EU fines Microsoft record $1.35 billion

By David Lawsky

BRUSSELS (Reuters) - Microsoft was fined a record 899 million euros ($1.35 billion) by the European Commission on Wednesday for using high prices to discourage software competition in the latest sanction in their long-running battle.

The executive arm of the European Union said the U.S. software group defied a 2004 order from Brussels to provide the information on reasonable terms.

Microsoft has now been fined a total of 1.68 billion euros by the EU for abusing its 95 percent dominance of PC operating systems through Windows.

Its latest fine far exceeded the original and was the biggest ever imposed on a company.

"Microsoft was the first company in 50 years of EU competition policy that the Commission has had to fine for failure to comply with an antitrust decision," Competition Commissioner Neelie Kroes said in a statement.

For years after the decision Microsoft said it was making every effort to comply with the Commission's orders.

"Talk is cheap, flouting the rules is expensive," Kroes said. "We don't want talk and promises. We want compliance."

Microsoft said in a statement the fines concerned "past issues" and it was now looking to the future.