Microsoft Corporation (MSFT) Handed $731M Antitrust Fine by EU

Microsoft Corporation (NASDAQ:MSFT)a top stock play among hedge funds we track – apparently reneged on a promise to fix an antitrust issue, and European Union regulators don’t take too well to promises being broken. So the EU put a value on a broken promise, and handed down a stiff sanction to Redmond and a warning shot to other companies that the EU is investigating or may investigate in the future.

With this latest sanction, totaling $731 million, Microsoft Corporation (NASDAQ:MSFT) is now the most-sanctioned single company by the EU for antitrust violations over the last decade (about $2.8 billion). The latest sanction stems from a past order from EU regulators to have Microsoft provide users a choice of web browser to use, instead of defaulting to Redmond’s own Internet Explorer browser.  Microsoft made a “legally binding” promise to correct the issue and provide alternative browsers on its Windows platform, but a later investigation revealed that Microsoft did not honor its obligation with software sent out for more than a year ending in July 2012. That affected an estimated 15 million users.

Microsoft Corporation (MSFT) Giving Apple Inc. (AAPL) a Run for its ‘Patent Money’“If companies agree to offer commitments which then become legally binding, they must do what they have committed to do or face the consequences,” said EU competition commissioner Joaquin Almunia at a presser announcing the sanction. “I hope this decision will make companies think twice before they even think of intentionally breaching their obligations or even of neglecting their duty to ensure strict compliance.”

In response, Microsoft Corporation (NASDAQ:MSFT) wrote in a statement, “We have apologized for it. We provided the Commission with a complete and candid assessment of the situation, and we have taken steps to strengthen our software development and other processes to help avoid this mistake – or anything similar – in the future.”

Microsoft first encountered the EU’s sanction wrath in 2004 for having a default Windows Media Player tied directly with its Windows software and not giving users an option of other media-streaming software.

What do you think about this sanction? How do you think this will affect Microsoft Corporation (NASDAQ:MSFT)? Give us your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stocks mentioned.

Please see these related MSFT articles:

Microsoft’s a Worthy Ticket – But No Easy Ride

Microsoft Gets BBC’s iPlayer … Sort Of

Is Xbox a Distribution Channel for Low-Budget Indie Films?

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!