EU regulators fined Microsoft 280.5 million euros (US$357.3 million) yesterday for defying a 2004 antitrust ruling, and warned the company to comply or face bigger fines from next month.

 

The tough new penalty is the first of its kind and comes on top of a record 497 million euro (US$633 million) fine the European Commission imposed in its landmark antitrust decision against Microsoft in March 2004.

 

"The EU Commission cannot allow such illegal conduct to continue indefinitely. No company is above the law. Each and every company, large or small, operating in the EU must abide by EU law," Competition Commissioner Neelie Kroes told reporters.

 

The Commission required Microsoft to provide technical information to rival server software makers after it found the company abused the dominance of its Windows operating system and squeezed out competitors.

 

"Microsoft did not even come close to providing adequate information," Kroes said.

 

The fine covers the period from December 16 to June 20 at 1.5 million euros (US$1.91 million) daily. It fell short of a possible daily maximum of 2 million euros (US$2.55 million). Microsoft faces a further fine of up to 3 million euros (US$3.81 million) a day if it still does not comply by July 31.

 

The move signals the Commission's determination to force the software giant to obey its order and a loss of patience after the company had two years to comply and used virtually every available legal and court procedure to spin out the process.

 

"It puts (Kroes) in a position of authority generally, which will make business across the board much more inclined to comply," said Chris Bright, a London competition lawyer, adding that energy companies could be the next focus.

 

The Commission's hardline approach contrasts with that of the United States, which in 2000 had similar findings against Microsoft but is still awaiting technical documents from the company as ordered by the US Justice Department in 2002.

 

By May this year the process was so troubled that Microsoft and the court started over again in a process that took the cue from what a US judge called "the European Commission's direction." Kroes noted this new US approach yesterday.

 

Microsoft said it has made massive efforts to comply with the Commission's 2004 ruling and now has 300 people working to complete its package by an agreed deadline of July 18.

 

It called the fine unjustified, but said that will not slow its effort to comply. Microsoft, which has appealed against every ruling against it so far by the Commission, said yesterday it will appeal against this decision too.

 

Kroes called the original order "crystal clear." It required interoperability information on reasonable and non-discriminatory terms.

 

(China Daily July 13, 2006)