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European Union fines Microsoft $732 mn for restricting web browser options

New Delhi, Thu, 07 Mar 2013 NI Wire

European Commission, executive body of European Union on Wednesday imposed a 561-million-euro ($732.6-million) fine on Microsoft Corp. for failing to provide consumers a choice of web browsers on a version of Windows 7.

European Commission said in a press release, "Microsoft breached a commitment reached with European institutions to create a screen on its operating system offering users the option of several other web browsers apart from Microsoft's Internet Explorer".

That commitment was binding until 2014.

"But they found that Microsoft did not fulfill that obligation on its Windows 7 Service Pack 1 between May 2011 and July 2012 and therefore was remiss in offering 15 million users a clear choice of browser".

In 2009 the commission closed an investigation into potential competition problems arising from the tying of Internet Explorer to the Windows operating system, which dominates the PC market, after accepting Microsoft's legally binding commitment.

Joaquin Almunia Vice President in charge of competition policy of European Commision said, "Anti-trust decisions such as these require strict compliance. A failure to comply is a very serious infringement that must be sanctioned accordingly".

The Redmond, Washington-based company accepted full responsibility for the breach, attributing the problem to a technical error that has since been corrected.

Microsoft faced a possible fine of up to 10 percent of its total annual revenue, which would have amounted to more than 4 billion euros ($5.2 billion) based on figures from the previous financial year.

The EU fined Microsoft more than 1.7 billion euros in all in three separate enforcement actions between 2004 and 2008.

(with inputs from IANS)


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