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 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!