Microsoft Fined for Price Fixing Office Suite
Microsoft has been slapped with a fine of approximately $11.8 million for price fixing its popular Office Home and Student 2007 suite at a recent retail promotion.
According to Bundeskartellamt, which is an independent federal authority assigned to the Federal Ministry of Economics and Technology in Germany, Microsoft fixed prices on Office at a particularly large retailer which received financial backing from Microsoft.
'The product in question was heavily advertised in the autumn of 2008 in stationary retail outlets. Amongst others, a nationwide active retailer advertised the product with financial support from Microsoft. Even before the launch of the advertising campaign in mid-October 2008, employees of Microsoft and the retailer in question had agreed on at least two occasions on the resale price of the software package 'Office Home & Student 2007'."
Price fixing is becoming a common occurrence with large companies that are able to flex their financial muscles onto their partners and resellers. The practice has been a big problem in the memory business, where companies actually agree with their competition on prices for their products.
Almost without a fight, Microsoft has agreed to pay the fine, saying that it would review its commercial process.
"We will use this case as an opportunity to review our internal commercial processes and ensure that we are in full compliance with German law," said Microsoft spokesman Jack Evans.
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M$ must be laughing in the face of these puney fines!!!!
Nowhere in there does it say why they were actually fined. If MSRP is a Manufacturers Suggested Retail Price & RRP is Recommended Retail Price then surely Microsoft as a manufacturer has the right to "suggest" a price to retailers. And when was it illegal for someoone to support a product launch with an advertising budget?
The whole paragraph after "According to the report" contains nothing illegal as far as I can see. What is all the fuss about? Surely Microsoft would have to get every retailer in the country to sell at the same price for price fixing to occurr?? The RAM analogy is different because they are actually competing companies - Office is only available from 1 company so they fix the price anyway!!
I agree with PT88 but M$ must get annoyed at these repeated attacks - I suppose they are an easy target. Eventually they will get really P!ssed off and vigourously enforce ALL of their patents. That would kill many companies in 1 go