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- EU slaps a fine of $731 million on Microsoft over Browser Ballot agreement
Posted by : Unknown
Thursday 7 March 2013
EU slaps a fine of $731 million on Microsoft over Browser Ballot agreement
European Union has fined the technology giant Microsoft $731 million for breaching the terms of it’s Browser Ballot agreement.
The fine slapped on Microsoft comes after the company failed to provide
Windows users with a choice of alternate browsers, as had been
specified in the agreement back in 2009.
The decision to impose fine on Microsoft
was termed as significant by Europe’s antitrust and competition chief
Joaquin Almunia, who laid emphasis on the importance of maintaining the
terms of a legal agreement and said,
In 2009, we closed our investigation
about a suspected abuse of dominant position by Microsoft due to the
tying of Internet Explorer to Windows by accepting commitments offered
by the company.
Legally binding commitments reached in
antitrust decisions play a very important role in our enforcement policy
because they allow for rapid solutions to competition problems. Of
course, such decisions require strict compliance. A failure to comply is
a very serious infringement that must be sanctioned accordingly.
The issue began back in 2009, when
Microsoft was accused of manipulating the battle for browser share by
Opera Software, which said that the Microsoft was violating the European
Competition law by tying Internet Explorer to Windows. Later, Microsoft
agreed to display a “browser ballot” during the installation process of
Windows 7 , allowing users to chose from different
browsers, including Firefox, Chrome, Opera and Safari.
However, the company failed to keep up
with it’s promise and did not display the “browser ballot” to
approximately 15 million users of Windows 7 Service Pack 1 (SP1), who
got the operating system between May 2011 to July 2012.
Though Microsoft did acknowledge the
error last year in July and termed it as a ‘technical glitch’, blaming
it’s engineering team for the fiasco, but that did not sop
the European authorities from slapping the fine.
Joaquin Almunia said that the huge fine
imposed on Microsoft was finalized after taking into account the
duration till Microsoft violated the terms of agreement and also, the
need to warn other companies against breaking the terms of a legal
agreement. He later added that the fine could have been much higher, but
was kept comparatively low as Microsoft co-operated with
the investigation.