Microsoft files new antitrust documents with EU
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Microsoft Corp.  filed revised  documents with the European Commission on Thursday aimed at  complying with a landmark antitrust decision from 2004, the  European Commission said.
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The European Commission launches new investigations into whether Microsoft breaks competition laws.
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Microsoft Corp. goes into round two Friday of its battle to get the European Union&#39;s sweeping antitrust ruling lifted having told a judge that it had been prepared during settlement talks to share more software
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(InfoWorld) - The European Commission warned Microsoft again Tuesday that planned security features in the upcoming Windows Vista operating system could run afoul of EU antitrust laws, prompting Microsoft to say that an adverse ruling from European regulators could further delay Vista's ship date. In a statement Tuesday, EU Commission spokesman on competition Jonathan Todd said that the Commission believes that diversity and innovation in the security software market could be threatened if Microsoft doesn't allow reputable third-party security vendors to compete on an equal footing for customers. The statements came in response to questions from journalists who had been briefed by Microsoft, Todd told InfoWorld. Microsoft is reaching out to members of the press to express concern about the EC's stance on Vista security and to explain the reasoning that went into the company's decisions to integrate some security functions in the Vista operating system, according to Stephen Toulouse, of Microsoft's Security Technology Unit. "We're doing what everyone asked us to do and making Vista secure," Toulouse told InfoWorld on Tuesday. "We believe we've set the security foundation higher in Vista than in other operating systems and we don't want to lower that," he said. Microsoft is committed to delivering an EC-compliant operating system, and would abide by requests from the European Commission to remove security features if necessary, Toulouse said. Unraveling security features such as the BitLocker drive encryption, Windows Defender and Windows Security Center from Vista at this late date would be a monumental task, however. "I can't even speculate on how we'd deal with a request like that," Toulouse said, although he didn't rule out delays in the global release of Vista. Todd rejected the idea that the EC would give a "green light" to any particular version of Vista, but said that Microsoft would have to produce a product that complies with EU competition rules, or risk an antitrust ruling from the Commission. "We've made it clear to (Microsoft) for some time that it's up to Microsoft to make products that are fully compliant with EU competition rules, particularly in light of the March 2004 ruling on its abuse of its dominant market position," Todd said. NeelieKroes, the European Commission's competition commissioner, wrote to Microsoft CEO Steve Ballmer in March to express concerns about the security features and requesting more information on them, but the company delayed responding to the letter until the end of August, Todd said.Â  Microsoft did a full court press on Tuesday to try to counter the EC's statements about antitrust concerns with Vista's security features, emphasizing the company's work with independent software vendors. Speaking with InfoWorld, Toulouse, until recently program manager for Microsoft's Security Response Center (MSRC), explained the company's reasoning in adopting security features such as Patchguard, a feature on 64-bit versions of Vista that prevents applications from "patching," or modifying the Vista core processing center, or "kernel." Patchguard was necessary to stop unauthorized applications and malicious programs from modifying the Vista kernel to take control of the operating system. Legitimate third party products, however, such as behavioral detection products, also need access to the kernel. Symantec Corp. executives have complained that Microsoft is using its dominance of the operating system market and hard line stance on kernel patching to stifle competition, but Microsoft allows third parties to extend the Vista kernel using signed, kernel-mode drivers, Toulouse said. Microsoft's security products, such as Windows Live OneCare and Forefront, don't get an inside track to Vista features, Toulouse said. "We play by the same rules with our own products," Toulouse said. "Nobody patches the kernel." Toulouse also downplayed the impact of Patchguard, saying that adoption of 64 bit Vista would be slow, given that fewer applications have been written to run on it, and the 32-bit version of Vista runs on new, 64-bit platforms. On other security features, such as the Windows Security Center user interface, Microsoft allows ISVs to use the features or ignore them. The company has also made it easy for competitors to turn off default security features like the Windows Defender anti-spyware product and Vista desktop firewall silently during installation, Toulouse said.Â  Microsoft has made great efforts to give third party vendors such as Symantec access to Vista, such as giving Symantec employees office space at the company's Redmond, Washington, headquarters and access to Vista source code and builds, Toulouse said. The EC isn't opposed to Microsoft improving the security of Vista, but believes that there needs to be diversity in the security market to stimulate innovation, Todd said. The EC is still evaluating the information Microsoft sent in August on the Vista security features and hasn't decided what additional guidance it will give Microsoft. There were similarities between the EC's position on Vista's integrated security features and the Commission's ruling on Microsoft's bundling of the Windows Media Player, Todd said. That dispute resulted in a â¬497 million fine against Microsoft in March 2004 for anti-competitive practices. Todd acknowledged, however, that security features also had a unique status. "There's an extra dimension with security products. If I have a computer without a media player, it's not the end of the world. But a computer without security countermeasures is in deep trouble," Todd said. "Clearly we don't expect Microsoft to sell software that would be vulnerable to security problems," Todd said.
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Microsoft Corp. has made substantial concessions to the European Commission, finally bringing the company into compliance with a 2004 antitrust ruling, the Commission said Monday.
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Microsoft is looking for additional European-based firms to file challenges against the European Union&#39;s US$600 million ruling against the software giant.
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As part of a European antitrust settlement, Microsoft will supply protocol documentation to developers of the open-source software.
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European antitrust regulators said Monday they have extended their review of a deal between Microsoft Corp. and Time Warner Inc. to make anti-piracy software together.
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The European Commission (EC) has launched another investigation into Microsoft - this time over plans to take over an anti-piracy software supplier.
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The European Union levied a second massive fine on Microsoft and threatened greater penalties in the future unless the world&#039;s largest software company obeys a 2004 antitrust order to share technical details of its Windows operating system with rivals.
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(InfoWorld) - No one used the 'L' word, but both sides in the Microsoft Corp. antitrust battle in Europe accused each other of lying about basic facts surrounding the latest twist in the long-running saga that emerged Thursday. The European Commission sent Microsoft a so-called statement of objections Thursday accusing the software vendor of failing to provide interoperability information on "reasonable and non-discriminatory terms." This was a requirement laid out in the landmark 2004 antitrust ruling against the company. In its statement the Commission said the software giant proposes overcharging for vital interoperability information needed by software makers to allow their products to work properly with the Windows operating system. It dismissed almost all of the information Microsoft proposed revealing as not innovative and therefore not worth the price the company wants to charge to license it. Competition commissioner Neelie Kroes said Microsoft had agreed that the innovativeness of the information should be the main criterion when setting the price, but in a conference call with journalists later Thursday, Microsoft top lawyer Brad Smith denied his company had agreed innovativeness should be the main criterion. "We told the Commission we believe innovation is one of three main elements. We don't have the same interpretation of what had been established [between Microsoft and the Commission]," he said. Then ECIS, the European Committee for Interoperable Systems, accused Microsoft of misleading journalists by citing a study by accountants Price Waterhouse Coopers (PWC), which, according to the software company, shows that the prices Microsoft wants to charge for licenses to the interoperability information are 30 percent below normal market rates. "It is an outrageous comparison," said Thomas Vinje, ECIS's legal advisor and a partner in the Brussels office of law firm Clifford Chance. "The PWC study compares the prices Microsoft wants to charge with the market price for much more valuable information such as software code, documentation, and full redistribution rights," he said. "What people will get with Microsoft's interoperability information is a lot less valuable. To compare it with the sort of information in the PWC study is like comparing apples with... some withered fruit," he added. The actual prices Microsoft wants to charge for licensing out the interoperability information are too complicated to share with journalists, Microsoft spokesman Tom Brookes said. He warned inquisitive journalists that there is no simple price list. The Commission believes that if all software vendors bought licenses it would amount to around 35 percent of the net profit of the industry. Microsoft's Smith dismissed this, saying: "I don't think you can conclude that." He said that if all vendors bought the licenses the total revenue Microsoft would earn would total around US$30 million -- a tiny fraction of annual software industry profits. "That $30 million figure bears no resemblance to reality, and if Microsoft can't explain how they reached this figure it has absolutely no value," Vinje said. Microsoft has four weeks to respond toÂ the latest statement of objections, after which it faces daily fines of up to â¬3 million (US$3.9 million). In the meantime, the Commission is expected to conclude its assessment of the substance of the interoperability information Microsoft submitted. It doesn't have to be innovative. In fact Microsoft's rivals, including ECIS, argue that much of the information competitors need in order to build their software so that it interoperates with the ubiquitous Windows OS on PCs is quite straightforward. Nevertheless, if it isn't revealed then rivals are stuck, Vinje said. Commission spokesman Jonathan Todd told journalists Thursday that Microsoft's continued failure to comply with the antitrust ruling is unprecedented. "In the 50 years of European antitrust policy, it's the first time we've been confronted with a company that has failed to comply with an antitrust decision," he said. "You have to look at their attitude faced with other antitrust authorities in other jurisdictions. This is a company that apparently does not like to have to conform with antitrust decisions," Todd added.
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The European Commission turned up the  pressure on Microsoft  on Thursday, warning the U.S.  software giant of new fines and accusing it of serial defiance  of an antitrust ruling made nearly three years ago.
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The European Commission, fresh from a  major court victory over Microsoft, launched new antitrust  investigations into the software giant on Monday on suspicion  it abused its market dominance to favor its Web browser and  Office product.
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The Department of Justice and Microsoft Corp. filed court documents to extend the antitrust judgment against the company for at least two years.
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The European Commission launches new investigations into whether Microsoft breaks anti-competition laws.
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InfoWorld - The European Commission has again criticized Microsoft&#39;s response to a 2004 antitrust ruling, opening up the possibility of further fines for the company. The regulator said that the software giant proposes overcharging for vital interoperability information needed by rival software makers to allow their products work properly with the Windows operating system.
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Microsoft agrees to comply with the European Commission's anti-monopoly ruling against it.