Microsoft Fined $1.35 billion

Microsoft is no stranger to the receiving end of anti-competitive allegations. And, their accusers are often quietly dismissed via some form of: small payments/incentives, clever deal brokering, (pseudo)partnerships, or even more aggressive behavior. Well, not this time.

In 2004 the European Union recognized Microsoft’s practices as anti-competitive and went one step further with an Anti-trust ruling. This 2004 ruling was very serious: 497 million euro fine ($748 million) plus stringent requirements to play fairly with competitors.

As of last Wednesday, the EU recognized Microsoft’s non-compliance with playing fair.  So, the EU decided to take things to the next level: 899 million euro fine ($1.35 billion) plus really play fair. Needless to say this record fine is truly massive. I wonder if Microsoft will continue to do business as usual, or if they would perhaps… changes their ways.

You see, Microsoft is a very large, powerful, and aggressive company. As such the upper executive hierarchy is staffed by a large number of powerful and aggressive executives. And, to remain “competitive”, MSFT has a pretty much constant re-organization within the company and leadership ranks. From my experience: constant re-orgs, role re-definitions, and business plan changes are all fantastic ways to lose track of what you just did, what you’re now doing, and what’s really needed next.

I guess on some level I saw this coming. I mean, all the constant turmoil within upper management (especially within the Live Division) has made it hard (questionably impossible) to properly follow legal stipulations (including Anti-Trust rulings), while riding the razor-sharp-edge of competing like the uncaged-beast that Microsoft is. I’m surely not condoning Microsoft’s behavior, nor am I making excuses for their actions.  I’m just not very surprised.  But, I am curious how they will react with the ball (yet again) fully in their court.