Microsoft risks paying $3.2 billion fine to EU

BRUSSELS, Belgium – Microsoft, the world leader in computer software risks paying $3.2 billion in fine to the European Union or 10 percent of its annual sales turnover according to Mario Monti, Chief of the EU Commission on Competitions.

Brussels has accused Microsoft of violating EU anti-monopoly regulations with its Windows software installed in 95 percent of the world’s micro-computers which has enabled the US company to control the development of parallel computer softwares leading to the elimination of rivals like RealNetworks and Sun Microsystems in the US.

The American software giant, which was founded by Bill Gates and Paul Allen in 1975, has been under investigation by the EU for the last four years.

Steve Ballmer, managing director of Microsoft arrived in the European capital last Tuesday (March 16) for ultimate negotiations with the members of the Commission led by Monti to try to reach a compromise with the EU on the issue of financial sanctions but failed to "present convincing or new arguments", according to a Commission spokesman.

A disappointed Ballmer flew back to the US on March 18 after failing to draw any concession from the Commission during the marathon 11-hour negotiations.

The European Commission’s 15-nation representatives will tackle the issue of the final amount in penalty to be imposed on Microsoft in a meeting scheduled in Brussels next Monday (March 22) and is expected to release its decision by March 24.

The EU has so far imposed fines against Microsoft amounting to only two percent of the company’s annual turnover.

European analysts say that the US firm, which has assets of $52 billion in its balance sheet declaration in Dec. 31, 2003, even a fine amounting to 10 percent of its gross sales will not seriously dent the company’s huge profits.