Microsoft faces huge EC fine

Microsoft could face massive fines after the European Commission today found the computer software giant guilty of abusing its market position.

Bill Gates's firm has been given a month to respond after Competition Commissioner Mario Monti gave his ruling. Mr Monti said the evidence showed Microsoft "weakens competition, stifles product innovation and reduces consumer choice".

It could be fined up to 10 per cent of its European sales for each of the years it is guilty of anti-competitive practices.

It's European, Middle East and Africa revenues are £4.3 billion a year and the Commission case has been ongoing for four years.

Microsoft is expected to challenge any EC ruling in the courts so putting off any fine for years.

The case centres on its Windows Media Player which allows people to play music and video clips on PCs. Its main rivals are Apple's QuickTime and RealNetworks' RealPlayer.

The Commission has taken huge amounts of evidence to show Microsoft was skewing how they delivered or developed their products to keep rivals out of their market.

Microsoft could now be forced to tell suppliers and competitors much more about how its software works.

Last year the firm reached a settlement with the US government to open up to competitors and avoid a multi-billion dollar fine and possibly facing a break-up.