Update: EU slams Microsoft interoperability efforts again
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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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In Berlin on Tuesday, Microsoft unveiled a product package aimed at local and regional e-government initiatives, in the midst of growing government opposition in Europe to proprietary software.Microsoft&#39;s Citizen Service Platform includes applications and templates designed for local and regional governments primarily in Europe and the United States. It is built on products, including SharePoint, Office Live, and Windows Server.While Microsoft has been selling software to the public sector for years, it has recently begun focusing on local governments after discovering that many people interact with their local governments more often than the federal government, said Ralph Young, vice president of Microsoft&#39;s Worldwide Public Sector group.Europe alone has more than 80,000 local and regional governments, Young said.Governments can use the Citizen Service Platform to create portals, manage documents, deploy alert systems in the case of emergencies, and create and manage citizen information databases that can be shared among different agencies.Microsoft is introducing the product as it faces&#160;mounting opposition Europe. Some governments there are migrating to open source products as a way to avoid being locked into a single vendor of proprietary software.Others, such as the Netherlands, are taking a more extreme route. Late last year, the Dutch parliament mandated that government organizations choose open source over proprietary software if a viable product is available. Agencies must also use open standards. The national government must comply with the new rules by May, with local governments following by the end of this year.Young was unfazed by the mandate. &quot;We have many opportunities in the Netherlands to work with local and regional governments,&quot; he said. &quot;We don&#39;t see any federal mandates having real impact locally because of local jurisdictions&#39; ability to make decisions in their best interest in terms of how to better serve citizens.&quot;Microsoft could be counting on local governments having autonomy from such federal mandates, said Mark Anderson, a consultant and founder of the Strategic News Service. &quot;There are a lot of times when a government will posture, and it doesn&#39;t really intend that posture to be carried through the rest of the country,&quot; he said.Still, some European government agencies may be predisposed to choose software other than Microsoft&#39;s, more so since the software giant began pushing its Open XML document format there, Anderson said. Microsoft is in the process of&#160;attempting to have Open XML be accepted as a standard&#160;by the International Organization for Standardization. Open XML competes with the Open Document Format promoted by IBM. Critics of Open XML accused Microsoft of stacking votes in the standardization process, souring some in Europe on Microsoft even further.Microsoft thinks that cost will determine decisions for many local governments. &quot;It&#39;s much less a religious discussion about open source and commercial software as it is about what are the solutions available that governments can see value from,&quot; said Young. &quot;Local governments are empowered to make decisions and if they say &#39;This is the best value for the dollar I spend over the life of a service capability, that will govern my decision-making process.&#39;&quot;
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Changes Microsoft will make to its business practices to comply with the 2004 European Commission antitrust ruling will &quot;profoundly affect the software industry,&quot; European competition commissioner Neelie Kroes said Monday.For three and a half years Microsoft dragged its feet and used every legal avenue available to delay complying with the&#160;2004 antitrust ruling. But after its&#160;appeal of the ruling to Europe&#39;s second highest court failed&#160;last month, the company decided to cooperate.&quot;At the time the Court of First Instance issued its judgment in September, Microsoft committed to taking any further steps necessary to achieve full compliance with the Commission&#39;s decision. We have undertaken a constructive discussion with the Commission and have now&#160;agreed on those additional steps,&quot; Microsoft said in a statement Monday.Open-source software developers will be given access to the interoperability protocols inside Windows that Microsoft was ordered to reveal. Until recently the software giant had steadfastly refused to allow that. The protocols will be available for a fraction of the license fee Microsoft intended to charge and they will be valid worldwide, the Commission said Monday.These concessions were agreed to between Microsoft CEO Steve Ballmer and Kroes in a recent meeting at a restaurant near Kroes&#39; home town of Rotterdam in the Netherlands. The final details were agreed to in a transatlantic phone call Monday morning Brussels time, Sunday evening in Redmond, Washington, from where Ballmer made the call.Kroes was visibly delighted at Microsoft&#39;s decision to respect the Commission&#39;s authority. &quot;I hope we can close this dark chapter in our relationship,&quot; she told journalists at a news conference at the Commission&#39;s headquarters in Brussels.However, she also made clear that while Microsoft&#39;s latest efforts substantially respect its obligations under the 2004 ruling, other points of conflict could occur.&quot;New issues may arise,&quot; she warned, pointing to &quot;a couple of other cases on our desks&quot; concerning the company.One of those cases was sparked by a complaint from the trade group ECIS (European Committee for Interoperable Systems), whose members include IBM, Oracle, and Red Hat. The Commission declined to comment on other cases.Besides complying with the 2004 ruling, Microsoft also said Monday that it wouldn&#39;t appeal last month&#39;s defeat at the Court of First Instance, ending the legal uncertainty that continued to face software and hardware developers long after the 2004 ruling.While doubts remained about the validity of the Commission&#39;s 2004 antitrust ruling, the computer industry was unable to plan future product development with full confidence. Now they know, for example, that open-source software developers will be able to compete for a share of the market for workgroup server operating systems -- the computers that run networks of PCs.Microsoft has a 95 percent market share on the desktop operating system market and over 70 percent of the market for workgroup server operating systems. Open-source workgroup server products are virtually the only alternative for users and are thus the main surviving competitive constraint on Microsoft, the Commission said.&quot;More competition on this market should offer consumers more innovative products, with improved functionality at better prices. For that reason, it is vital to the effectiveness of the 2004 decision that Microsoft also complies by giving access to open-source developers access to the interoperability information,&quot; the Commission said.While failing up to now to provide all the information demanded by the Commission, Microsoft has been providing two separate licensing arrangements to companies. The first is a &quot;No Patent Agreement&quot; allowing licensees access to the interoperability information, but without taking a license for patents that Microsoft claims is necessary, a contention disputed by some third parties.Microsoft Monday confirmed it has made three changes to this license. Besides granting access to it to open-source developers, it has reduced royalty fees to a single flat rate payment of &#8364;10,000 ($14,308, based on Monday&#39;s exchange rate). It has also agreed to allow licensees to dispute the accuracy or completeness of the interoperability information and seek damages in private enforcement claims at the High Court in London.Kroes said the London court is the best qualified court in Europe to handle such disputes.The second type of license offered by Microsoft includes rights to use patent-protected interoperability information. Microsoft was demanding payment for the patent-protected information amounting to 5.95 percent of the licensee&#39;s revenues from the product that benefited from the information. Microsoft agreed Monday to slash this to 0.4 percent of revenue, the Commission said.Of the 154 protocols being licensed, only 31 are patent-protected. Licensees are free to choose if they need to take out a patent license or if they can work around the patents, Kroes said.While Monday&#39;s agreement between the Commission and Microsoft draws a line through most of the outstanding legal issues they have fought over for the past nine years, the Commission still hasn&#39;t decided how much to fine the company for failing to comply up to now.Two years ago the regulator fined Microsoft &#8364;280.5 million for failing to provide adequate interoperability information, and imposed further daily fines. The additional fines will add up to tens, possibly hundreds, of millions of euros in additional fines. The Commission will announce the full tally of fines before the end of this year, spokesman Jonathan Todd said.Another outstanding question is whether Microsoft will withdraw an appeal of the ruling that imposed the noncompliance fine. That appeal was lodged with the Court of First Instance in 2005. Microsoft spokesman Tom Brookes said he was unaware of any decision to withdraw the appeal.In 2004 the Commission, Europe&#39;s top antitrust regulator, fined Microsoft &#8364;497 million for abusing the dominant power of its Windows operating system. It ordered the company to reveal secret protocols inside Windows to rival makers of workgroup server operating systems to allow them to build systems that worked properly with PCs running Windows.It also ordered the company to offer consumers a second version of Windows that has the media player stripped out, because the Commission concluded that by bundling Microsoft&#39;s own audio and video playing program into the operating system, it was putting rival media players at an unfair disadvantage.
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Like many, I was pretty shocked by the recent Microsoft-EU deal to settle the long-running investigation into interoperability issues.  This was not so much because of the way Microsoft has used every kind of delaying tactic it could before eventually agreeing (for the nth time) to try harder in the future.  My real dismay was provoked by the gap between appearance and reality â a chasm that I think bodes ill for the future of open source. read more
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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 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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At a seemingly routine antitrust compliance hearing in Washington, Microsoft was criticized sharply by government attorneys for a delay in the company's effort to create technical documentation for its Windows interoperability protocols.
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LUXEMBOURG  - Microsoft Corp. told a European Union court Thursday that it would suffer irreparable harm if forced to reveal more of its software code to rivals, while the EU said such information was "indispensable" to keep competitors alive.
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Stop me if you've heard this one before The European Commission is launching two formal investigations into Microsoft.â¦
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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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You will comply The European Commission has warned Microsoft it could face further penalties over what it calls "unreasonable pricing" of interoperability information.â¦
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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 &quot;paternalistic
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Microsoft is locked in a war of words with Brussels about the launch of its new Windows Vista operating system.
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Blog: As an industry we are terrible at working on interoperability.  The open source world should be the one to fix this.
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BRUSSELS, Belgium -- The European Union threatened Microsoft Corp. on Thursday with fines as high as $4 million a day, claiming the software company was still not offering a fair deal to rivals seeking to make their products more compatible with Windows.
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They are asking the European Union Council to reject this proposal. They claim that software patent directive would be harmful to the European economy.
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Microsoft asked a European Union  judge Thursday to freeze a European Commission order forcing it  to share technology with competitors, but a rival said the  software giant used to provide such information freely.