Saturday, July 15, 2006

Fine way to carry on compliance conflict


The European Commission's long-standing antitrust action against Microsoft has spawned an escalating secondary dispute that yesterday led to the US computer software group being fined almost as much as the €497m penalty originally imposed on it two years ago for abuse of dominant position. Brussels has now fined Microsoft for failing to carry out the remedies imposed on it in the 2004 ruling, and Microsoft has said it will contest this.

When the European Court eventually gets around, possibly at the end of this year but more likely next, to ruling on Microsoft's appeal on the substance of the case, this legal skirmishing about compliance may become moot. Meantime, however, the US company will be appealing against complying with the fine for not complying with the original decision, a surreal situation for which both sides must share blame.

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