EU Accuses Microsoft of Paternal View
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Microsoft Corp. said Friday that small companies and their customers would suffer most if it is forced to remove its digital media software from Windows, while the European Union accused it of being "paternalistic" in trying to decide what's best for everyone.
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The European Commission has begun two new antitrust investigations of Microsoft, including one probe into Microsoft's tactic of bundling software products with its Windows OS.
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Software giant Microsoft Corp. will for the first time be forced by antitrust regulators to change how it designs and sells its widely used Windows operating system, after a European Union
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Bruxelles, 27 set. (Adnkronos) &#39;&#39;Microsoft e&#39; pronta a soddisfare le richieste Ue ea immettere sul mercato una nuova versione di Microsoft nel caso in cui la Corte di giustizia lo dovesse ordinare&#39;&#39;. Lo ha
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(InfoWorld) - European Commissioner for competition Neelie Kroes Tuesday denied she is conducting a personal vendetta against Microsoft. Her comments came in response to what she called âa coordinated campaignâ by Microsoft against Europeâs top antitrust regulator. âFar from pursuing a vendetta against Microsoft, the Commissionâs actions are guided by the desire to create the most innovation-friendly business climate in Europe to the ultimate benefit of European consumers,â Kroes wrote in a letter in Tuesdayâs Financial Times. Earlier this month Microsoft warned that ongoing antitrust problems in Europe mayÂ delay the European launch of Windows Vista, the new version of the companyâs flagship operating system. It accused the Commission of not giving it sufficiently clear guidance on whether Vista would pass muster under European antitrust law. It also presented research it had commissioned that showed that hundreds of thousands ofÂ jobs in the European IT industry were at stakeÂ if Vistaâs launch in the region was delayed. âThere appears to be a co-ordinated campaign to portray the Commission in a negative light,â Kroes wrote. âFor example, I have seen it suggested that the Commission may seek toÂ prevent Microsoft from improving the securityÂ of its operating system. This is categorically not the case,â she wrote. The Commission has been giving feedback to Microsoft since the spring about how to avoid similar antitrust problems with Vista that it experienced with its predecessor, Windows XP. The Commission warned Microsoft that its plan to equip Vista with its own security software may amount to bundling and it urged the software company not to shut out rivals in the security software market. In 2004 the Commission found Microsoft guilty of shutting out rivals in the media player software market by bundling its Media Player with Windows. The company was also guilty of abusing its position in the workgroup server OS market. Microsoft was fined almost â¬500 million ($633 million) and was required to release a version of Windows without Media Player. In addition, Microsoft needed to make its server products better interoperate with competitors' offerings. Earlier this year it wasÂ fined an additional â¬280.5 millionÂ for failing to reveal details about the workings of Windows, as it was ordered to in the 2004 ruling. Microsoft has now submitted the information, which the Commission believes is necessary for restoring competition in the market for server operating systems. The Commission will decide in the coming months whether the information is sufficient. Meanwhile, the European Court of First Instance in Luxembourg is considering an appeal of the 2004 antitrust ruling lodged by Microsoft. The Court follows no strict timeframe. Most observers expect a ruling by next summer.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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(InfoWorld) - Four European Parliament members warned the European Commission that its actions toward Microsoft could endanger the competitiveness of European businesses by delaying the release of Vista, Microsoft's next operating system. In a strongly worded letter submitted Thursday to Competition Commissioner Neelie Kroes, the legislators said Microsoft regards the E.U.'s regulatory actions as a "risk factor." Microsoft used the terminology in its annual report filed Aug. 25 with the U.S. Securities and Exchange Commission (SEC). "This effectively means that the Commission's actions are endangering the ability of European business to compete globally," the legislators wrote. The letter is signed by U.K. representatives Chris Heaton-Harris, Sharon Bowles and Peter Skinner, plus Michal Kaminski of Poland. Microsoft wrote in the SEC filing that its ongoing appeal of European Commission's March 2004 antitrust decision means there's uncertainty over the legal principles regarding product design in the European market. "These uncertainties could ... delay release dates for Windows or other products," the SEC filing read. Microsoft has provided copies of Vista to the Commission along with technical information, said spokesman Tom Brookes. The Commission, he said, has raised concerns regarding complaints by competitors. In March, the Commission sent a letter to Microsoft Chief Executive Officer Steve Ballmer, saying it was concerned about certain functions in Vista and how compatible the OS would be with products from other software companies. European Commission representatives were not immediately available for comment regarding Thursday's letter. Brookes said Microsoft was unaware of the letter until this morning. Two of the legislators said their letter is based on information contained in the company's SEC filing. Heaton-Harris referred questions to Microsoft, regarding why the company thought the E.U. might cause a delay Vista's shipping date. Microsoft has said Vista will be ready for corporate customers in November and consumers in January. Bowles said she has participated in informal sessions where Commission members have acknowledged they are watching Microsoft's development of Vista closely. She said she had no specific information on what the Commission is currently doing, as few details are publicly released. However, the Commission's actions have prompted concern among small to medium-size businesses in Europe, worried that the E.U. could potentially delay Vista's release, putting them at a competitive disadvantage with the rest of the world, Bowles said. "That climate of uncertainty caused through competition policy and actions already taken ... are meaning that Europe is being deprived," Bowles said. Europe is in the middle of a 10-year plan, called the Lisbon Agenda, to increase the continent's competitiveness in technology. The legislators wrote that they are concerned the Commission's actions toward Microsoft are undermining Europe's moves to become a knowledge-driven economy. Microsoft and the Commission have locked horns over how the company is complying with the March 2004 antitrust decision. TheÂ Commission fined MicrosoftÂ â¬280.5 million ($357 million at the time) in July for failing to provide technical documentation for certain protocols used by its server products. The Commission required disclosure of the protocols to allow competitors to develop compatible products.Â Microsoft is appealing. Microsoft is also appealing the entire March 2004 decision, in which it was fined â¬497 million ($613 million at the time), before the European Court of First Instance in Luxembourg.
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The European Commission has again criticized Microsoft'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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European Union Competition Commissioner Neelie Kroes has slammed comments from the U.S. Department of Justice about Monday's European courtÂ ruling on an antitrust judgment against Microsoft.
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(InfoWorld) - A pro-business think tank in Europe has recommended unbundling Microsoft Corp.'s Windows operating system from sales of new PCs in order to give customers more choice when buying a new computer. A report from the Globalisation Institute in Brussels urges the European Commission to require that PCs and operating systems be sold separately in Europe to break Microsoft's monopoly in the desktop OS market. "Microsoft's dominant position is not in the public interest. It limits the market and has slowed technical development to the prejudice of consumers," said the report . The report is gaining attention partly because the Globalisation Institute usually advocates a hands-off approach to business regulation. It researches and develops policy options that are sometimes championed by politicians. Its report comes one week afterÂ Europe's second-highest court turned down Microsoft's appeal of the European Commission's 2004 antitrust ruling against it, which fined MicrosoftÂ around $600 million for abusing its OS monopoly. That investigation focused on how Microsoft bundles its Media Player software with Windows, which the Commission said harmed competitors such as RealNetworks Inc. It also required Microsoft to publish communications protocols so that its rivals can make their server software work better with Windows clients. The Globalization Institute said the Commission should take its thinking about Microsoft's OS to its "logical conclusion" and force PC makers to unbundle Windows from PCs as well. The report does not mentionÂ recent moves by vendors such as Dell Inc., and Hewlett-Packard Co.Â in Australia, to offer Linux as an option with PCs sold online. Globalisation Institute President Alex Singleton called those offers "a token gesture." "The fact is, when you go into a computer shop, the majority of consumers are not faced with a choice. Just because on the margins you are offered something else, I don't think those choices mean there is real competition." In addition, the report argued, offering a choice of OS is not a practical option for retail stores, where floor space is limited. Therefore PCs should be sold separately from the OS. "We do not believe this would add complexity for consumers. Consumers would simply be asked to insert an operating system DVD when they first turn on a new computer, which would then automatically configure itself," the report says. Such competition exists in hardware, the report argues, with microprocessors and hard drives available from a choice of vendors. But when consumers walk into a store they generally have only one choice for an OS: Windows. "The result is that consumers who, given the choice, would opt for a cheaper operating system, find themselves automatically buying the market leader." The group sent its report to the office of the European Commissioner for Competition, Neelie Kroes, Singleton said. Kroes led the Commission's antitrust case against Microsoft and has called the company's share of the desktop OS market "unacceptable." Microsoft representatives did not immediately respond to requests for comment on the report. Â
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The war of words between Microsoft and the EU continued Tuesday, with the European Commission warning that Windows Vista's built-in security features should not shut third party vendors out of the market.
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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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European Union officials warned Microsoft Corp. on Tuesday not to shut out rivals in the security software market as the company plans to launch its Windows Vista operating system with built-in protection from hackers and malicious programs.
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Opinion: Unbundling integrated pieces of Windows just might be the bitter pill that Microsoft needs. There&#39;s no Christmas present that Microsoft officials want more than the European Union&#39;s remedies to be
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Microsoft (Nasdaq: MSFT) says it will obey any directives issued by the European Union  over the modification of Windows. European regulators have ordered the  world's biggest software maker to offer a version of its operating  system without its media player.
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BRUSSELSâRegulators are set to argue that the European Union needs to take a tougher stand against Microsoft Corp. because its antitrust rules are different from those that allowed the company to avoid making
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The European Union's top competition  regulator clashed with Microsoft  on Tuesday over  security upgrades in the U.S. software giant's new Windows  Vista operating system in a re-run of past antitrust battles.
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Microsoft (Nasdaq: MSFT) chairman Bill Gates is visiting the headquarters of the European Union in Brussels, Belgium, but has not scheduled a meeting with the head of the antitrust office, which has imposed measures on the company.