15.11.2006)
http://today.reuters.com/news/articleinvesting.aspx?type=governmentFil...
Microsoft Vista operating system to be released on 30th January 2007
(12.11.2006)
http://www.marketoracle.co.uk/Article120.html
EDRI-gram : Microsoft Vista gets criticism before its launching in Europe
(27.09.2006)
http://www.edri.org/edrigram/number4.18/vista