The European Union fined Microsoft US$ 1.4 billion for not paying the fine of US$ 497 million levied in 2004, and for charging its rivals too much for the code required to solve its interoperability issues.

For beginners, the story goes as follows:

It all began in 1998, when Sun Microsystems lodged a complaint with the EC that Microsoft was not giving out the necessary information for facilitating interoperability between PCs using Windows OS and servers using non-Microsoft OS.

After a thorough investigation, the EC, while upholding Sun's appeal, also found that the software giant had been embedding its Windows Media Player and Internet Explorer to its O/S affecting the rival media players and Internet browsers. The term used was 'Abusing Market Dominance'.

In 2003, the EC found Microsoft guilty and levied a fine of US$ 613 million and suggested remedies to the company's solutions. Microsoft further appealed this ruling in the European Court of First Instance which levied a fine of US$ 497 million and asked Microsoft to give the necessary code to fix the interoperability issues.

Though Microsoft has made some amendments to its software to allow compatibility, the EC seems not fully convinced. The latest probes into the company's Office software and Internet browser stands as the testimony. Microsoft still has a chance to prolong this second round of penalty by taking its appeal to the European Court of Justice.

I think the lawyer would have become a billionaire by now with the cases Microsoft has been involved in during the last few years.

On the whole, the episode brings to all a sense of déjà vu - Europe behaving strictly with American companies.