EU Fines Microsoft – What Is Next; Regulating the XBox?

Implications: I like the EU’s view of the fine; they called it a large parking ticket. I am wavering between believing the EU or it being the typical anti-American sentiment.

Analysis: The EU has fined Microsoft $1.3 Billion for failing to comply with the commission’s 2004 antitrust ruling.  I have been open about my belief the EU has targeted Microsoft.

However, I will be the first one to say that once a decision has been made the company needs to abide by the decision or appeal.  Microsoft is getting smacked because of a 2004 ruling over actions supposedly committed in a 488 day period.

All businesses are entitled to some degree of intellectual property protection and this includes being closed.  Companies need some level of protection otherwise they would be intentionally giving away their business.  Of course, the rules change when applied to dominant players.  This is where we enter that area of anti-trust and monopolistic behavior.

I support taking down jolly green giants if they abuse their position.  However, the EU’s actions smack of targeted decisions.

What would make me think otherwise is a competitor actually coming up with something better than Microsoft’s Vista.  I am all for replacing the whole Windows operating system if there is something better.  However, no one has come up with anything better. If a company has come up with something better, than it is still secret.

Disadvantaging companies because they are better marketers or smarter offends me.  This is not a game of golf where we handicap players in order to make the game enjoyable for the worse amateur players.  This is business.

How much more does Microsoft have to open up its platform?  The EU wants to see a demonstrable market effect.  Well has any European company actually made a run at the space or is the competition waiting for the bar to be lowered so much that it has to step down into the playing field as opposed to stepping into a level playing field?

I have openly criticized Microsoft for that train wreck they call Vista so do not think I idolize Microsoft the way Apple heads idolize Apple.  So there is no favoritism on my part and no bias on my part.  I am asking that question of Microsoft – Should you even stay in Europe?  If the competition wants the space so bad why should Microsoft pay for it?

Microsoft should focus on China.  Europe is a dead market for you.  China is the place to be.  Leave Europe and see what the EU and third party suppliers have to say then.  Even better let us see what the competitors have to say.  There is an old belief in technology sales –“You want a competitor so that you can show the customer how good your company is compared to others in your space”.  How about this; maybe no one has a better solution.

I support the notion of open access.  However, the question that needs to be raised is whether or not Microsoft will be impacted by the EU’s actions in other areas of its business.  The areas of business I am referring to are Microsoft’s forays into content and gaming.

What is next, regulating the Xbox and the games?