Microsoft Faces EU Fines, Korea Sanctions

July 05, 2006 | by Geoff Duncan

European antitrust regulators are getting closer to fining the company about $2.5 million a day, and Korea refuses to postpone antitrust penalties.

It's not shaping up to be a great week for Microsoft overseas, as long-simmering antitrust actions against the Redmond software giant threaten to come to a boil.

First, European Union antitrust regulators have unanimously found that Microsoft is not complying with the EU's 2004 antitrust settlement with the company. This is the first step before announcing penalties against the company: regulators first have to agree on the principles of the violation, then meet again to determine a penalty. Microsoft has repeatedly disputed the EU's antitrust process, claiming the EU continually "moves the goalposts" in its antitrust requirements and asserting the company's actions have not hindered consumer choice. Microsoft has even tried to sweeten the pot by offering source code licensing to key elements of Microsoft server software products.

European regulators, however, are apparently not impressed, and will re-convene next week to determine the penalty to be assessed against Microsoft. In December 2005, the European Commission voted to assess a €2 million per day (US $2.6 million) fine against Microsoft for not complying with antitrust requirements.

Meanwhile, in Korea, the Seoul High Court has denied a stay of sanctions imposed by the Korean Fair Trade Commission, which rule Microsoft must unbundle Windows Media Player and instant messaging services from its Windows operating system by August 24. Following the court's refusal to postpone sanctions, Microsoft tritely said it plans to comply with the KFTC's order, although the company also asserted it intends to vigorously appeal the decision, and had previously threatened it might have to pull Windows from the South Korean market entirely. Now, Microsoft apparently plans to withdraw current versions of Windows from the Korean market by August 24, and said it plans to release new versions while emphasizing its commitment to the Korean market.




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