Well, as an outsider (non MS employee and US citizen) I'm not surprised by this at all. I mean, if I were a company that was repeatedly fined Billions of $$ for doing business on a continent...I'd be reluctant to invest much more than the minimum going forward. Of course, that's just my take on it.
If MS were to invest in Zune or MC over in Europe, it might not be long before the EU would take them to task over more antitrust issues.
Just my $.02
The EU has more than 500,000,000 citizens. Let that number settle in for a moment.