Microsoft fined €497 million
Microsoft was fined €497 million when it lost its appeal against a 2004 decision by the European Commission. Microsoft had been accused of anti-competitive practices such as reducing consumer choice by bundling Windows Media Player (WMP) with Windows and of withholding protocols needed by server developers to integrate their systems with Windows. As well as paying this enormous fine, Microsoft has been obliged to release a version of Windows without Media Player and to release the source code of Windows Server 2003 to members of its Work Group Server Protocol Program.
Server protocols should be available otherwise other server developers such as Sun cannot develop products that work effectively with Windows. However, I can’t see the merit in a version of Windows without Media Player. How does this increase consumer choice? The fact that WMP is provided free does not prevent a user from downloading Quicktime, Real Player or other competitive products – which also offer a free basic version. Internet Explorer is provided free but increasingly people are browsing with Firefox (also free).
A more interesting question is why is so much software cheaper in the USA than in Europe.
Add comment September 26th, 2007