As Connie Madon reported earlier today on BloggingStocks, federal district court judge Judge Jed Ratkoff declined to sign off on Bank of America's (NYSE: BAC) settlement with the SEC.

Madon wrote that "The judge ruled that the $33 million fine did not give any specifics and did not specify whether or not any of the TARP monies were used in the $33 million figure."

Microsoft Corp. (NASDAQ: MSFT) has overcome some legal hurdles in the U.S. in recent years (and has been slammed as well), but the world's largest software maker continues to see complete opposition from its European Union buddies (heh), as evidenced by last week's ruling. It's tough these days for regulatory governments and agencies not to have a say in the role of high-tech now that the sector is one of the world's largest. The largest kid on the block is always (always) the biggest target. Think about Wal-Mart Stores, Inc. (NYSE: WMT) for another example.

In many cases, in the name of "protecting consumers" the stepped-up efforts to curb certain practices end up hurting future innovation, a fact proved over and over in history but shunned by lawmaking bodies consumed with a play for power and the banishment of a main tenet of capitalism -- staying the heck out of the way and letting market forces define equilibrium. But, the equilibrium can be tilted with corporate abuse and monopolistic practices, and so government and private enterprise enter into a grudge match. It's very accusatory, and generally a very expensive process for both sides.

Should the EU examine Microsoft, it would see that the software giant is under attack now more than ever, even as it continues raking in growth and profits every quarter. There are so many alternatives to many of Microsoft's products it could boggle anyone's mind. Who legislates this kind of sea-change as it happens? Customers and market forces, of course. Microsoft was found guilty of anti-competitive practices, which is a fact. It's still vulnerable from being popped off its perch.

Everything from open-source web server software to free operating system and office productivity packages will challenge (oops, is challenging) Microsoft like never before, and the company up for the fight of its life. That's what capitalism is: creating competition by taking power away from government and letting the principles of economics take over. In Microsoft's case, it's unfortunately not that easy when it comes to the EU.

[Disclosure: I own MSFT shares as of 9-24-07]

At long last I can give eBay Inc. (NASDAQ: EBAY) a pat on the back about something. Most of you know that's pretty hard for me, but this time eBay has gone the extra mile to prove to me that it at least recognizes there are some nasty pirates and profiteers operating on its site. With the direction of New York Attorney General Andrew Cuomo's office, eBay assisted in putting the clampdown on an unscrupulous jewelry seller that was ripping off eBay customers by placing price inflating bids on its own merchandise.

EMH Group, the company in question, is said to have placed nearly a quarter million fraudulent bids on nearly $5 million worth of merchandise within the period of one year. Of course, EMH claims no wrong doing, but it has agreed to pay $400,000 in fines and will be "banned" from the online auction industry for four years. As for its victims, it is said that there will be a buyback incentive program "for certain items." I'll bet those certain items are all gold and EMH expects to purchase them back at the previous sale price. Yeah, ain't that just peachy.

Yes, I'll give eBay a pat on the back for exposing just how easy it has been to make millions of dollars of fraudulent business on its site. As far as Attorney General Cuomo's part in this, until he sends someone to prison for stealing from the public like this, in my opinion he's just blowing smoke in our eyes to the tune of $400,000. Without even checking, I'll give you 15 to 1 odds he's a Harvard man.

And so it goes.