Microsoft's €1.5 million-a-day fine could double, says European Commission

The fine, which totalled €280.5m, is the first to use a new rule that allows the Commission to penalise companies to the tune of 5% of sales.

Microsoft was ordered in 2004 to licence information to competitors on how the company's Windows operating system communicates over a network, but the Commission ruled that it has not done this to its satisfaction.

"No company is above the law," said Neelie Kroes, European Competition Commissioner. "I have no alternative but to levy penalty payments for this continued non-compliance."

The fine ran from a previous hearing on 15th December last year, when it was decided that Microsoft was not complying, to 20th June this year. The Commission said it would levy fines of €3m a day for continuing breaches of the order.

The original case concerned Microsoft's dominance of the PC operating system market and how it used its power. The company's systems work on 95% of the world's PCs but was ordered to open up its operating system to allow non Microsoft systems to operate fully with it. Microsoft appealed against the decision and lost.

The company says that it has complied with the terms of the ruling and continues to do so. "Microsoft is dedicating massive resources to ensure we meet the aggressive schedule and high quality standard set by the trustee and the commission in this process,'' the company previously said in a statement. "Our engineers are working around the clock to meet the seventh and final delivery date for this project, scheduled for July 18."