by CIO Staff

E.U. to Raise Microsoft Daily Fine Cap to $3.8M

Jul 10, 20062 mins

The European Commission expects to raise the cap on future fines against software giant Microsoft to $3.8 million a day should the Redmond, Wash.-based company continue to fail to comply with a 2004 antitrust ruling, Reuters reports.

The news comes from a “diplomatic source” who spoke as European Union competition regulators gathered to discuss the appropriate fine to levy against Microsoft for its past failure to comply with the 2004 decision, according to Reuters.

The commission did not provide Reuters with an official comment.

The commission is set to meet on Wednesday to make its final decision, and union Competition Commissioner Neelie Kroes will announce the news in a press conference following the meeting.

If a fine is handed down to Microsoft, it will be the first time the commission has issued a penalty against a company for failing to meet an order meant to cease an abuse, according to Reuters.

The current limit on daily fines is $2.5 million, Reuters reports.

Whatever amount the commission decides to penalize Microsoft, it will come on top of the $637 million in fines already handed down in 2004 by former Competition Commissioner Mario Monti.

Under European Union law, the European Commission can fine a company as much as 5 percent of its daily turnover during its previous year of business, according to Reuters.

In 2005, Microsoft’s total turnover was $40 billion, which breaks down to roughly $110 million a day, Reuters reports.

Related Link:

  • Microsoft Could Face E.U. Fines of $2.5M

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