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EU Fines Microsoft Record $1.3B

Regulators punish company for overcharging Windows developers

By Jason Farago,  Newser Staff

Posted Feb 27, 2008 5:01 AM CST

(Newser) – The European Commission fined Microsoft today a record $1.35 billion for failing to comply with its 2004 antitrust ruling. The EU's executive branch said that the company continued to charge "unreasonable prices" to developers building programs for Windows despite both the earlier ruling and a court verdict last September. The fine is the largest ever for a single company, dwarfing the $613 million penalty the commission imposed on Microsoft in 2004.

"Microsoft was the first company in 50 years of EU competition policy that the commission has had to fine for failure to comply with an antitrust decision," said Neelie Kroes, the European competition commissioner. She added that the commission could have imposed double what it did, but decided $1.35 billion was "a reasonable response to a series of quite unreasonable actions."

EU Commissioner for Competition Neelie Kroes addresses the media at the EU Commission headquarters in Brussels, Oct. 3, 2007. The European Union fined Microsoft Corp. a record euro899 million (US$1.3 billion) on Wednesday for charging rivals too much for software information.
EU Commissioner for Competition Neelie Kroes addresses the media at the EU Commission headquarters in Brussels, Oct. 3, 2007. The European Union fined Microsoft Corp. a record euro899 million (US$1.3...   (Associated Press)
Microsoft Chairman Bill Gates answers questions with Stanford President John Hennessy (not pictured) at Memorial Auditorium at Stanford University in Stanford, Calif., Tuesday, Feb. 19, 2008. (AP Photo/Jeff Chiu)
Microsoft Chairman Bill Gates answers questions with Stanford President John Hennessy (not pictured) at Memorial Auditorium at Stanford University in Stanford, Calif., Tuesday, Feb. 19, 2008. (AP Photo/Jeff...   (Associated Press)
EU Commissioner for Competition Neelie Kroes addresses the media at the European Commission headquarters in Brussels, Wednesday, Feb. 27, 2008. The European Union fined Microsoft Corp. a record euro899 million (US$1.3 billion) on Wednesday for charging rivals too much for software information. (AP Photo/Yves Logghe)
EU Commissioner for Competition Neelie Kroes addresses the media at the European Commission headquarters in Brussels, Wednesday, Feb. 27, 2008. The European Union fined Microsoft Corp. a record euro899...   (Associated Press)
This set of flagpoles sits at one of the entrances to Microsoft Corporation in Redmond, Wash., Monday, Oct.19, 1998. The European Union is fining Microsoft Corp. $1.3 billion for charging rivals too much for software information. EU regulators say the company charged unreasonable prices to software developers who...
This set of flagpoles sits at one of the entrances to Microsoft Corporation in Redmond, Wash., Monday, Oct.19, 1998. The European Union is fining Microsoft Corp. $1.3 billion for charging rivals too much...   (Associated Press)
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