Was Microsoft's EU fine too much? One economics professor says, "Yes"

[scottie]

@ timmah.

You are correct that MS is under no obligation to offer their competitors products. If they don't bundle the computer with WMP, they are under no compulsion to offer itunes bundled. However, you kind of need a web browser - even if only to download a different web browser.

What they can't do (In the EU) is use their monopoly in the OS business to give their products an unfair advantage. Wrangling over the definition of 'monopoly' and 'unfair' is why we have lawyers and juries.

I am aware of the facts, you don't need to bother simply repeating them.

I love your use of the term 'voluntary'.

There was an investigation, which (MS knew) was likely to end in a court case, and likely to end in MS losing that court case.
In order to prevent them from losing the court case, which would involve very serious penalties, MS said "We will start offering a browser selection screen if you drop the investigation"
This was effectively a plea bargain, except MS didn't have to explicitly plead guilty.
MS then failed to keep the terms of their bargain, and were fined for it.

MS took voluntary action, in order to avoid being charged with the crimes they committed.

The simple facts are
* By bundling I.E. with Windows, and not bundling other browsers, MS broke EU law. You may say they did nothing illegal, but that is because you know USA law, not EU law. They broke the law.

* MS voluntarily made a promise to the EU that they would start obeying the law in order to secure a voluntary promise from the EU not to investigate the fact that they previously broke the law.

* MS broke that promise, leaving the EU free to break theirs.

I can understand you thinking that the fine was too high, but you seem to be saying that MS did nothing illegal? This is quite simply untrue, I don't understand why you can't grasp this.