EU accuses Microsoft of paternalistic view
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: Microsoft Corp. today said 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
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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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(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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It concerns the European Commission ruling against Microsoft in March this year. Brussels found Microsoft guilty of breaking European Union antitrust law by abusing a dominant position in the market for PC operating systems.
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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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A top European Union judge  challenged the EU executive's reasoning in its antitrust court  battle with Microsoft Corp. on Friday, questioning why it  opposed the U.S. software giant's setting industry standards.
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(InfoWorld) - The European Commission has again criticized Microsoft's response to a 2004 antitrust ruling, opening up the possibility of further fines for the company. In March 2004,Â the Commission fined MicrosoftÂ and ordered it to provide its competitors with information allowing them to develop workgroup server software interoperable Windows desktop operating system. It thenÂ fined the company againÂ last July for failing to provide that information on time. The Commission has sent Microsoft another statement of objections, saying it considers the interoperability information Microsoft has offered is still incomplete, said Jonathan Todd, Commission spokesman on competition issues. In addition, Microsoft is charging its competitors too much for that information: it does not justify the price tag put on it because it is not innovative, he said. Microsoft has four weeks in which to respond to the statement of objections, after which it may face further daily fines for noncompliance with the antitrust ruling. Even as Microsoft and the Commission dispute whether Microsoft is in compliance with the ruling, another court is considering whether Microsoft should have to comply at all. The European Court of First Instance, in Luxembourg, is still considering Microsoft's appeal against the Commission's March 2004 ruling that Microsoft abused its monopoly in desktop operating systems to exploit markets for workgroup server and media player software. At that time, the Commission ordered Microsoft to pay a fine of â¬497 million (then around $600 million), ship a version of Windows without media player software, and publish the server software interoperability information disputed in today's announcement. (Peter Sayer, in Paris, contributed to this report.)
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The European Union threatened Microsoft Corp. with new fines on Thursday, claiming the software giant had failed to live up to legal promises to provide competitors with updated, complete and reasonably priced information on work group servers.
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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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A European Union (EU) court has ordered Microsoft Corp to change its business practices and immediately market a stripped-down version of Windows.
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BRUSSELS -- The European Commission has issued a formal set of objections to Microsoft Corp. and Time Warner Inc. taking control of ContentGuard Holdings Inc., a digital rights management (DRM) company, according to sources familiar with the case.
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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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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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A U.S. official's criticism of a European Union court ruling dismissing Microsoft's monopoly abuse appeal was "totally unacceptable," EU antitrust chief Neelie Kroes said Wednesday.
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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 opened a new  antitrust probe against Microsoft  on Monday into  whether it unfairly tied its Web browser to the Windows  operating system and made it harder for rival software to work  with Windows.
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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.