Global News

EU fines Microsoft $1.4bn The European Commission has fined Microsoft for defying sanctions imposed on it for anti-competitive behavior. As a result the US based computer giant would now have to pay a record $1.4bn (899m euros) as it failed to comply with the 2004 ruling that it abused its dominant market position. This fine is additional to the earlier fines of 280 million euros imposed in July 2006, and 497 million euros in March 2004. In the ruling EU said that Microsoft was guilty of not providing the key code to rival software makers. The commission also stated that the firm was the first to break the EU anti-trust ruling. Recently though, Microsoft had announced that it would open up the technology of some of its leading software, including Windows, to make it easier to operate with rivals’ products. It all started in March 2004 when Microsoft was found guilty of freezing out rivals in products such as media players, while unfairly linking its Internet Explorer browser to its Windows operating system at the expense of rival servers. As a result the company was asked to pay a fine of 497 million euros for abusing its dominant market position. Besides, two new anti-competition investigations were launched against Microsoft pertaining to similar issues.

Microsoft takeover bid a distraction: Yahoo In its annual report filed with the US Securities and Exchange Commission, Yahoo has said that Microsoft’s unsolicited takeover bid, now worth $41.6 billion, is becoming a distraction to the company, and that the proposal is creating uncertainty that might affect its business negatively. Yahoo has stated in the report that the bid has also created uncertainty for its employees that could affect its ability to retain key employees and hire new ones. In addition, it has also said that the bid could become a cause of concern for its advertisers and other business partners who may choose to terminate their association or not enter into new agreements with the company. Yahoo has also explained that its board of directors had unanimously decided that Microsoft’s bid was not in the best interests of the company and its stockholders. In addition, it also said that the board is continuing to evaluate all its options. The company has also mentioned in the report that its board has been named in seven shareholder lawsuits over its decision not to accept Microsoft’s offer, and that these lawsuits could become time consuming and expensive. Yahoo’s stock price has remained volatile recently as a result and the company has said that it may further make it more difficult for it to be acquired by a third-party.