Will Internet Explorer Cost Microsoft Billions?

Microsoft (NASDAQ:MSFT) is in trouble in the EU after not following agreements made over antitrust laws on the Windows operating system.

A few years ago, Microsoft was slammed with $2.23 billion in fines from the EU antitrust probes, and afterward, it agreed to offer various Internet browsers to its user, not just Internet Explorer, the browser that was always packaged with the operating system and often hated by tech-savvy computer users. The problem is that some versions of Windows didn’t offer different Internet browsers, even after the settlement, and so the EU has filed antitrust objections, which means Microsoft could face further fines.

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Microsoft could face steeper charges for multiple antitrust offenses if charged. Some 10 percent of Microsoft’s computers didn’t comply with the prior agreement. For breaking an antitrust settlement, Microsoft could be fined as much as 10 percent of its yearly sales.

Any penalty for Microsoft could hurt its stock, and a whole 10 percent sales loss would definitely do damage to the software company’s value. In addition, being forced to offer alternate browser options could further reduce the popularity and usage of Internet Explorer, and therein damage any potential revenue from the browser.

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