Microsoft is fined 561m euros (£484m) by the European Commission for breaking its promise to offer a choice of rival internet browsers.
The Commission,which said it was the first time it was sanctioning a company for the failure to satisfy a previous EU complaint, described it as a "very serious infringement."
In December 2009, Microsoft agreed to make a choice of browsers available to its Windows users in Europe following an anti-trust battle.
But regulators said that between May 2011 and July last year the company did not do this.
Over this period, the Commission said 15 million Windows users did not see the so-called browser choice screen which enables users to select their preferred search engine.
Microsoft blamed a technical error for the lapse and said it had tightened internal procedures to avoid a similar situation arising.
The European Commission has already fined Microsoft 1.6bn euros (£1.38bn) for not providing data at fair prices to rivals and for tying its media player to its operating system.
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