Microsoft Corporation (NASDAQ:MSFT) is in trouble with the European Union over a breach of agreement. Three years ago, the EU courts made a ruling that the tech giant would force them to offer a variety of internet browsers, but Bill Gates and company failed to comply.

Microsoft

The Redmond, Washington tech giant has been battling with the European Commission for a long time now, and it’s a battle that has cost $1.2 billion.

The current EU investigation started last summer, and is now gearing up for a formal court case against Microsoft. According to Joaquin Alumnia (the Competition Commissioner for the European Union), “The next step is to open a formal proceeding into the company’s breach of an agreement. We are working on this. It should not be a long investigation, because the company itself explicitly recognized its breach of the agreement.”

If Microsoft is found guilty of breaching the agreement (which is a likely scenario), they could be forced to pay up $7.4 billion. Microsoft Corporation (NASDAQ:MSFT) has placed the blame on a technical issue, but they have yet to make an official statement regarding the situation.

The upside to this pending lawsuit? Some experts predict that regulators could use this case to warn other companies, who may not otherwise follow up on their commitments.

Rachel Bicker, one antitrust attorney from Nabarro, explained, “They (regulators) would be looking to make an example, given the size of the company, and the long-running saga. The size of the fine could be fairly significant.”

Things aren’t looking to good for Microsoft Corporation (NASDAQ:MSFT), maybe it would be better if they just cooperated with the EU and paid up. Microsoft Corporation (NASDAQ:MSFT) made a big mistake and they know it.  I’m not certain what will happen to the tech giant, but I highly doubt it’s anything to worry about yet.