Exclusive: EU may fine Microsoft over browsers by end-March - sources

BRUSSELS Thu Feb 28, 2013 2:58pm EST

The interior of a Microsoft retail store is seen in San Diego January 18, 2012. REUTERS/Mike Blake

The interior of a Microsoft retail store is seen in San Diego January 18, 2012.

Credit: Reuters/Mike Blake

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BRUSSELS (Reuters) - EU competition regulators plan to fine Microsoft Corp before the end of March in a case tied to the U.S. software giant's antitrust battle in Europe more than a decade ago, three people familiar with the matter said on Thursday.

The European Commission had accused Microsoft in October last year of breaking a promise to offer European consumers a choice of rival browsers in the previous version of its Windows operating system.

The company made the pledge in 2009 to settle an EU antitrust investigation and stave off a penalty that could have been as much as 10 percent of its global revenue.

"The Commission is planning to fine Microsoft before the Easter break," one of the sources said, adding that it is possible that procedural issues could push back the decision.

The size of the fine could be significant because this is the second time that Microsoft has failed to comply with an EU order.

The spokesman for competition policy at the Commission, Antoine Colombani, declined to comment.

Microsoft, whose shares were up slightly in afternoon trading, did not immediately reply to a request for comment.

The Commission has sanctioned Microsoft to the tune of 1.6 billion euros ($2.1 billion) to date for not providing data at fair prices to rivals, requiring software developers to create products to work with its products, and for tying its media player to its operating system.

The EU antitrust authority has said that the latest offence occurred between February 2011 and July 2012. Microsoft has blamed it on a technical error, saying that it has since tightened internal procedures to avoid a repeat.

The matter did not escape the notice of Microsoft's board, which cut the bonus of chief executive Steve Ballmer last year, partly because of the Windows division's failure to provide a browser choice screen as required by the European Commission, according to its annual proxy filing in October.

Microsoft's share of the European browser market has roughly halved since 2008 to 24 percent in January, below the 35 percent held by Google's Chrome and Mozilla's 29 percent share, according to Web traffic analysis company StatCounter.

Microsoft's shares were up 12 cents at $27.93 on Nasdaq.

(Reporting by Foo Yun Chee, additional reporting by Bill Rigby; Editing by David Goodman and Nick Zieminski)

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Comments (3)
harley22x wrote:
So… I assume the EU has pushed the same regulatories onto Apple computers? Apple should not have iTunes or Safari pre-installed either, like the rest of the world. Stupid europeans…

Feb 28, 2013 3:11pm EST  --  Report as abuse
Agree! Let alone the pre-installed Safari and ITunes, just try and do any hardware add-ons/customizing let alone software. You can’t even change the battery yourself!

Feb 28, 2013 4:12pm EST  --  Report as abuse
Janet010 wrote:
As much as I think that people should have the free browser choice, I think the EU goes way too far. Microsoft was verdicted way back when internet was relatively young (to the common user). In the ’13′s, people do know how to change the browser. Except our EU fossils, appearantly.

I live in The Netherlands and therefore bound to the EU regulations. Mostly it is quite okay, but at times like this, I am ashamed for that.

Mar 01, 2013 8:24am EST  --  Report as abuse
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