EC imposes penalty payment of €280.5 million on Microsoft for continued non-compliance
On July 12, 2006 the European Commission (EC) imposed a fine of €280.5 million ($350.6 million) on Microsoft due to Microsoft’s failure to comply with measures outlined in the EC’s infringement decision of March 2004. This penalty marks the first time that the EC used its powers under Article 24 of Regulation 1/2003 to fine a company for a failure to comply with an Article 81 or 82 decision.
The EC decision of March 2004 fined Microsoft for breaching Article 82 of the EC Treaty, by abusing its dominant position in the personal computer operating systems and work group server operating systems market. Microsoft was ordered to provide competitors with sufficient information to enable them to develop programs compatible with the Windows operating system, as well as to offer a version of Windows that does not include Windows Media Player.
The EC deemed that Microsoft failed to provide clear information to enable interoperability of software systems, which has led to this latest fine.
Microsoft has stated that it will appeal the fine, alleging that the original decision was unclear. The company argues that it has since complied with all the EC’s demands.
Authored by
D. Sexton
202-589-1836
dsexton@dbmlawgroup.com
