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Forums - Microsoft Discussion - Microsoft loses $690M in anti-trust fine

Yeah, but they weren't figuring on paying out that money for the repairs....and I doubt they were counting on this, either...I mean, just because MS is rich doesn't mean they can just throw a billion dollars at every problem they come across...if this was happening to Sony or Nintendo everyone would be speculating on when they were going to shut down, not going "oh, it'll be okay...they're just a monopoly, so they'll pay that nothing fine and make more games." I'm just saying it can't be good to have ANY company, even MS, leaking a billion dollars a year on crap that could have been avoided...

Also this was already their fist appeal, which means they've been basically convicted TWICE now. 



                                   

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They are still one of the most profitable tech companies in the World and they also have over 23 billion in cash and short term investments where they could take the money from. It was a mistake on Microsoft's part but maybe it'll make them wake up and ensure it won't happen again (just like I'd bet they'll make sure the successor to the 360 won't have heating issues, and they have already made changes to their Windows lineup in Europe).



Normally I'm not a fan of the they are rich they will just shrug it off argument however I'm looking at it from this perspective. The lawsuit is essentially about their core business policies. Policies that have led to them being able to consistently make 12-14 billion dollars a year. Now there are only a few ways they could have avoided this firstly not abusing their position as the predominate OS preinstalled on the majority of home computers, hired better lawyers(not likely) , or bribed officials which of course is illegal and I'm not going to assume that they participate in that. So that basically leaves option one which they would not like either because the whole philosophy to their business is to bundle all their products together such that if you can't live without one you are forced to live with the rest. They eliminate competitors in markets like web browsers and media players not because they sell these standalone obviously they don't. They do it because oh if you use Firefox well you can run that on Linux/Mac too there is no reason for you to be tethered to windows if you like Firefox. If you like VLC movie player again oops these can be ran on competitor operating systems too. Essentially IE and WMP are only tools to keep the Windows as an operating system thriving and by extension MS Office aka the major cash cows of the company. Now why did I go through all the lengthy explanation its to close with that in this particular case I don't think their investors will care because ultimately there are 2 scenarios that Microsoft can be in at the current time. Scenario A) where they rule the OS market and make 14 billion a year with 800 million fines ( ignoring the Xbox thing because its another product that has nothing to do with Windows ) or Scenario B) Company that only has say 50-75 percent market share of OS/Office software and only makes 7-10.5 billion a year and has no fines of any kind levied against them. They are ruthless and successful for a reason I can't say I blame them the punishment doesn't fit the crime and there is more money to be made through the route that gets you in trouble with the law.



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I always thought that if you got caught doing stuff like this, stuff you had made...oh..say, 10 billion dollars from, then you forfeit that 10 billion dollars. I mean, a congressman embezzles like 300 million dollars, and they do what? Put him in jail for a year and fine him 10 million? What kind of crap is that? You don't rob a bank for 10 grand, spend the night in jail, get fined 100 dollars the next day when you get out, and keep the rest of the money.



                                   

Get over it. Nintendo was fined by the same commission for $151 million in 2002 and they actually helped to rip off consumers by price colluding with their distributors to keep Gameboy consoles and games artificially high in some European countries. Do you feel that they should have been forced to forfeit all Gameboy profits in Europe as well?

Microsoft included a free media player, there was absolutely nothing stopping people from getting another media player and they didn't rip off consumers yet you feel they should be fined 10 billion dollars over it? Ridiculous.



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I didn't say they should. I said if they make 10 billion through ILLEGAL means, yes, ALL of it should be forfeit. That was my whole point. Money made through illegal means should not stay in the hands of the person who accumulated it. Screwing someone out of a thousand dollars should not get you a 150 dollar fine. Then they can screw anyone they want and still make 10 to 1 profit, since they get to keep all the money they screwed you out of. Notice I am not saying MS. ANY company.