Tough end to the year for Microsoft

Ooh, what a tough end to the year for Microsoft. And what a rough year it's been for them. Many would argue that 2006 can only be better for them, mainly because 2005 has been so bad. Their results have been ok, it's been the market stumbles that have challenged them.

2005 has been marked with bad press, tough competition, delayed software, not enough Xboxes, a failed partnership with AOL, Google and now the European Commission on their tails.

For the European Commission has formally accused Microsoft of failing to comply with its landmark anti-trust ruling from March 2004, and warned the US software group that it could face fresh financial penalties early in the new year. And these penalties could amount to $2.5M per day. Ouch!

This all relates to Microsoft failing to react to the requirement that they reveal information about the workings of its Windows operating system to rivals. This way other software companies can ensure that they're server software runs smoothly with Windows devices. Apparently they have done everything to stall this. Naughty boys.

Microsoft now has five weeks to meet the Commission’s demands. If it fails to do so, the regulator will impose a daily fine on the group that can eventually reach up to €2m a day. However, for the Commission to impose the maximum penalty Microsoft would also have to be found to have failed in other duties, so the penalty is certain to start at a lower level.

Shame, this isn't exaclty a great way for Microsoft to end the year. Losing the AOL deal to Google should have been bad enough. Now Microsoft have to resort to fighting back against Google by embedding search in their next version of Windows due out at the end of 2006. I wonder when Microsoft will be able to compete better by other means than leveraging their Windows franchise? Oh well, 2006 should be better for them, but for Google as well I predict.