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March 24, 2004
Neelie Kroes, competition commissioner for the European Union, apparently earned her nickname because she's tough in the same vein as U.K. "Iron Lady" Margaret Thatcher.
Kroes, 64, is proving her moniker once again. On Wednesday, she slapped Microsoft with a $357.3 million (280.5 million euro) fine for failing to comply with the European Commission's landmark 2004 antitrust ruling.
When Kroes became the Commission's antitrust chief in fall 2004, she faced critics who feared that her previous stints on corporate boards would make her too pro-business.
But the former Netherlands transportation minister has demonstrated that she has no qualms about tangling with Fortune 500 companies. Just ask Microsoft.
On Wednesday, Kroes responded via e-mail to questions from CNET News.com about the fine.
Q: Now that the decision has been made to fine Microsoft, what methodology was used to determine the size of the fine? After all, a range of zero to 2 million euros per day is quite wide.
Kroes: The European Commission formally warned Microsoft in November last year that it would be liable to a daily penalty payment of 2 million euros per day should it, as from Dec. 15, 2005, not comply with its obligations to: (1) provide complete and accurate interoperability information; and (2) provide that information on reasonable terms.
The daily penalty payment of 1.5 million euros that the Commission has imposed today for noncompliance on the first of these points reflects the fact that the failure to provide complete and accurate interoperability information has largely eliminated the effectiveness of the remedy.
Video: EU fines Microsoft again
Neelie Kroes, Europe's competition commissioner, announces the ruling against Microsoft.
Therefore, the Commission has taken the view that Microsoft's failure to comply in this respect should at this stage constitute a larger part of the 2 million euros daily penalty payment identified in November 2005. This also means that the remainder of the 2 million euros per day (i.e. 0.5 million euros) may be imposed subsequently for the period in question, should the Commission come to the conclusion that the terms on which Microsoft has made the interoperability information available are not reasonable.
How did you determine the exact cutoff date for the fine? What were the specific events that occurred to make that particular date the one you chose?
Kroes: The cutoff date was June 20 this year. As Microsoft has been submitting a large amount of revised interoperability information after that date, it is not possible to make an assessment of whether Microsoft has complied with its obligations after then.
When did you notify Microsoft of your decision to fine the company and the size of the fine? What was the company's reaction?
Kroes: The decision was formally notified to the company this morning. I am afraid that I cannot therefore comment on Microsoft's reaction, and nor would it be appropriate for me to do so.
How confident are you that this fine will act as a deterrent to Microsoft in the future? And why do you feel this way?
Kroes: I regret that the Commission has had to take such a step today, but given Microsoft's continued noncompliance to date, I have been left with no alternative. Today's decision reflects my determination to ensure that Microsoft complies with its obligations. I sincerely hope that this decision, together with the higher potential daily penalty payment of 3 million euros from July 31, 2006, in the event of noncompliance after that date, will mean that Microsoft will now comply.
News.com Poll
Do you believe Microsoft answered your questions truthfully?
Kroes: Microsoft has claimed that its obligations in the decision are not clear, or that the obligations have changed. I cannot accept this characterization--Microsoft's obligations are clearly outlined in the 2004 decision and have remained constant since then.
Indeed, the monitoring trustee appointed in October 2005, from a shortlist put forward by Microsoft, believes that the decision clearly outlines what Microsoft is required to do. I must say that I find it difficult to imagine that a company like Microsoft does not understand the principles of how to document protocols in order to achieve interoperability.
Have you seen changes in the way Microsoft is handling Vista since making a public announcement in March that you also had antitrust concerns regarding its pending operating system?
Kroes: It is true that I informed Microsoft of my view that it should take into account the general principles of the 2004 decision when designing Vista in order to avoid potential problems when that product is released. Indeed, Microsoft sought input on these issues from the Commission. However, it is premature to speculate on Vista, since that product will not be launched until next year.
See more CNET content tagged:
euro, commission, obligation, antitrust, European Union
1. Global health:
-Gave The Global Alliance for Vaccines and Immunization a donation of US$750 million on 25 January 2005.
-Gave The Institute for OneWorld Health a donation of nearly US$10 million to support the organization's work on a drug for visceral leishmaniasis (VL).
-Gave the Children's Vaccine Program, run by the Program for Appropriate Technology in Health (PATH), a donation of US$27 million to help vaccinate against Japanese encephalitis on 9 December 2003.
-Gave approximately US$30 million for the foundation of the new Department of Global Health at the University of Washington in Seattle. The donation promoted three of the Foundation's target areas: education, Pacific Northwest and global health.
Alot of things about M$ stink but this is nothing more than a money grab by the eu.
Alot of things about M$ stink but this is nothing more than a money grab by the eu.
1. Global health:
-Gave The Global Alliance for Vaccines and Immunization a donation of US$750 million on 25 January 2005.
-Gave The Institute for OneWorld Health a donation of nearly US$10 million to support the organization's work on a drug for visceral leishmaniasis (VL).
-Gave the Children's Vaccine Program, run by the Program for Appropriate Technology in Health (PATH), a donation of US$27 million to help vaccinate against Japanese encephalitis on 9 December 2003.
-Gave approximately US$30 million for the foundation of the new Department of Global Health at the University of Washington in Seattle. The donation promoted three of the Foundation's target areas: education, Pacific Northwest and global health.
"... Microsoft does not understand the principles of how to document protocols in order to achieve interoperability."
Well, Microsoft DOES understand the principles of how to document protocols in order NOT to achieve interoperability.
"... Microsoft does not understand the principles of how to document protocols in order to achieve interoperability."
Well, Microsoft DOES understand the principles of how to document protocols in order NOT to achieve interoperability.
Not to mention the advances they have contributed to the IT industry. Do not tell me otherwise, if you even think that your are smallminded.
If not MS, then RedHat, whoever. IT has been placed into the hands of the common man. Internet connectivity has exploded in the past decade. Before Win95, who had access to the vast amount of info which they do today?
I don't care if it was MS or Novell or your grandma, someone was going to lead the charge of making PCs commonplace in the home. The marketplace was wide open and MS took the lead. No one ever stopped anyone from buying a Mac or a Linux system. Business is business, someone has to be #1 in the market. Maybe they will fine Lance Armstrong next cause no one from the the EU could beat him out. I guess that was unfair too.
If the EU doesn't like it tough. I wish MS would quit selling them software to be honest. Of course they would not since this would be a bad business decision. Let's see the EU develop their own OS and IT solutions and then we will fine them if they become successful.
Maybe they should fine Coca-Cola and KFC for holding out their secret recipes. What a joke. A bunch of whiners with their thunbs in their butt - didn't produce any of their own solutions, cannot compete so they cry no fair and stick their hands out.
I stopped using Windows a couple of weeks ago and I haven't regretted it. Ubuntu (a wonderful Linux distribution) fullfills most of my needs and it has several advantages that Microsoft never could have:
* It's free
* It's open so everyone who wants can change and contribute
* The developement is driving by what people wants and not what the company thinks that the people wants.
I must say in a childish way that I'm so happy that Microsoft got this fine to pay. Hopefully one day they will learn something good from the Linux and especially the Open Source community and implement it in a stable system.
-> yup, thats a given.
Not to mention the advances they have contributed to the IT industry. Do not tell me otherwise, if you even think that your are smallminded.
-> Ummm Microsoft didn't even have a TCP/IP stack until Win95. and who do you think created/invented the TCP/IP Protocol yep BSD/Unix (Berkeley System design) as well as DNS, sendmail,..., if it wasn't for BSD/Unix(and more important the truly Open BSD-License) the Internet
as "you" know it wouldn't even exist.
If not MS, then RedHat, whoever. IT has been placed into the hands of the common man.
->err was, thanks to Microsoft's DRM the common man (they hope)is now about to become a hunted prisoner of the Internet.
Internet connectivity has exploded in the past decade. Before Win95, who had access to the vast amount of info which they do today?
Yes i agree, and Its because of the "Internet" that Win95 was made -otherwise it was gonna be lights-out for Redmond-Microsoft.
I don't care if it was MS or Novell or your grandma, someone was going to lead the charge of making PCs commonplace in the home. The marketplace was wide open and MS took the lead. No one ever stopped anyone from buying a Mac or a Linux system. Business is business, someone has to be #1 in the market. Maybe they will fine Lance Armstrong next cause no one from the the EU could beat him out. I guess that was unfair too.
If the EU doesn't like it tough. I wish MS would quit selling them software to be honest. Of course they would not since this would be a bad business decision. Let's see the EU develop their own OS and IT solutions and then we will fine them if they become successful.
-> yes I agree, and case in point, I can't see how they could be un-successful with so many alternative and powerful NOS's like:
www.opensolaris.com (aka www.sun.com)
www.linux.org
www.freebsd.org
www.netbsd.org
www.openbsd.org
Maybe they should fine Coca-Cola and KFC for holding out their secret recipes. What a joke. A bunch of whiners with their thunbs in their butt - didn't produce any of their own solutions, cannot compete so they cry no fair and stick their hands out.
Actually, The Intenet as you rightuflly said "belongs" to the common man.
Therefore no single/multi entity and/or Corporation (and I DO Mean Microsoft) should try to own/control/manage it. They shouldn't muss around with something that was never theirs' to own in the first place -which brings us back to the purpose behind that most elegant of IT building-block Standards, the TCP/IP Protocol. So, try thinking of it this way, the EU wants to preserve and protect that most public of standards for their people, and maybe for the world if we would only clean the PooPoo out of our eyes, and ears. just as you would want to protect your own family -I would hope!
And that "Freedom" isn't just for Americans, its for all mankind.
Not to mention the advances they have contributed to the IT industry. Do not tell me otherwise, if you even think that your are smallminded.
If not MS, then RedHat, whoever. IT has been placed into the hands of the common man. Internet connectivity has exploded in the past decade. Before Win95, who had access to the vast amount of info which they do today?
I don't care if it was MS or Novell or your grandma, someone was going to lead the charge of making PCs commonplace in the home. The marketplace was wide open and MS took the lead. No one ever stopped anyone from buying a Mac or a Linux system. Business is business, someone has to be #1 in the market. Maybe they will fine Lance Armstrong next cause no one from the the EU could beat him out. I guess that was unfair too.
If the EU doesn't like it tough. I wish MS would quit selling them software to be honest. Of course they would not since this would be a bad business decision. Let's see the EU develop their own OS and IT solutions and then we will fine them if they become successful.
Maybe they should fine Coca-Cola and KFC for holding out their secret recipes. What a joke. A bunch of whiners with their thunbs in their butt - didn't produce any of their own solutions, cannot compete so they cry no fair and stick their hands out.
I stopped using Windows a couple of weeks ago and I haven't regretted it. Ubuntu (a wonderful Linux distribution) fullfills most of my needs and it has several advantages that Microsoft never could have:
* It's free
* It's open so everyone who wants can change and contribute
* The developement is driving by what people wants and not what the company thinks that the people wants.
I must say in a childish way that I'm so happy that Microsoft got this fine to pay. Hopefully one day they will learn something good from the Linux and especially the Open Source community and implement it in a stable system.
-> yup, thats a given.
Not to mention the advances they have contributed to the IT industry. Do not tell me otherwise, if you even think that your are smallminded.
-> Ummm Microsoft didn't even have a TCP/IP stack until Win95. and who do you think created/invented the TCP/IP Protocol yep BSD/Unix (Berkeley System design) as well as DNS, sendmail,..., if it wasn't for BSD/Unix(and more important the truly Open BSD-License) the Internet
as "you" know it wouldn't even exist.
If not MS, then RedHat, whoever. IT has been placed into the hands of the common man.
->err was, thanks to Microsoft's DRM the common man (they hope)is now about to become a hunted prisoner of the Internet.
Internet connectivity has exploded in the past decade. Before Win95, who had access to the vast amount of info which they do today?
Yes i agree, and Its because of the "Internet" that Win95 was made -otherwise it was gonna be lights-out for Redmond-Microsoft.
I don't care if it was MS or Novell or your grandma, someone was going to lead the charge of making PCs commonplace in the home. The marketplace was wide open and MS took the lead. No one ever stopped anyone from buying a Mac or a Linux system. Business is business, someone has to be #1 in the market. Maybe they will fine Lance Armstrong next cause no one from the the EU could beat him out. I guess that was unfair too.
If the EU doesn't like it tough. I wish MS would quit selling them software to be honest. Of course they would not since this would be a bad business decision. Let's see the EU develop their own OS and IT solutions and then we will fine them if they become successful.
-> yes I agree, and case in point, I can't see how they could be un-successful with so many alternative and powerful NOS's like:
www.opensolaris.com (aka www.sun.com)
www.linux.org
www.freebsd.org
www.netbsd.org
www.openbsd.org
Maybe they should fine Coca-Cola and KFC for holding out their secret recipes. What a joke. A bunch of whiners with their thunbs in their butt - didn't produce any of their own solutions, cannot compete so they cry no fair and stick their hands out.
Actually, The Intenet as you rightuflly said "belongs" to the common man.
Therefore no single/multi entity and/or Corporation (and I DO Mean Microsoft) should try to own/control/manage it. They shouldn't muss around with something that was never theirs' to own in the first place -which brings us back to the purpose behind that most elegant of IT building-block Standards, the TCP/IP Protocol. So, try thinking of it this way, the EU wants to preserve and protect that most public of standards for their people, and maybe for the world if we would only clean the PooPoo out of our eyes, and ears. just as you would want to protect your own family -I would hope!
And that "Freedom" isn't just for Americans, its for all mankind.
You obviously haven't thought this one through.
Please! Please! Please! Do it M$! Walk away and improve the desktop for generations to come!
You obviously haven't thought this one through.
Please! Please! Please! Do it M$! Walk away and improve the desktop for generations to come!
All the double talk will not change the fact that a monopoly is NOT the same as a free market. And that monopoly has done nothing more then enhance its' own interests at the expense of everyone else.
To this day, M$ is unable to create any software that could survive without the advantage of their desktop. Unfortunately they have managed to kill any real competition while it was still in the womb.
Your argument is just smoke and mirrors and would convince only those who still can't manage to install a program on their own. If M$ continues to abuse it's power to circumvent the public benefits of a free market then let them pay the price for their arrogance.
As for bundling IE with Windoze.. why not bundle Firefox and at least give people the choice? Because M$ is all about control - they want to impose their own "standards" (compare IE6 & IE7 W3C compliancy compared to the open-source alternatives), they need people to depend on their software - otherwise they have no market. Rather than make it appealing they are relying on the fact that most people use their products - not generally out of choice but because they are not aware of any choice.
Personally, I use Linux, Firefox and Open Office to run my business - not out of anti-Microsoft sentiment but because it's much, much better.
All the double talk will not change the fact that a monopoly is NOT the same as a free market. And that monopoly has done nothing more then enhance its' own interests at the expense of everyone else.
To this day, M$ is unable to create any software that could survive without the advantage of their desktop. Unfortunately they have managed to kill any real competition while it was still in the womb.
Your argument is just smoke and mirrors and would convince only those who still can't manage to install a program on their own. If M$ continues to abuse it's power to circumvent the public benefits of a free market then let them pay the price for their arrogance.
As for bundling IE with Windoze.. why not bundle Firefox and at least give people the choice? Because M$ is all about control - they want to impose their own "standards" (compare IE6 & IE7 W3C compliancy compared to the open-source alternatives), they need people to depend on their software - otherwise they have no market. Rather than make it appealing they are relying on the fact that most people use their products - not generally out of choice but because they are not aware of any choice.
Personally, I use Linux, Firefox and Open Office to run my business - not out of anti-Microsoft sentiment but because it's much, much better.
Please! Please! Please! Do it M$! Walk away and improve the desktop for generations to come!
It's not about ego, just the bottomline... how much will be the net benefit to the company
- MS should pull all products and support from eu
- by rippinchikkin July 12, 2006 5:14 PM PDT
- If I were Microsoft I would say FINE too, who needs a bunch of communist ingrates. MS needs sales in the (ooooh) EU like I need a third shoe. I would pull all products; all support for any currently owned products and let them FINE that if you will. The EU is not the end all to be all, and IMHO it will be the down fall of Europe. (You guys give up your individual identity to let some bureaucrats dictate policy and take away your money, and give you that play money, ah the euro, only worth something to all those lying, stealing politicians at the head of the EU)
- Reply to this comment
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- If I may repeat myself!
- by Mister C July 12, 2006 5:23 PM PDT
- The best thing that could possibly happen would be for M$ to walk away from Europe. Imagine all that brainpower going toward open source. That wouldn't just be shooting themselves in the foot. It would be more like dropping a grenade down their pants!
- View reply
Processing -
- It's all about bottomline....
- by ggupta7 July 13, 2006 1:10 PM PDT
- If MS thinks it can make more that $357 million in EU in the future, it will pay the fine... otherwise it won't (unless they are legally bound to pay).
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Showing 1 of 3 pages (118 Comments)Please! Please! Please! Do it M$! Walk away and improve the desktop for generations to come!
It's not about ego, just the bottomline... how much will be the net benefit to the company