The European Union just bought every one of their citizens a cup of coffee. Or at least, they’re giving them the equivalent. Their most recent fine against Micrsoft - a whopping $1.35 billion, will go directly into the EU’s budget. It works out to about $2.75 for every EU citizen.
Some notable publications are blinking, at, among other things, the size of the fine (a record), the possible lack of legal justification and the potential costs of doing business in Europe. The NYTimes said “The commission’s willingness to enforce vigorously its interpretation of what constitutes unfair competition potentially raises the costs of running a successful business in Europe for many American companies. It might pose problems for companies like Apple, Intel and Qualcomm, whose market dominance in online music downloads, computer chips and mobile phone technology is also being scrutinized by the European Commission.” The UK’s Guardian went further, saying “But some legal experts questioned the EU’s move. Denis Waelbroeck, competition partner at the lawyers Ashurst in Brussels, said: “While such a fine will no doubt do wonders for the commission’s image as a tough regulator, some might consider it unfair, not least since the commission refused to tell Microsoft what would be a ‘reasonable’ amount to charge for patent licences despite being asked several times.”"
This isn’t a crushing blow to Microsoft by any means. It’s equal to about two weeks of operating profit. And they have a long history of paying fines for antitrust abuses - $750 million to AOL/Time-Warner in 2003, $1.1 billion to California in 2003, $536 million to Novell in 2004, $1.6 billion to Sun in 2004, $775 million to IBM in 2005, $776 million to Real Networks in 2005. Etc.
But EU fines against Microsoft over the years now total €1.68 billion. And they are far from done - last month the EU opened two new cases against Microsoft, on behalf of a group of European software companies. This is despite the fact that Microsoft is routinely raked over the coals by U.S. regulators for the same issues the Europeans bring up.
The last time the EU visited the Microsoft ATM machine, a few congresspeople sent them a letter telling them to back off, that it was their job to police U.S. companies against antitrust abuses. That letter pretty much went nowhere.
EU’s chief Microsoft-taxer, errr, antitrust chief, Neelie Kroes, seems determined to make a name for herself by filling the EUs coffers. But perhaps it’s time for Europe to stop looking for the Microsoft handouts, and start promoting actual capitalism within their borders. Google, Apple and Mozilla, among others (including Germany’s SAP), seem perfectly able to compete against Microsoft without crying for help every time users decline to use their products.
Those who can, do. Those who can’t apparently live in Brussels and engage in a legalized shakedown of Microsoft every couple of years.
Watch out, Google. You’re next.





sorry, did i agree somewhere to deal with whatever nonsense you throw this way? Be interesting, or be gone.
No, no agreement to do so - but not “dealing” with the facts I put just paints you in a terrible light, I guess fact and logic isn’t interesting so maybe I’ll try some sensational nationalism to counter yours!
The EU is the natural ruler of the world, anybody who believes or act differently should be liberated and made to follow our “socialist” economic policy, we should regulate for everybody and should any regulator act against our sovereign companies - we’ll nuke them!
Now for the flag waving and anthem:
Europe is united now
United it may remain;
Our unity in diversity
May contribute to world peace.
Nice job, Michael! The only complaint is that every time you mention EU’s bureaucrats you should not forget to add “unelected” before it. Like in unelected EU bureaucrats.
ok everyone. I’ve moved on to Google’s exploitation of the homeless as a marketing stunt post.
http://www.techcrunch.com/2008.....-homeless/
As a European reading TC regularly, I have to admit that I am disgusted by the biased manner in which this article depicts Europe. It seems like the average American has absolutely no idea how any other country works and even less so how the European Union works.
Yes, the UE and most European countries have very clear and stringent rules on commerce; yes, these do sometime seem to cripple the “economic freedom” that Hardcore capitalism (like in the USA or many Asian Tigers for that matter) allows for, but at least, there are limits to what a corporation can do and, most importantly, the PEOPLE (like in “We, the People,….”, remember) are protected against soulless and greedy corporations.
And by the way, please, look up the word “socialist” in a dictionary. It is not a synonym of “communism”. Don’t get brain-washed by your media.
Please buy an Atlas and an Encyclopedia and educate yourself.
“And they have a long history of paying fines for antitrust abuses”
Um, maybe if Microsoft wants to stop paying fines for antitrust abuses then they should STOP INDULGING IN ANTITRUST BEHAVIOUR.
@Little Bobby Jones
Dude…Chill! Everyone is just having a bit of go. You are one tight assed brit and a humorless one at that. All of your “arguments” are simply banal…do you have any idea how predictable you are? Please try to inject a bit of humor into your point of view. No one really expects a brit to come up anything other than re-tread british wit, you know, the fill in the blank type stuff. Just try…that is all we ask….entertain us a little….say something funny.
This article is one of the worst ever on Techcrunch. Very biased anti-European. I guess now we all finally know the kind of people behind the website. What about just going into the facts instead of crying about Microsoft?
Microsoft was convicted in the US of monopoly practices and were it not for Bush coming in, would probably have been severely punished in the US. The EU has a valid concern that Microsoft exercises excessive power, and has every right to use its legal system to make it pay a price for ignoring the EU’s court judgements. The EU consists of a loose federation of flourishing capitalist societies like the US. One difference is that the people of the EU are substantially less credulous than Americans about the effects of unrestrained corporate power.
Clint Murdock, where is the humour? Most people seemingly believe all of this, they are having a serious argument. As for banal & predictable arguments, the truth usually is predictable.
As for funny, how many people have said funny things in these comments - they are all serious comments about Microsoft & the EU.
re: #16 from Jonathan Street, the fine is actually much less than 1% of a year’s budget. the budget figure you quoted is in euros, whereas the article’s figure for the fine is in dollars.
its simple for big daddy.
“as you sow so shall you reap”
MS ruined Netscape ( intentionally ), Novell and few others . its time to payback.
Microsoft got fined for bundling there own software with more of there software. if the EU doesnt like it dont use there products.
I think a company should be able to compete with whomever is in the market by having better products/ services
if you cant and you have better products its you not them maybe something is wrong in your company not theres because they got to the top somehow
look at what other companies have done throughout history to get ahead giving there products away and stuff come out with something that is unique so you can get a damn audience for your products
So why cant you by doing the same thing. microsoft wasn’t the first and they wont be the last.
Did microsoft start off with a hundred million or a billion dollars no was it easy for them no so why should it be for the next person, everybody and every company should have to go through the same crap.
Example
They bundle internet explorer with windows if they didnt how would you get on the internet to download another browser ?
so windows should come with just windows and strip out everything else, no windows media player not IE no calendar no clock, no mail program
if they dropped out all of that stuff it will just shift more money to other companies by people having to buy extra software like a media player since most cost for the pro version, excluding itunes since you cant use any players besides an ipod easy an idiot proof .
how about tech crunch have a post about how much it would cost buying windows and then how much it would cost for windows + similar programs to what microsoft includes in the os and see how the prices compare. to see which it better for the consumer.
The EU should start by putting their own house in order. They haven’t had their accounts signed by an auditor for 12 years in a row.
http://www.youtube.com/watch?v=El4lQKh1zrw
Their track record isn’t exactly glowing either.. in 1999 the entire european government led by Jacques Santer resigned in a corruption scandle.
Go figure.
Europe should be ashamed.
The EU should strive to create an environment that fosters tech innovation rather than regulate the latest succesful US company. What has the brilliant antitrust motion against MS bought you - a media player less version of Windows. Oh boy what a wonderful Euro innovation that was. in the meantime the American company Apple showed us all that no regulation was necessary.
The EU is the new Soviet Union. Next they’re going to fine Microsoft for being too rich. You must share some of that, comrade Gates!
Dyde, surely they’d go after oil companies like Royal Dutch Shell & British Petroleum (BP), both European and a hell of a lot richer than Microsoft?
If it was about Americans & Money they’d go after EXXON, but only US democrats have suggested that!
Please excuse the yank wankers who are going through some tough sledding right now. Just the appearance of an attack against a U.S. company, is considered by them 2B a shot across the bow of the U.S.A. herself.
They are approximately 22% of the citizenry who would rather cut off their noses to spite their faces, “or in other words,” as Dubya is fond of condescendingly saying, they are the jingoistic, mendacious, chickenhawk, George Bu$h sychophants.
They should be jumping for joy that in der “Homeland,” Diebold’s casuistry has garnered the contract for not only the ATMs, but also for the closed scource codes to the Diebold Voting Machines, (a subsidiary of the G.O.P?) That’s right, the G.O.P. has done a “free mkt.” number on our election systems.
Between the plethora of election irregularities, hostile Republican’t Attorneys General, voter caging, gerrymandering, & black-box voting, the
Republicant’s have stolen yet another election. If not, Dubya wouldn’t be the pResident.
G.O.P. = Greed Over Principle
O.I.L. = Operation Iraqi Liberation
One of the main reasons wealth makes people unhappy is that it gives them too much control over what they experience. They try to translate their own fantasies into reality instead of tasting what reality has to offer. -
- Philip Slater
Peace out.
haha, this must be one of the funiest titles ever. I love when somebody takes on Miscrosoft and this is my favorite.
Michael it seems you very much enjoyed this post. I guess I missed the party.
Bashing EU with dumb one liners for taking a stand against Microsoft monopoly practices is half-brained non-analysis at best.
The article should have a disclaimer of coming with a chip on the shoulder against one of the most commercially exciting and dynamic areas of the world right now.
The EU government has plenty of faults, ditto the US, but I really thought you were more intelligent than to write this kind of prejudiced half-baked article, Mr Arrington.
How incredibly unprofessional.
Yes, the numbers are big. They’re meant to be. You think Microsoft would notice a $100 fine?
There’s a simple perspective issue here. In Europe, the government is there for the people. In the USA, it’s there for the corporations.
Maybe just a little ashamed that the DoJ was too weak to push cases that the EU can ?
It’s quite simple. If you want to participate in the local market, you obey the local laws. Or would you have me drive on *my* side of the road in the US, simply because I’m British ?
Stupid anti-EU rant. Yes, the fine is about money, but it’s definitely also about opening up MS.
Also, in the past and in the future, EU gave fines to European companies. Currently it’s rumored that there will be huge fines (multi-billion EUR) in the European energy sector (e.on & Co) if they don’t open up.
Michael I know this doesn’t hurt you but I’m finished reading this blog.
Sebastian
Interesting but of logic here. Just because you’ve been fined for speeding in the US, doesn’t mean you can’t get any speeding tickets elsewhere. MS broke EU-laws, so it’s being fined in the EU by the EU.
And the second fine is because MS blatantly refused to comply with EU-law *after* being convicted.
Moreover, the whole anti-trust thing is a US invention. We’re doing exactly what you want: following the US example of regulating capitalism….
Good morning.
I see the debate turned sour before Michael even tried to address the fact of European companies getting fined just as heavily. Oh well..
How wonderfully ignorant and xenophobic.
Tech Crunch is a monopoly. Close it the fcuk down.
Actually - the article is way off the mark.
Tech co’s (including telcos) are heavily regulated in order to maintain competition. When they are not regulated you get a situation similar to a nationalized industry - i.e. no regulation leads to socialist outcome. Go figure…
Luckily the EU is strong and and smart enough to see this through to the end. Perhaps MS lobbyists aimed too low if you follow?
How sad,
mixing ignorance with false patriotism,
following your president’s lead?
Freedom of speech means you are entitled
to have an opinion, but it is not mandatory
to have one. Without knowledge, you’d
be well advised to keep your mouth shut.
Hi there,
surprising to me how little the actual issue of the MS offences in the EU are adressed here! And - even more surprisingly - Michael mentioned the antitrust fines MS had to pay in the US: And they are a lot higher!
I hate to tell you dear fellow techies: Nationalistic discussions like these here are in no way acceptable.
@ Michael: As a Journalist I would have ecpected a different and much much more objective perspective from you!
By far the worst article I have read on techcrunch!
Kai
When did TechCrunch become a right-wing, anti-European political blog? This is biased and amateurish journalism.
Worst. Article. Ever. You just lost a reader.
This is truely one of the most biased, un-researched posts I’ve ever read here. And to the rest of the world it just re-affirms the point once again that Americans think their s**t smells better than the rest of the world’s. For the sake of us Americans living abroad, give it a rest already will you? Better yet, take some holiday days and go and explore the world out there. Oh wait, yeah, those 5 days Americans get in holiday every year probably isn’t enough ….
Michael, you’re stooping to INCREDIBLE lows in the comments too. What’s up with that; some European girl break your heart? At least pull a Scoble and admit you were wrong as hell posting this.
What about the US gambling law shakedown?
That all but bankrupted several online gaming and payment companies with no comeback and Feds arresting CEOs!
regarding the commenters that want a little more analysis on whether or not the fine is justified - there were a number of excellent commentaries published yesterday on that very subject. I’ve added links and quotes to the post which will, undoubtedly, do little to satisfy you:
Some notable publications are blinking, at, among other things, the size of the fine (a record), the possible lack of legal justification and the potential costs of doing business in Europe. The NYTimes said “The commission’s willingness to enforce vigorously its interpretation of what constitutes unfair competition potentially raises the costs of running a successful business in Europe for many American companies. It might pose problems for companies like Apple, Intel and Qualcomm, whose market dominance in online music downloads, computer chips and mobile phone technology is also being scrutinized by the European Commission.” The UK’s Guardian went further, saying “But some legal experts questioned the EU’s move. Denis Waelbroeck, competition partner at the lawyers Ashurst in Brussels, said: “While such a fine will no doubt do wonders for the commission’s image as a tough regulator, some might consider it unfair, not least since the commission refused to tell Microsoft what would be a ‘reasonable’ amount to charge for patent licences despite being asked several times.””
Even though I also think that the opinions in this post are wrong and missing the big picture, I don’t agree with the comments that use journalism as an argument.
Michael aren’t a journalist, he’s a blogger, and bloggers express their personal opinions more freely. If you want unbiased news; go somewhere else.
Where are you guys buying coffee??
(COFFEE is the american equivalent of an expresso. You can then get capuccinos, lattes, machiattos and so on. But COFFEE is an “expresso”)
Lisboa - 55 cents/ coffee (80 american cents)
Barcelona - 90 cents/coffee (1.35$)
Roma - 70 cents/coffee (1.05$)
Zagreb - 80 cents/coffee (1.20$)
London - £1.25/coffee (2.70$)
Uhm, yeah, If you don’t know anything about Europe, just keep it shut….
I don´t get the ATM Machine hint! - can´t you only take your own money from the ATM Machine ?
I hate to say I told you so to those who thought Microsoft’s money wouldn’t be filling the Brussels eurotrough, but I told you so.
If anything Arrington has a rather naive view of how the EU spends his money. The coffee comparison is pointless because none of us poor peasantry are ever going to see that money. Instead, try looking up the cost of a top-line bottle of champagne and a plate of Beluga caviar (those diplomatic wheels won’t oil themselves, n’est ce pas), and divide that into the number of people employed by the EU bureaucracy. That’ll give you a better idea of what $1.35bn buys.
I hope our American cousins don’t get the false impression from the commenters here that all of us Europeans are socialists who still live in the 1970s and think that the Americans should be strangled with red tape every time they try to sell us something. Most of us understand that no matter how megalomanical Microsoft is, it is at least accountable and runs the risk of oblivion if it screws up too bad, unlike the EU.
At first I thought the comments seemed kinda racist (or better overly patriotic).. But then I thought about it..
If an European equivalent of TC would have written something about an European company being fined by the USA the comments would have looked the same:)
Dogs barking at the moon
When you lack knowledge, even the simplest things seem suspicious, twisted or alien.
The EU is not fighting Microsoft, it is fighting the lack of competition in European markets - the most basic ideal of modern economies.
If Arrignton demonstrates such an blatant lack of knowledge here, I wonder how much worth is the rest of his advice to investors - very disappointing.
BTW everyone, for what it’s worth there are plenty of Europeans who think the EU Commission has gone way over-board:
http://blogs.guardian.co.uk/te.....osoft.html
Europe tries to regulate Microsoft’s abusive position, that’s all. I don’t know if it’s the same in the US, but in France when you buy a computer, it has Windows installed on it. If you wanna use Linux, you have to ask to be refunded, and it’s a very tough fight to get your money back.
I personnaly own a computer with Linux.
With that computer, i paid Windows XP, Works, Nero and other stuff that i will never use, but i didn’t asked to be refunded because it takes too much time and you know… time is money.
How many ppl are in the same case ? How many europeans bought MS products they won’t use, and paid coffees to american ppl ?
Also, maybe you already know that MS forced brands to deliver all their computers with Windows, otherwise they wouldn’t be allowed to distribute any Windows copy ?
Is that what you call “free market” ?
P.S. : fortunately, Techcrunch is not the voice of america, or we’d think american ppl woud just be brainless zombies.
I find the slant on this article really ironic. Microsoft was convicted for these same reasons in the US and they practically got away with it by giving away free copies of their software to schools, which costs almost nothing to them and serves to indoctrinate future generations. Now, when another country/region does what the US should have done in the first place everyone in the US starts crying foul because a US company is being punished by a foreign entity.
Microsoft has probably been the sleaziest software company in the history of mankind (IBM in their golden era came close to them). They have used their Windows/Office monopoly to crush tens (hundreds?) of competing companies and engaged in countless unfair/illegal/immoral practices (see OOXML ISO standardization process, for example). So, next time they want to add another “free” product to Windows, go ahead and let them do it, but make sure that *every* competing product is shipped with Windows and automatically installed.
And no, I’m not from any European country, I live in Argentina.
There was a time when the US government had some danglies and went after market wrecking monopolists in an aggressive manner.
Because the USA isn’t going after them it is left to others to do it for them. Microsoft are free to withdraw from the EU if they wish. To suggest that the EU isn’t able to regulate companies operating inside the EU is obviously wrong. Would the US government tolerate bad behaviour from a European company? No…didn’t think so.
I’m more worried about the stupidity of some acephalous people that like to speculate over the price of wheat.
The USA is the defender of the free world. The rest of the world is either with us or against us; the ones who are against us hate our freedom. The EU commie system doesn’t work, that’s why your unemployment rate is 50% and BTW the socialist health care doesn’t work; why don’t you try out the best made-in-USA invention of all: real democracy. USA! USA! USA!
@190: Agentina speaks Spanish right, which last I heard is a European language, so that makes you an EU outpost.
P.S.
Re: MS/ATM picture, you could have used one of many real-life ones such as the following; unfortunately they often feature the Blue Screen of Death:
http://www.oss.cayey.upr.edu/b.....tmBSOD.jpg
@190: Agentina speaks Spanish right, which last I heard is a European language, so that makes you an EU outpost.
LOL!
uhm, last time I looked England is in Europe… and you do speak English, right? So the USA is…uhm… an “EU outpost” ?
Michael, you should put links on the various previous antitrust rulings against MS that are mentioned in the article - would make for even better reading.
fr-FR:
Monsieur A.: peut-être que vous croyez que chaque visiteur européen faché cliquera sur vos advertisements. Non! Nous cliquerons jamais!
de-DE:
Herr A.: vielleicht glauben Sie, jede verärgert europäische besucher wird auf Ihren Ads klicken. Nein! Wir klicken nie!
sv-SE:
Herr A.: kanse att du tror att varje ilsken europäiska besöker kommer att klicka på dina relkamer. Nej! Det ska vi aldrig!
en-US:
Dang it, we ain’t gon’ click on yo’ ads no mo’! Jesus is my health insurance!
@ BOB W: get a life!
I bet you’re a republican!
it’s people like you with your global world wide IGNORANCE and superior feelings that fuel hate around the world.
why do you need to say such things.
socialist health care doesn’t work ? most Europeans can enter a hospital and get cured. Most of European kids can go to college without their parents needing to get special loans.
Go look into your own backyard before saying stuff like that.
But then again I don’t expect you understanding this.
@ article
“it’s time for Europe to stop looking for the Microsoft handouts, and start promoting actual capitalism within their borders”
yeah that’s right we’re full grown commies! come on now be a bit more professional about this!
regards,
yeah in case someone wonders… I’m called michael too btw