Microsoft hit with €561 million fine
Microsoft's Browser Choice Screen glitch in Windows 8 has cost the company dearly, with the EU handing down a €561 million fine.
When Microsoft's next-generation Windows 8 operating system launched, it did so without the 'Browser Choice Screen' that allows users to pick an alternative web browser to the bundled Internet Explorer - something the European Union had demanded of the company. While Microsoft apologised for what it claimed was a technical error, the EU was unimpressed and filed a formal complaint against the company.
That complaint became an investigation, and the investigation has now become a ruling that will see Microsoft forced to hand over €561 million in cash to the EU by way of apology - despite putting things right as soon as it had received the complaint, which was based on agreements made by Microsoft to the EU back in 2009.
While the fine is pretty hefty, it could have been worse: the EU's anti-monopoly regulations allow for a fine of up to 10 per cent of a company's annual turnover in such events - and with Microsoft having published a $18 billion revenue for the last financial year, that could have meant a €1.38 billion hit to the company's coffers.
Microsoft, for its part, has stated that it has no intention of appealing the EU's ruling. 'We take full responsibility for the technical error that caused this problem and have apologised for it,' a company spokesperson claimed in a statement to press. '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.'
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Discuss in the forums ReplyWell that's easy it will hit the consumer in the form of increased prices. Cheers EU, another nice service you've done me, because I didn't already know how to download another internet browser.
Well at least the rural french farmers who don't own PC's will be better off.
(Technically, Microsoft can't be a monopoly either, as there is competition - but the Monopolies Commission and other similar organisations target companies that are at risk of becoming monopolies rather than just ones that have already become a monopoly, in the same way that conservation organisations concentrate on animals that are at risk of becoming extinct rather than the ones for whom it's a little late to sign a petition.)
I completely accept that definition but Apple won't even let me change the default browser on my iPhone surly that is worse than Microsoft bundling IE with Windows and like you said Apple's market share in the mobile sector is considerable
As to why the EU hasn't investigated the inability to change the default browser on the iPhone, there are several possibilities. Off the top of my head:
1) It hasn't received a complaint from an EU-based rival company yet.
2) Traditionally, mobile phones have never allowed you to change the stock browser. Thus, it could be argued that Apple isn't stopping you from changing your browser, but that other platforms like Android are allowing you to change your browser as an added value feature that iOS lacks.
3) 55%, while a majority share, is still a long way away from threatening exclusive control of the mobile OS market.
When I buy a pc buy any manufacturer I can choose differing OS, s.
I agree and I think if you are going to do a ruling for one it should be for all, MS getting fined because they are the biggest doesn't seem right.
It should be a blanket ruling the first time you open the default browser on any device on any system it asks you if you want to keep using it or get another.
I'm no big corporate shrill but that is an incredibly aggressive ruling, even knowing it could have been more.
Microsoft had to keep apple in business to stop the company getting split up back in the day.
If andriod hit 90% market share for example the eu commisioners would look into it and probably look at splitting it up from google.
It's why most companies don't push for high market share as the commission board don't look kindly on it.
Even googles search engine does not have the market share ms does in the pc sector.
Self inflicted really.
When the case started (what, a decade ago?), IE had just massacred Netscape, and there really wasn't an alternative (they came out later.)
By the time the EU forced MS to something though, there was plenty competition about, and not doing bad either.
Actually Microsoft has been obliged to do this sind XP SP...errr 2 or 3, then 7 and yes, they've conveniently "forgot" to include it a couple of times before.
I completely understand why you're thinking the way you do, but I think you underestimate the stupidity of the general public. People are gullible and ignorant - they will do whatever is either conveniently in front of them, whatever they're told to do, and/or whatever they are familiar with. Since Microsoft gained so much popularity, whatever Windows is shipped with is bound to get a massive amount of users. Why else do you think one of the worst web browsers in existence gained so much popularity? Why do you think the crappiest presidents end up getting elected? Why do you think the most terrible music ends up on the top 50 lists? These all apply to the same reasons.
As for people like your mother who don't give a **** what browser they use, that's exactly where the problem falls as being anticompetitive - your mother won't ever be (or attempt to be) exposed to what could be better, and therefore leaves other products in the dust, which in turn makes MS a monopoly. It isn't fair for developers who put good work into something that is deliberately pushed aside.
EU... GFY.
I wondered if they conveniently "forgot" to include it or if it was a genuine mistake. If it was a mistake I bet whoever was responsible got their marching orders.
Forgetting something is a mistake, and you get fired for big mistakes. But I'm leaning toward someone "forgetting" (meaning, intentionally forgetting) because based on how the article is worded, it seems like MS was fully aware of their "mistake". I think the problem is MS didn't expect Windows 8 to be such a failure, so they probably didn't bargain the loss was going to take such a hit.
If what I say is true it's a shame MS doesn't pay their employees more (or at least charge less for their products), on the other hand, I've known former MS employees who were more than wealthy.
No pop up on install, but I was asked for a choice as soon as I clicked on IE.
As long as the choice is there and made obvious before you do anything, I see no problem.
Microsoft have NEVER prevented anyone from installing their browser of choice, and they allow that browser to be set as default.
However, MS agreed to make changes and then reneged. Still don't agree with it though.
I just assumed everyone went oooh Windows, right fire up IE, download chrome or FF. Shut down IE and hide the icons for ever. Change defaults.
Bask in the glow of a proper browser burning into your eyeholes.
let customers figure out how to get a browser, without one being installed by Microsoft (OEMs)
Lol. Not sure that would be in their interest. As it would just make manufactures install a 3rd party browser install selection screen on first boot or even worse just bundling a third party browser with no IE.... would not help their market share.