A whopping big fine was expected today. Bloomberg had reported yesterday that the fine was expected to be as high $2.2
billion, so maybe in a weird twist of fate, a fine of ONLY $1.3 billion is a bargain.
It was obvious that Microsoft's news last week, that it was publishing its specifications on its biggest products, was a last ditch effort to try and avoid penalties from the EC. The EC made it clear that Microsoft was not going to be let off the hook when over the past four years Microsoft repeatedly tried to avoid complying with part of the Commission's ruling that ordered the company to detail communications protocols used by Windows so that other software manufacturers could build systems that interoperate smoothly with Windows. Even still, these fines are said to be because Microsoft was not offering its protocol licenses at a reasonable rate. As a public company, Microsoft does owe it to its stockholders to be on the lookout for the bottom line. It seems reasonable for it to charge a REASONABLE fee for commercial software makers (open source or not) to build apps for the Windows environment. Even still, charging such a fee is not great business in the long run, which everyone (but Microsoft, it seems) can see. If Microsoft wants Windows to continue to own the operating server market, it's got to allow applications to be easily created for it.
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Is this the cost of doing business in the EU?
These fines have almost become a cost of doing business, look at Microsoft's fines over the last few years.
- Novell $ 536 million
- Sun Microsystems $1.6 billion
- AOL/Time Warner $750 million
- IBM $775 million
- Real Networks $1 billion
- State of California $ 1.1 billion
No sweat for them, the EU fine works out to about two weeks of free cash flow for Microsoft. It does raise issues about competing and marketing in the EU.
Paul Lopez
Why Bother?
As much as i dislike Microsoft's practices... seems to me these things are really stupid and behind the times. Could it be no one bought the stripped down version of Windows without the media player because its just plain stupid. Regardless of price, even if it was $5.00 cheaper, whats the point. I'd still buy the full version cause it has a media player that i don't have to go buy separately and i can use it immediately. I mean .. i can immediately listen to music and not have to worry about buying something else or downloading a media player. The companies complaining cause they make mp3 or media players will just have to innovate and make it better than the windows version. They already have and some of them are really good and a lot more popular (Itunes anyone). Same goes for browsers... make a better product and I'll buy it and use it, like i do with the Firefox browser which i happen to like better.. in the mean time i think these small companies should stop whining and these dumb governments should stop getting involved with things they know absolutely nothing about. Try doing some research before you look to fine... how about asking users what they want in an operating system these days. It's like TV... if you dont like it dont watch it... or in this case... dont use it. But or download an alternative and keep on truckin'. I think that if not for MS putting these things into the operating system.. there would BE no innovation from outside sources to create a better product.
Whats funny is that... almost all of the same software is in Apples operating system and its not open either.. but i dont see anyone crying foul about that.... hmmm YET!?
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