Microsoft's Troubles with the EU Commission

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Microsoft felt that the fine was unfair and the magnitude of the fine was inappropriate. Commenting on the EU decision, Brad Smith (Smith), General Counsel, Microsoft, said, "The fine announced today is larger than the fines the Commission has imposed for even the most severe competition law infringements, such as price-fixing cartels. When you consider Microsoft's massive efforts to comply with this ruling, and the fact that more than a dozen companies are already using similar documentation provided in the US to ship actual products, we do not believe this fine is justified."3

According to Microsoft, the issue had to do with clarity rather than compliance and said that it was unaware of what details were required by the EU.

Smith said, "In our view, this issue has never been about compliance, it's about clarity."4 He added, "We do not believe that any fine, let alone a fine of this magnitude, is appropriate, given the lack of clarity in the Commission's original decision and our good faith efforts over the past two years."5 Microsoft said that it would appeal the decision in the European courts.

Microsoft said that it had made efforts to deliver documentation as needed by the EU. Brad Smith, General Counsel, Microsoft said, "Microsoft is dedicating massive resources to meet the aggressive schedule and high-quality standards set by the trustee6 and the Commission in this process."7 He also added that around 300 people were working full-time on the project.

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[3] "Microsoft hit with $357M E.U. fine," www.cio.com, July 12, 2006.

[4] Gregg Keizer, "Microsoft pledges to appeal $357 million EU fine," www.informationweek.com, July 13, 2006.

[5] Gregg Keizer, "Microsoft pledges to appeal $357 million EU fine," www.informationweek.com, July 13, 2006.

[6] Neil Barrett, a UK computer scientist and IT security expert, was appointed as trustee by the European Commission in October 2005, to provide impartial advice the Commission on Microsoft's compliance to its 2004 ruling.

[7] "Fine Announced by European Commission," www.persupport.nl, July 12, 2006.

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