During 2007-08, Microsoft had a real tough time dealing with the European Commission’s Competition Directorate. Steve Ballmer, the CEO of Microsoft had handled the situation very efficiently and never lost an inch of confidence in the company.

Microsoft received a Statement of Objection from the EC. It was alleged against Microsoft that since 1996 they had illegally tied the Internet Explorer with Windows based Operating Systems. Microsoft was only able to get out of this issue only after paying huge amounts in fine. Another fine amounting to $1.35 billion is still pending against them. Microsoft has failed to impress the commissioner of EC and thus unable to stop them from slapping huge fines on them regularly.

It was ultimately held by the Commission that Microsoft was trying to create monopoly in the market by linking the Internet Explorer with their own Operating Systems. The EC further clarified that such a situation created by Microsoft would only reduce the choice and freedom of a consumer. Microsoft has stated that they have followed and complied with the European laws and they will be able to give further comments only after going through the Statement of Objection.