Microsoft faces $7 billion fine by EU

Microsoft accepted a ruling in 2009 in which it agreed to offer a choice of browsers, and has admitted that it failed to do so.

Microsoft says it was a technical failure rather than contempt. In July it issued a statement claiming, “Due to a technical error, we missed delivering the BCS [browser choice screen] software to PCs that came with the service pack 1 update to Windows 7.” It had thought it had complied fully, but “we learned recently that we’ve missed serving the BCS software to the roughly 28 million PCs running Windows 7 SP1.”

Given this admission, there seems little choice but for the EU to fine Microsoft; and the general consensus is that it will be hefty. Reuters has quoted antitrust lawyer Rachel Bickler at Brussels-based Nabarro saying “They (regulators) would be looking to make an example, given the size or the company and the long-running saga. The size of the fine could be fairly significant.”

Competition law specialist Alan Davis of Pinsent Masons is reported in the Out-Law blog: “Davis said the Commission is able to fine companies up to 10% of their global turnover, meaning that Microsoft could theoretically face a bill for up to $7 billion if it is found to have failed to comply with the Commission's demands.”

All of this comes against a background of falling market share for Internet Explorer. When the saga started, it was by far the most popular browser in Europe. Now, says Reuters, according to web research firm Statcounter, it holds just 29% of the European browser market against Chrome’s 29.3% and Firefox on 30.3%.

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