Subscribe to Windows IT Pro

 

Get Newsletters

  • Get the Latest News
  • Product Updates
  • Helpful Tricks
  • Productivity Tips

Subscribe Now!

March 15, 2004 12:00 AM

EU Brands Microsoft an Abusive Monopolist, Sets Stage for Final Ruling

Windows IT Pro
InstantDoc ID #42040
Rating: (0)

   Representatives of the 15 nations that make up the European Union (EU) met during a closed-door session this morning and unanimously backed a European Commission draft ruling that brands Microsoft a monopolist that illegally abuses its market power on the continent. "The member states have unanimously backed the Commission's draft decision," a Commission spokesperson said.
   The ratification of the draft ruling means that the clock is now ticking for Microsoft. Unless the company can negotiate a last-minute settlement of the 5-year-old antitrust case, the Commission will soon fine Microsoft between $100 million and $1 billion; the company could also face a set of procedural and behavioral remedies that could have sweeping ramifications on the way it does business around the world. The Commission could finalize the draft ruling as soon as next week, after a second meeting at which the EU representatives will determine the size of the fine to levy against Microsoft.
   Most at risk for Microsoft is its sweeping digital-media strategy, which hinges on the inclusion of Windows Media Player (WMP) and other related technologies in the company's dominant Windows products. The Commission is expected to ask Microsoft to sell a version of Windows that doesn't include WMP or to offer competing products, such as Apple Computer's iTunes and RealNetworks' RealPlayer, on the Windows CD-ROM that ships at retail and with new PCs. Microsoft has strongly fought both strategies and suggested instead that PC makers could ship a "must-carry" CD-ROM with their systems, separate from Windows, that includes competitive products. The Commission rejected that proposal last month.
   Microsoft declined to comment about today's decision. But the company has pledged to appeal any verdict that requires it to change the way it develops software, and, if granted, an appeal would last at least 3 years, according to experts in European antitrust law. In the computer industry, 3 years is a long time; the European antitrust case could eventually become as watered down and ineffectual as the US case, which started strong but petered out under the corporation-friendly Bush administration.
   Nevertheless, the Commission has a bargaining chip that wasn't available to US courts. Although Microsoft is expected to appeal any negative verdict, the company isn't automatically entitled to an appeal. The European Court of Justice could reject the appeal because a 3-year delay would make the ruling inconsequential, given the rapidly changing business climate. For the court to reject an appeal, however, the Commission's case has to be strongly researched and decisively written. Predictably, European antitrust regulators have been working toward that goal for the past several months.

Related Content:

ARTICLE TOOLS

Comments
  • jms
    8 years ago
    Apr 21, 2004

    Your missing the point Phil, Antitrust Legistaltion relating to section 2 of the Sherman Act exists to protect the small guy like you and I from large monopolistic giants (like Microsoft)seeking to gain market share through anti-competitve practices. Was Microsoft a monoply? Well yes, did they intend to cut out competion through deception? yes.....I though the whole purose of capitalism was to foster an environment where every American would have the equal opportunity to succeed. Rethink your hasty remarkes buddy...

  • Bruce
    8 years ago
    Mar 19, 2004

    It's not whose player but where you will be downloading the music that you will play on it.

  • Jim Van Every
    8 years ago
    Mar 17, 2004

    Of course Microsoft is a monopoly, how many people use the first and best browser Netscape anymore?, not enough to count.

    Of course we need to have standards and we need to have standard OS's and we need to have an environement where different software products can be developed and integrated, but Microsoft's general attitude in the late 90's was unbelieveably arrogant.
    Which almost bought them the farm, but then they figured out how to pump enough money into the pockets of Senators and Congressmen to change the US governments course.

  • Ray Young
    8 years ago
    Mar 16, 2004

    This is typical of pointless money being spent trying to achieve.....what???? Frankly, if I wanted to have RealPlayer on my system, I can download it when I need to. I like WMP, and it comes already usable out of the box. Not to mention it is easier to troubleshoot than the bloated ADWARE that Real pushes. Oh, and I have no problem with Apple's Quicktime since it has it's uses too. Frankly this is typical of (any?) legal system's heavy handedness without actually checking it's facts. Quicktime plays MOV and MP4 extension movies, along with a number of apple specific extensions. WMP does not. By default, Microsoft has deliberately left the market open for people to download and run (with no penalties either) the Quicktime software. This is not like the IE vs Netscape war, with coding issues at stake and things like that. This is about some lawyer deciding he can make a buck out of it, and sending it up the chain. Typical european stupidity. I suppose they still think they are the centre of the world. Get a Life!

  • Mark McGinty
    8 years ago
    Mar 16, 2004

    C'mon Phil, let's stick with apples-to-apples, product costs are virtually nil for the software business, daries don't even compare. The major cost is R&D, whether it sells 10,000 or 10,000,000, the cost of delivering to the consumer is nearly the same. What would it cost MS to ship an extra CD, a nickel, maybe? A fraction of a percent of retail, certainly. MS is predatory and anti-competitive, they deserve everything they're getting and more. wtg EU, good luck and godspeed.

You must log on before posting a comment.

Are you a new visitor? Register Here

advertisement

advertisement

White Papers

Get your Windows 7 deployment off to the right start by implementing PC lockdown. A locked-down environment is easier and cheaper to support since users are less likely to make unnecessary changes to the core system configuration - read more here!

Essential Guides

Is your iSCSI "lossy"? The reality is that most off-the-shelf Ethernet hardware deployed for iSCSI can lose packets, resulting in slow performance or application downtime. Learn how to assess your current iSCSI infrastructure and engineer an advanced iSCSI SAN infrastructure.

Web Seminars

What's the best way to keep your network safe from malware? In this web seminar, security expert Greg Shields suggests an alternative method to the traditional blacklisting approach that is common with anti-virus and anti-malware solutions.

eLearning Series

We bring the experts direct to you to share their real-world perspective and expertise. During each event, three sessions stream in real time, so you can learn, ask questions, and get solutions.
Upcoming event: Getting the Most with Exchange 2010 with Paul Robichaux

Subscribe to Windows IT Pro!

Windows is a trademark of the Microsoft group of companies. Windows IT Pro is used by Penton Media Inc. under license from owner.