Image via CrunchBaseThe record breaking fine imposed on Microsoft in 2008 by the European Commission, was a penalty for failing to abide by the orders of the regulatory authority four years back; it was asked to provide relevant information necessary for its rival competitors to work with computers running its software. Once such huge fine was imposed, Microsoft kept an extremely conciliatory approach in its dealings with the Commission; its competitors like Google Inc. have also learned from its example and kept a humble tone while dealing with EU.
"The hearing is a remnant of the old, aggressive Microsoft. The company has changed their strategy in dealing with the Commission dramatically since then," declared a lawyer from Latham & Watkins in Brussels, Susanne Zuehlke. She further explained that "They have become more cooperative in their own matters. In addition, they have become an active complainant. The Commission has picked up several matters against other companies in line with Microsoft's business objectives.”
The hearing will take place in the General Court of EU in Luxembourg, and will be witnessed by other companies intending to confront the imposed fines of the regulatory authority’s as well, like Intel Corp. An antitrust lawyer, Tobias Caspary told that “Even three years after the decision, the Microsoft fine remains as one of the highest ever imposed worldwide. It is therefore obvious that one key battle will be on whether the fine was excessive." He also stated that "From a legal perspective, a ruling will give some important insights as to what the Commission can do and to what extent it needs fines for failure to comply that significantly exceed the fines for the actual infringement, to have a deterrent effect.”
This non-compliance fine imposed on Microsoft is almost the completely double of the original 497 million euro penalty, which the Commission had imposed on Microsoft back in 2004, in light of the allegations proving the company had abused its dominance to spoil its competitors. Zuehlke said mentioned that "If Microsoft wants to win this case in total or in part, they will somehow need to prove that their initial proposals were timely and complied with the decision, or that otherwise the Commission did not afford them due process." She clarified that "The court will be mindful that the Commission's enforcement credibility is at stake, so unless the Commission made some serious mistakes in the process, the chances for Microsoft for an annulment or even a meaningful reduction of the fine appear fairly slim."
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