European regulator fines Microsoft $731 mn for breaking agreement

The European regulator today imposed a hefty €561 million ($731 million) fine on US technology giant Microsoft for breaking an agreed settlement of offering European consumers a choice of web browsers.

This is the first time that that the European Commission (EC) has come down heavily  for failing to comply with the terms of an anti-trust settlement.

Under a 2009 settlement, where Microsoft was not fined, the Redmond, Washington-based company had promised to give Windows users the option of choosing another browser rather than having Internet Explorer automatically installed. (See: Microsoft settles browser antitrust case with EU)

Consumers in Europe (specifically the 30-nation European Economic Area) who buy a new Windows PC with Internet Explorer set as their default browser, would be shown a 'ballot screen' from which they could easily install competing browsers from the Web.

The legally binding agreement ended the dispute, which had been going on for 10 years prior to 2009.

The EC said that Microsoft failed keep its end of the promise since some 15 million installations of Windows 7 in Europe from May 2011 until July 2012 did not have the option of installing another browser.