Bonum Certa Men Certa

Microsoft Fine is Fine, But What Else Will be Done? (Updated: FSFE Says EU Fine Not Enough as Punishment for Microsoft's Abuses)

Summary: A $730,000,000 fine for Microsoft's Web browser abuses and refusal to obey the law (or comply with penalties)

AS EXPECTED, a fine for Microsoft to pay for its abuses was to be announced today, as even the state media (in the United States) stated today:



On Wednesday, the European Union is expected to impose a large fine on Microsoft for failing to give users of the company’s Windows software a choice of Internet browsers. It would be the first time that European regulators had punished a company for neglecting to comply with the terms of an antitrust settlement, and it could signal a tougher approach to enforcing deals in other antitrust cases, including one involving Google.

Microsoft and officials at the European Commission reached an antitrust settlement in 2009 that called on the company to give Windows users in Europe a choice of Web browsers instead of pushing them to Microsoft’s Internet Explorer. But Microsoft failed to offer users such a choice for more than a year — apparently without anyone at the company or the commission noticing.


The fine is now known, and it's less than a billion dollars, far less than Microsoft has gained owing to this illegally-obtained monopoly:

Europe hits Microsoft with $730M fine over browser choice ‘error’



Microsoft was naughty and got caught, and now it has to pay handsomely. Here’s the rundown on what happened, why it mattered, and why it may not happen again in quite the same way.


Be prepared for Microsoft apologists and PR folks to vilify the European authorities over it. As a little bit of background, consider reading:

  1. Huge Fines for Microsoft Browser Offences
  2. Cablegate: European Commission Worried About Microsoft's Browser Ballot Screen Being Inappropriate
  3. Microsoft's Browser Ballot is Broken Again and Internet Explorer 8 is Critically Flawed
  4. Microsoft's Ballot Screen is a Farce, Decoy
  5. A Ballot Screen is Not Justice, Internet Explorer Still Compromises Users' PCs
  6. Microsoft Not Only Broke the Law in Europe, So Browser Ballot Should Become International
  7. Browser Ballot Critique
  8. Microsoft's Fake “Choice” Campaign is Back
  9. Microsoft Claimed to be Cheating in Web Browsers Ballot
  10. Microsoft Loses Impact in the Web Despite Unfair Ballot Placements
  11. Given Choice, Customers Reject Microsoft
  12. Microsoft is Still Cheating in Browser Ballot -- Claim
  13. Microsoft Does Not Obey the Law


As justice is too slow, the fine is too little and it's too late. Just watch this decades-old antitrust case still going on, as Groklaw noted the other day:

A date for oral argument in the WordPerfect antitrust battle, Novell v Microsoft, has been set. It's May 6, at 9 AM in Courtroom II at the Byron White US Courthouse in Denver, Colorado.


Yes, long after WordPerfect had been made virtually dead judges failed to rule indefinitely and no justice was ever restored. Microsoft has made many billions using the office suite monopoly it illegally obtained. And Novell has been robbed naked by Microsoft since then, rendering one side in this legal battle a lot less potent.

The moral of the story is, if you are a big corporation like Microsoft or Goldman Sachs, the cost of committing crimes is just a minor cost of doing business and it pays off in the long run. Crime is like an investment and nobody ever goes to jail if you are "too big (or groomed) to fail". The following caricature (no attribution known) expresses this well.

Monopoly



Update: Linking to reports like this one about the fine, the FSFE's president says:

Microsoft just can’t avoid getting into trouble with competition watchdogs.

Today, the European Commission slapped the company with a fine of EUR 561 million (ca. USD 731 million) for breaching a 2009 settlement over the bundling of Internet Explorer with Windows. Under this agreement, Microsoft promised to display a “browser choice” screen on Windows installs in Europe, inviting users to choose other browsers besides the company’s own program.

[...]

Faced with a blatant breach of the agreed settlement, the Commission had no choice but to act decisively. The alternative of doing nothing, or imposing a minimal token fine, would have made European competition regulators look like paper tigers.

As Microsoft has now, again, learned to its cost, the EC demands to be taken seriously on such things.

Yet while large in absolute terms, the fine amounts to 1% of the company’s revenue in 2012. There is a danger that companies of this size see regulatory interference as a mere cost of doing business, rather than as an impulse to mend their ways. To achieve this, more forceful measures may be necessary, such as excluding offenders from public procurement for a limited amount of time.


A punishment "such as excluding offenders from public procurement for a limited amount of time" may be an interesting option, but still, it is too soft on people who knowingly abuse the law. Why not suggest jail terms? Is it too radical a suggestion to put white-collar criminals in prison in the age of rampant financial abuses and illicit wars? Have we lost a sense of moral by putting only poor people in jail (class incarceration)?

Recent Techrights' Posts

Microsoft: Our "Goodwill" Gained Over 51 Billion Dollars in the Past Nine Months Alone, Now "Worth" as Much as All Our Physical Assets (Property and Equipment)
The makeup of a Ponzi scheme where the balance sheet has immaterial nonsense
FSFE (Ja, Das Gulag Deutschland) Has Lost Its Tongue
Articles/month
Ian Jackson & Debian reject mediation
Reprinted with permission from disguised.work
How to get selected for Outreachy internships
Reprinted with permission from disguised.work
 
Lucas Kanashiro & Debian/Canonical/Ubuntu female GSoC intern relationship
Reprinted with permission from disguised.work
Pranav Jain & Debian, DebConf, unfair rent boy rumors
Reprinted with permission from disguised.work
Links 27/04/2024: Kaiser Gave Patients' Data to Microsoft, "Microsoft Lost ‘Dream Job’ Status"
Links for the day
Gemini Links 27/04/2024: Sunrise Photos and Slow Productivity
Links for the day
Almost 2,700 New Posts Since Upgrading to Static Site 7 Months Ago, Still Getting More Productive Over Time
We've come a long way since last autumn
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 26, 2024
IRC logs for Friday, April 26, 2024
Overpaid lawyer & Debian miss WIPO deadline
Reprinted with permission from disguised.work
Brian Gupta & Debian: WIPO claim botched, suspended
Reprinted with permission from disguised.work
Microsoft's XBox is Dying (For Second Year in a Row Over 30% Drop in Hardware Sales)
they boast about fake numbers or very deliberately misleading numbers that represent two companies, not one
[Meme] Granting a Million Monopolies in Europe (to Non-European Companies) at Europe's Expense
Financialization of the EPO
Salary Adjustment Procedure at the EPO Challenged
the EPO must properly compensate staff in order to attract and retain suitably skilled examiners
Links 26/04/2024: Surveillance Abundant, Restoring Net Neutrality Rules (US)
Links for the day
Gemini Links 26/04/2024: uConsole and EXWM and stdu 1.0.0
Links for the day
Red Hat Corporate Communications is "Red" Now
Also notice they offer just two options: MICROSOFT or... MICROSOFT!
Links 26/04/2024: XBox Sales Have Collapsed, Facebook's Shares Collapse Too
Links for the day
Albanian women, Brazilian women & Debian Outreachy racism under Chris Lamb
Reprinted with permission from disguised.work
Microsoft-Funded 'News' Site: XBox Hardware Revenue Declined by 31%
Ignore the ludicrous media spin
Mark Shuttleworth, Elio Qoshi & Debian/Ubuntu underage girls
Reprinted with permission from disguised.work
Karen Sandler, Outreachy & Debian Money in Albania
Reprinted with permission from disguised.work
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 25, 2024
IRC logs for Thursday, April 25, 2024
Links 26/04/2024: Facebook Collapses, Kangaroo Courts for Patents, BlizzCon Canceled Under Microsoft
Links for the day
Gemini Links 26/04/2024: Music, Philosophy, and Socialising
Links for the day
Microsoft Claims "Goodwill" Is an Asset Valued at $119,163,000,000, Cash Decreased From $34,704,000,000 to $19,634,000,000 and Total Liabilities Grew to $231,123,000,000
Earnings Release FY24 Q3
More Microsoft Cuts: Events Canceled, Real Sales Down Sharply
So they will call (or rebrand) everything "AI" or "Azure" or "cloud" while adding revenues from Blizzard to pretend something is growing
CISA Has a Microsoft Conflict of Interest Problem (CISA Cannot Achieve Its Goals, It Protects the Worst Culprit)
people from Microsoft "speaking for" "Open Source" and for "security"
Links 25/04/2024: South Korean Military to Ban iPhone, Armenian Remembrance Day
Links for the day
Gemini Links 25/04/2024: SFTP, VoIP, Streaming, Full-Content Web Feeds, and Gemini Thoughts
Links for the day
Audiocasts/Shows: FLOSS Weekly and mintCast
the latest pair of episodes
[Meme] Arvind Krishna's Business Machines
He is harming Red Hat in a number of ways (he doesn't understand it) and Fedora users are running out of patience (many volunteers quit years ago)
[Video] Debian's Newfound Love of Censorship Has Become a Threat to the Entire Internet
SPI/Debian might end up with rotten tomatoes in the face
Joerg (Ganneff) Jaspert, Dalbergschule Fulda & Debian Death threats
Reprinted with permission from disguised.work
Amber Heard, Junior Female Developers & Debian Embezzlement
Reprinted with permission from disguised.work
[Video] Time to Acknowledge Debian Has a Real Problem and This Problem Needs to be Solved
it would make sense to try to resolve conflicts and issues, not exacerbate these
Daniel Pocock elected on ANZAC Day and anniversary of Easter Rising (FSFE Fellowship)
Reprinted with permission from Daniel Pocock
[Video] IBM's Poor Results Reinforce the Idea of Mass Layoffs on the Way (Just Like at Microsoft)
it seems likely Red Hat layoffs are in the making
Ulrike Uhlig & Debian, the $200,000 woman who quit
Reprinted with permission from disguised.work
IRC Proceedings: Wednesday, April 24, 2024
IRC logs for Wednesday, April 24, 2024
Over at Tux Machines...
GNU/Linux news for the past day