Chapter 1396 - Microsoft is sued all over the world
Chapter 1396 –Microsoft is sued all over the world
Currently, Microsoft is being sued by Korea, Japan, the EU, the US, and many other countries for antitrust.
In the past, Microsoft was sued for bundling IE with their operating system, and they are being sued for bundling MSN and video player software. This is not only happening in China. It is happening around the world.
Microsoft argued they had bundle IE with their operating system because users need a browser to surf the internet. They are only providing a free service, and users can opt not to use it.
But Microsoft’s IE is unable to be uninstalled or deleted. That’s why Microsoft’s agreement is not accepted.
In 1997, the US government had sued Microsoft for this reason, and Microsoft agreed to pay over 1 billion USD of bonds as a settlement.
If the users did not redeem the bonds, they would be donated to some public schools. However, the schools must use half of the bonds to purchase Microsoft products.
Microsoft might have lost, but it strengthens its monopoly status. This settlement also made children get used to their products.
Apple and many other companies objected to this settlement, and many states in the US don’t recognize this judgment. They continued with their lawsuits against Microsoft.
This year, the EU sued Microsoft for monopolization again. Their negotiation with Microsoft, which spans over five years, had not concluded. But Microsoft had used these five years to control the European market.
Microsoft is not afraid of lawsuits as it will help them gain publicity and appear in headlines worldwide. They can also drag out the lawsuit and continue to sell their products.
What if Microsoft loses the lawsuit and is fined by the country? The fines are nothing compared to their profits. Even if they are fined is higher than their IE and other software’s profits, they had also increased their market share by kicking out their competitors. The fines can be recovered within two to three years.
Microsoft quickly expands its market share in developed countries using bundle sales, and many countries are unhappy with it.
The EU refused to allow Microsoft to drag it out through another round of negotiation. They immediately passed the judgment and fined Microsoft 500 million Euros. It is equivalent to around 670 million USD.
At the same time, they ordered Microsoft to separate their operating system with the bundled software, and release their codes, including their Office software, to their competitors.
Microsoft appealed but was rejected.
If it’s not, for this reason, the universal activation code generator will not be developed so quickly.
After seeing the EU’s victory against Microsoft, Korea, Japan, and other countries sue Microsoft for the same reasons. Even the US starts to sue them again.
However, the Chinese market, which Microsoft values the most, is silent.
China’s Anti-monopoly law had just been implemented. They had not done anything against Microsoft in the past because they didn’t have any laws regulating monopolies.
…….
“What did you say? You want us to sue Microsoft for monopoly?” Party Member Bao was shocked.
“That right. We can fine them. Didn’t you see the news? The EU had fined Microsoft 500 Euros. If we calculate the amount by population, we can also fine them 500 million Euros. Even if we calculate base on their sales figures, the fine will be at least tens of million Euros.” Feng Yu replied.
“How much?! At least tens of million Euros? But Microsoft had just invested 1 billion USD here.” Party Member Bao hesitated.
This doesn’t seem to be right. They had just invested here, and we are going to fine them immediately afterward.
“Party Member Bao, investments and breaking the law are separate issues. We cannot let them off just because they had invested here. Also, don’t you think that using Microsoft as an example will show those foreign companies that China is not a place for them to do whatever they want?”
“Furthermore, Korea and Japan had sued Microsoft. Why can’t we sue them? Even the US government is suing them.”
“Huh? The US government is also suing Microsoft? Isn’t Microsoft a US company?” Party Member Bao is puzzled.
It’s just like China’s Lenovo Kingsoft. The Chinese government will do everything to support it, and why would they sue them?
“Microsoft is not the only software company in the US. They still have Apple, IBM, and many other companies. But Microsoft’s operating system is the best among them, and the US government is suing them. What are we waiting for? What would others think of us when our neighbors, Korea, Japan, and the Commonwealth of Independent States had sued them?”
“The internet will start saying our Chinese government is too weak and is inferior to Japan and other countries. Oh, I had helped you all find the lawyer. He is the one who helped CCTV sue those dishonest companies.”
“Tell me the truth. Why are you so eager to sue Microsoft? Is it because they are your competitors?” Party Member Bao looks at Feng Yu in the eyes.
“There’s no point of talking anymore if you think like this. Regardless of whether you sue Microsoft, we are still competitors, and we will not get a cent if they are fined. Moreover, I own some of Lenovo Kingsoft’s shares, but its profit is below average compared to my other companies.”
Feng Yu continued. “I am doing this for our country. Microsoft had suddenly acquired most of our software companies, and it’s obvious they want to control the market. Some overseas software companies also took this opportunity to acquire some of our software companies. Our software industry will be under their control in the future.”
“Microsoft China branch is second to their US headquarters. This shows how important our market is to them. Also, Microsoft cannot afford to pay so many countries and will most likely opt for private settlement. But we must not accept it. We must show everyone our stance against monopolies!”
Party Member Bao rolled his eyes. Is Feng Yu trying to teach him what to do?
“Are you sure we can win?” It will be embarrassing if the Chinese government sued Microsoft and loses.
“Of course. Microsoft would have been fined in other countries. Our country will be a laughing stock if we allow them to do whatever they want here. We are a big country and must show them our firm stance!”
……
Three days later, China’s Trade Committee officially announced they were suing Microsoft for monopoly and requested the courts to issue a 2.3 billion RMB fine!
When this announcement is released, there was an uproar on the internet.
This is the first time the Chinese Government issue such a hefty fine, and it’s against a foreign company!