July 12, 2006 1:30 PM PDT

Even Microsoft has to serve detention

by Michelle Meyers
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Listening to the European Union's Neelie Kroes say "I don't buy Microsoft's line that they didn't know what was being asked of them..." after slapping the company with a $357 million fine, reminds us of a school principal unwilling to hear excuses and sticking to the said punishment.

Msftfine

Sure, Microsoft workers have reportedly been working day and night to come up with data required to comply with the European Commission's landmark 2004 antitrust ruling. But some are wondering if the software behemoth was just calling Europe's bluff, like the smart, popular teacher's pet who always manages to skirt any real penalty for bad behavior.

Instead, the commission is making an example out of Microsoft, although it should be noted that while fine seems mammoth, it only amounts to about 10 days of the company's profits. Still, Microsoft is kicking and screaming, in the form of an appeal to the fine.

Blog community response:

"Microsoft can complain all day and night about unfair rulings and unclear requirements, but if it wants to continue having unfettered access to the lucrative European market, it seems the company has little choice but to toe the line on this one."
--Engadget

"To some extent, the EU fines on non-compliance with their documentation directive are a fine on Microsoft??s past internal sloppy practices (typical of many software development organizations). Presumably (and this may be a stretch) Microsoft has found internal benefits from producing detailed documentation on its internal software interfaces. And this effort with 300 people it just bringing all the old stuff up to contemporary software engineering standards."
--Common Sense Technology

"Here's the worst part of the socialist attack upon Microsoft: The EU is requiring the software giant 'to divulge information on Windows needed by makers of rival products.'...This then begs the question: What's the incentive to be original if your innovation can only go so far before competitors are given equal access, via government regulation, to your creativity?"
--The Liberty Precept

"With Bill Gates fading out this is a major hassle for Ray Ozzie and the new decision makers. But it doesn??t pay to ignore Europe??s regulators. In case of Microsoft, well if you don??t learn from the past, you pay ?? megamillions, which you can earn back in a couple of days, shall we say!"
--GigaOM

Michelle Meyers is an associate editor who tracks online happenings in media, entertainment, and politics. E-mail Michelle.
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