Microsoft Fined $11.9 Million for Office Price-fixing

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8:51 AM - April 9, 2009 by Jane McEntegart

Microsoft has been dealt a second blow in the courts as a ruling from Germany sees the software giant fined nearly $12 million.

The German competition authority, the Bundeskartellamt, ruled that Microsoft had coordinated with retailers for Microsoft Office Home and Student 2007, which resulted in anti-competitive pricing. The Bundeskartellamt said that prior the launch of the advertising campaign in mid-October 2008, employees of Microsoft and the retailer in question had agreed on at least two occasions on the resale price of the software package “Office Home & Student 2007.”

"The product in question was heavily advertised in the autumn of 2008 in stationery retail outlets,” said the Bundeskartellamt in a statement. “Among others, a nationwide active retailer advertised the product with financial support from Microsoft," the statement continued.

While Microsoft has accepted the ruling and will be paying the fine in full, the competition authority assured suppliers and retailers alike that not all talks regarding resale is illegal. “However, this must not lead to a form of coordination where the supplier actively tries to coordinate the pricing activities of the retailer and thus retailer and supplier agree on future actions of the retailer. In the present case, this boundary has been crossed.”

Microsoft this week lost a patent infringement suit against Uniloc Inc. which could cost the company $388 million.

Source : Tom's Hardware US

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maximiza 04/09/2009 3:34 PM
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Its stupid to sue when you have open office around.

squatchman 04/09/2009 4:27 PM
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yea... I'm not exactly sure why microsoft is paying this fine. Their next biggest competitor(OpenOffice) gives the product away for free. The retailers were the ones to gain with an "unfair" advantage in pricing.

timmorey 04/09/2009 4:42 PM
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So basically, Microsoft offered to sell their product for a specific price, and people voluntarily chose to purchase it for that price. That is being considered criminal. At the same time, people with guns make me pay taxes to support programs that I don't care about, and that is considered virtuous. What sort of morally vacant people are coming up with these rules?

dark_lord69 04/09/2009 5:12 PM
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The people that were ripped off will never see a dime of that money.

Anonymous 04/09/2009 5:17 PM
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And this comes from the high and mighty company that so self-righteously and hypocritically makes criminals out of average citizens with their dogma about moral legal obligations. Check out that they also lost another case worth even more. What a bunch of criminals. We should sue their 11 year old children hundreds of thousands of dollars for this and also their dead grandparents. I guess when you are buying the politicians off through lobbyists, you can make up the laws as you go. Fortunately, the judicial system is not a part of the legislative system.

hellwig 04/09/2009 5:41 PM
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Sadly, OpenOffice is not ready for Prime-Time, mostly because everyone still uses the proprietary Office .doc format. Hopefully the move to open standards will fix the compatability issues, and OpenOffice will gain a better foothold. Nothing pisses me off more than opening a .doc in OpenOffice that doesn't render properly because someone used some feature in Office no one else even knows about.

That said, it doesn't matter what you're selling, you can't conspire to fix the price. Microsoft could sell donuts, it wouldn't matter, they still couldn't fix the price with a retail chain. Manufacturers put MSRP values on products, but the retail outlet gets to decide how much to charge (and in theory, that price is driven by what consumers are willing to pay, in theory).

frozenlead 04/09/2009 6:14 PM
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hellwig :
Sadly, OpenOffice is not ready for Prime-Time



Having been screwed over on presentations with people who use it, I would tend to agree. The lack of a truly standard format for documents is really a pain to deal with.

the_one111 04/09/2009 6:39 PM
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Sigh, everybody hates MS, not without good reason, but what would happen if they went bankrupt in a month...? God, I would never use a computer again, apple would probably be the head OS company....

This is so retarded, people are getting a almost racist hate of microsoft...

But yet... guess who made half the programs you run...

[/rant]

(Oh and I don't LIKE microsoft, but they are a hell of a lot better than the alternatives..)

skine 04/09/2009 6:46 PM
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hellwig :
Sadly, OpenOffice is not ready for Prime-Time, mostly because everyone still uses the proprietary Office .doc format.



OpenOffice supports Word 6.0, 95, 97/2000/XP and 2007 documents. Open documents can be opened in Word after installing a plugin, or they can be converted using Media-Convert.com or Zamzar.com.

skine 04/09/2009 6:53 PM
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the_one111 :
This is so retarded, people are getting a almost racist hate of microsoft...


Hatred for Microsoft isn't because of the color of their skin, or any prejudicial notions. It's because of what they've done. To even say that we're just Microsoft haters is ridiculous following an article that shows that Microsoft was engaged in illegal practices.

Anonymous 04/09/2009 9:34 PM
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It's good to see that the EU continues to generate new revenue streams in this challenging economic time. As apparently they can't tax their people anymore then they already do, going after large corporations seems to be a 'good' alternative.

Sell something at too high a price? Price gounging/monopoly! Sell it too low? Anti-competitive! Give rebates to retailers for large volumes? How dare you screw consumers by allowing retailers to lower costs and lower prices! I think the EU gov't should just publish what they consider acceptable pricing to be, what acceptable features are, and what acceptable annual revenues should be. Let's stop this charade and just get to the central planning already!

oserus 04/09/2009 10:00 PM
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Let me see if I have straight... a supplier can talk with a vendor, but they cannot discuss the price at which a vendor is going to sell it at??? Regardless of if it is MS or not that is assinine.

falchard 04/09/2009 10:19 PM
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The European Union is trying really hard to replace a Microsoft Monopoly with a different unix iteration monopoly.

skine 04/09/2009 10:26 PM
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Quote :Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilize prices. The principal feature is any agreement on price, whether expressed or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging.


Microsoft didn't simply apply a set MSRP (manufacturer suggested retail price), but they told the retail outlets to sell office at a given price.

anamaniac 04/10/2009 1:18 AM
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What price competition? Microsoft's only real competition to Microsoft Office is free, ha.

kenjiuchimura 04/10/2009 7:38 AM
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dark_lord69 :
The people that were ripped off will never see a dime of that money.



My notion exactly. Even if they weren't being ripped off, where will the money go?

plbyrd 04/10/2009 5:23 PM
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Quote :While Microsoft has accepted the ruling and will be paying the fine in full, the competition authority assured suppliers and retailers alike that not all talks regarding resale is illegal. “However, this must not lead to a form of coordination where the supplier actively tries to coordinate the pricing activities of the retailer and thus retailer and supplier agree on future actions of the retailer. In the present case, this boundary has been crossed.”


Dry that one out and fertilize the lawn with it. It's blatantly obvious that every one of these European lawsuits against Microsoft is just cover to further marginalize Capitalism in European society as Capitalism is the one true path to providing individual freedoms.

baka-mono 04/10/2009 7:10 PM
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so... microsoft got fined when they sell their software cheaply. they get hate mail when it gets expansive. anyone got a better suggestion?

demonhorde665 04/11/2009 3:04 PM
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price fixing what aload of s--t, of allt eh "work" related program packages offered by companies MS office is one of teh cheaper ones , why havent these guys gone after autodesk or adobe ??? shit auto cad and 3ds max price goes up 100-200 dollars ever freaking version , last i checked retail on auto cad is around 7000 US dollars and 3ds max is at 3,700 US dollars. Adobe CS verison alost go up a little every year last i cehcked retail on CS 3/4 was around 600-700 us dollars. if any one needs to be hit in the nads over pricing it is these guys

plbyrd 04/11/2009 3:52 PM
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@demonhorde665

Want to talk expensive? IBM Rational Suite, which is a set of software for developers that is analogous to AutoCad for designers, costs over $15,000 --- per person. And that's in addition to the costs of the server software that backs the $15,000 client software.

plbyrd 04/11/2009 3:53 PM
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dark_lord69 :
The people that were ripped off will never see a dime of that money.



Of course not, nobody got ripped off. This EU will just use this money to further marginalize Capitalism.

__-_-_-__ 04/11/2009 7:28 PM
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$12m... lol they make that every second.

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