With the software companies and manufacturers entering a lot of new markets recently, we see a number of issues crops up with these companies. Facebook, Google, Samsung, Apple all have been in the list and this time around, Microsoft is having trouble with the European Union.
According to insiders, Microsoft will be asked to pay a hefty sum as fine to EU, for messing up with its PC browser choice window. During the windows 7 launch in Europe, Microsoft had promised European customers that they would be offering rival browsers (like chrome, Firefox which were better than IE) on their Windows 7 versions. But, later on it was notified that almost 28m PCs did not show that screen which was a clear violation of their promise to their customers.
It was only a few years back (2009) that Microsoft was almost asked to pay around 10 percent of their global revenue in light of an antitrust investigation by EU. However, Microsoft was able to convince EU and solve the matter.
However, as Microsoft has breached their promise for the second time around in the past few years, the fine might be significant. Sources say “The commission is planning to fine Microsoft before the Easter break”.
Although, Microsoft didn’t comment on this possibility, they had blamed the issue on a technical problem last year and were planning to tighten their internal procedures to avoid such problems in the future. In this regard, Microsoft’s board had already cut some amount from CEO Steve Ballmer’s bonus in 2012.
Last year they had officially commented the following,
“We take this matter very seriously and moved quickly to address this problem as soon as we became aware of it. Although this was the result of a technical error, we take responsibility for what happened, and we are strengthening our internal procedures to help ensure something like this cannot happen again. We sincerely apologize for this mistake and will continue to cooperate fully with the Commission” Microsoft
It is worth noting that the company has already paid over $2.1 billion for violating various promises and this time around the company the company may even be asked to pay up to $7.4 billion (the maximum fine that can be levied by EU) for violating its promise for the second time.
We can’t be sure whether they would be asked to pay within this Easter, however, it would be interesting to see how Microsoft plans to tackle this HUGE problem.