What is the legal basis on which the Commission could impose penalty payments on Microsoft for unreasonable royalty levels?
Article 24 of Regulation 1/2003 entitles the Commission to impose penalty payments not exceeding 5% of average daily turnover in the preceding business year per calendar day to compel companies to put an end to infringements of EC Treaty anti-trust rules, where an infringement has been established by a previous Commission anti-trust decision. In a Decision of 10 November 2005 pursuant to Article 24(1) of Regulation 1/2003 (see IP/05/1695), the Commission specified that Microsoft would be subject to daily penalty payments of up to €2 million from 16 December 2005, if by 15 December 2005, it had not complied with its obligation to: (i) provide complete and accurate interoperability information; and (ii) charge reasonable royalty rates for that information. In addition, the Commission Decision of 12 July 2006 pursuant to Article 24(2) (see IP/06/979) also contained a provision pursuant to Article 24(1) of Regulation 1/2003 which specified that in the event of continued non-complianc
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