Microsoft Is The EU's ATM Machine - And Google Is Next 14 comments
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The European Union just bought every one of their citizens a cup of
coffee. Or at least, they’re giving them the equivalent. Their most recent fine against Micrsoft - a whopping $1.35 billion, will go directly into the EU’s budget. It works out to about $2.75 for every EU citizen.
This isn’t a crushing blow to Microsoft by any means. It’s equal to about two weeks of operating profit. And they have a long history of paying fines for antitrust abuses - $750 million to AOL/Time-Warner in 2003, $1.1 billion to California in 2003, $536 million to Novell in 2004, $1.6 billion to Sun in 2004, $775 million to IBM in 2005, $776 million to Real Networks in 2005. Etc.
But EU fines against Microsoft over the years now total €1.68 billion. And they are far from done - last month the EU opened two new cases against Microsoft, on behalf of a group of European software companies. This is despite the fact that Microsoft is routinely raked over the coals by U.S. regulators for the same issues the Europeans bring up.
The last time the EU visited the Microsoft ATM machine, a few congresspeople sent them a letter telling them to back off, that it was their job to police U.S. companies against antitrust abuses. That letter pretty much went nowhere.
EU’s chief Microsoft-taxer, errr, antitrust chief, Neelie Kroes, seems determined to make a name for herself by filling the EUs coffers. But perhaps it’s time for Europe to stop looking for the Microsoft handouts, and start promoting actual capitalism within their borders. Google, Apple and Mozilla, among others (including Germany’s SAP), seem perfectly able to compete against Microsoft without crying for help every time users decline to use their products.
Those who can, do. Those who can’t apparently live in Brussels and engage in a legalized shakedown of Microsoft every couple of years.
Watch out, Google. You’re next.
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This article has 14 comments:
Perhaps all countries should jump on board and start fining any foreign company that dare due business. We'll just call it a tax and the new age of protectionism.
Because many Americans believe all regulation is bad, even if LACK of regulation leads to disasters like the mortgage crisis; the Enron meltdown; the S&L crisis from the 1980's; lack of safe food, air, or water. Even so, MSFT was CONVICTED of antitrust in the US in MSFT vs. Netscape. They got away without PENALTIES on appeal, but at least they were convicted-- by a Republican judge for those of you who might believe the bench is stuffed with "Lefties"; it isn't.
"I also want to remember that Microsoft has a lot of profits in Ireland! 'cause they have a lot of "licenses" there, even if MSFT makes R&D mainly in America"
That's a total BS.
www.microsoft.com/irel...
Microsoft Ireland is one of the country’s largest contributors to the Exchequer, spending approximately €350 million per annum in the Irish economy, with exports of goods and services to the value of €7.9 billion annually, and revenue in excess of 5.6% of the Irish GDP.
MS _is_ the global company, and the R&D is done everywhere.
just my 2 cents.
Tam
Youre beating a tired old drum that fits lockstep with your ideology. The fact that MSFT was convicted as a monopolist when they were is simply more evidence of legislative cluelessness. IBM was never found a monopoly when they were the only game in computing for 5 decades, but MSFT was even as all the issues being argued were long over?
Guys like you are just crazed ideologues. You want to GLOAT over the "demise" of MSFT while at the same time portraying them as some all powerful monopolist. Reasonable folks see through this and write these kind of comments off as having no credibility.
Much the same as we see the EU as practicing a very saavy form of protectionism (VAT on import, not on export? hmmm) while the US govt sells us down the river over geo politics.
I wont expect you to understand though. Ill just wait until they DO go after your beloved Google (which has already started, btw). A little lesson for you... "Monopoly" has nothing to do with your version of perceived ethics (however flawed it may be), or even "ethics" at all. Monopoly is about MARKET dominace, and Google has that. They will be found a monopoly by the EU, they will be regulated, the EU will ENSURE that they cant fully comply so they can milk them, and they will be fined. You can bet on that.
As long as we have US politicians more concerned with the global economy than the US economy, this is what we'll face.
I wouldn't have such trouble with Europe's crap, but they don't give the money from these cases out fairly, and they don't actually care about competition. They just want MS's market share to go down, regardless of how good MS's product may or may not be.