EC threatens Microsoft with €2m-per-day fine

The European Union has threatened to fine Microsoft up to €2 million a day for failing to obey its 2004 antitrust ruling, saying…

The European Union has threatened to fine Microsoft up to €2 million a day for failing to obey its 2004 antitrust ruling, saying the software giant was proving intransigent about sharing data with competitors.

Microsoft responded that the EU Commission was trying to undermine its Windows operating system with ever-more-drastic demands for technological transparency, and that it would contest the measure under EU law.

The Commission took new legal steps against Microsoft yesterday aimed at forcing the software giant to provide better documentation so its programs can be used with competitors' products.

Microsoft has until January 25th to answer the complaint.

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"I have given Microsoft every opportunity to comply with its obligations. However, I have been left with no alternative other than to proceed via the formal route to ensure Microsoft's compliance," EU Antitrust Commissioner Neelie Kroes said.

Microsoft said, however, the Commission's latest demands would also open the door to the cloning of the company's core product, the ubiquitous Windows operating system.

The Commission, and a trustee monitoring the case, had also failed to take full account of proposals submitted by the company last week, it added. Details of the Microsoft proposal were immediately available.

The Commission said it was also investigating the royalties Microsoft would charge for using its software information, and said another legal challenge might be issued if it was unhappy with the financial demands.

AP