Microsoft shareholder Kim Barovic has sued Microsoft board in federal court in Seattle on Friday. He accused Microsoft board for mishandling the error in EU antitrust compliance related to Internet Explorer. Even though Microsoft accounted that non-compliance is due to technical error, Kim needs more explanation on this.
In March last year, the European Union levied its largest ever antitrust fine against Microsoft for breaking a legally binding commitment made in 2009 to ensure that consumers in Europe had a choice of how they access the internet, rather than defaulting to Microsoft’s Internet Explorer browser. Its investigation found that updated software issued between May 2011 and July 2012 meant that 15 million users were not given a choice. It was the first time the European Commission, the EU’s antitrust authority, handed down a fine to a company for failing to meet its obligations.
In her lawsuit, Barovic says she asked Microsoft’s board to fully investigate how that mistake occurred and to take action against any directors or executives that had not performed their duties. She says Microsoft replied that it found no evidence of a breach of fiduciary duty by any current or former executives or directors.
Microsoft formally responded with the following statement,
“Ms. Barovic asked the board to investigate her demand and bring a lawsuit against the board and company executives,” said an emailed statement from Microsoft. “The board thoroughly considered her demand as she requested and found no basis for such a suit.”