I don't know if this has already been done but if it hasn't, what do you lot think about that size of fine and who its happening to in this context. It was rule on yesterday by the European Commission I believe.

Later

Critic

Got a link to the news story? I seem to have missed that one.

I'm pretty sure Bill G carries that much in pocket change . . .

Be funny if Microsoft said b0ll0x we won't sell product in Europe any more and we all went out of business.

Slightly jumped the gun but it will go through by the EC's history in such things, they stopped the merger of General Electric.

Here is the link >>

http://www.usatoday.com/tech/techinvestor/techcorporatenews/2003-08-06-eu-microsoft_x.htm

and

http://search.ft.com/search/article.html?id=030807001106&query=Microsoft+and+the+EC&vsc_appId=totalSearch&state=Form

It's not a figure nailed on, it is a percentage, 10% of the turnover i think. Most companies coudn't lose that much and not have an impact on the share price and the ike.

A replay of 2001 or didn't the EC cash in back then?

Today:

"The EC could fine Microsoft up to 10% of its yearly sales, about $3.2 billion, though its fines usually are wrist-slapping small."

October 2001:

"The commission, the European Union's executive body, has authority to impose a fine of as much as 10 percent of Microsoft's annual revenue, or $2.5 billion."

MS's annual revenue seems to be improving regardless. :)

The commission focused on two practices:

• It objected to Microsoft's packaging of its music and video player in its Windows operating system — which it usually does in both Europe and the USA. The software allows customers to listen to music CDs and watch video clips.

• Regulators blasted Microsoft for using its dominant position to control the market for computer servers, which power Web sites and corporate computer networks.


That seems to be grasping a little to me. I use Windows Media Player because I prefer it. If I didn't I'd just install WinAmp, Quicktime or something else. DVD's are played via PowerDVD - again because I prefer it.

I'm not sure what they're talking about in regard to servers. While I'm not in Europe I don't feel I've ever been 'controlled' into using Windows - and don't.

It could be that just because the US GOV got bought with that offer by Microsoft last year, worth a billion dollars i think, that the EU might go through with it.

Alot of politics involved her i think, a good example is the US sanctions on European steel and products last year.

I don't think the reason why they plan on doing it is essential for them, just that they do.

The EU does seem to be acting a bit oddly lately. There's that whole overseas seller / VAT issue as well. If I was more cynical I might be thinking 'money grab'.

So Microsoft would be selling a European version of Windows. Plus, the $3.5 billion fine is just what it could face if it doesn't.

The MSFT stock is not really affected by this today. So it might delay its rise for a couple of more months. Big deal.

I doubt the markets would react to an action which hasn't, yet, been carried out.

If it goes through and or the profits are affected in the quaterly and annual reports, then there might well be an impact.