EC promises Microsoft anti-trust fight will continue
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The European Commission has said it will pursue its anti-trust case against Microsoft despite the loss of two of the Commission&#39;s principal supporters from the IT industry.
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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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THE EUROPEAN UNION said that despite the fact that two of its key witnesses in its anti trust dispute against Microsoft have pulled out, it still has enough evidence to bring the monopolist to book.
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THE HEAD LAWYER at Microsoft has said that if the European Union insists it tweaks Windows to comply with its anti-trust ruling, it will be able to comply.
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(InfoWorld) - As judgment day in the nine-year-long antitrust battle between Microsoft and the European Commission draws near, neither side in the protracted dispute knows for sure how it will react to the news on the day. Although the date of the ruling by the European Court of First Instance has been public since July, the European commissioner in charge of competition, Neelie Kroes, still hasn't decided whether she will hold a press conference on Monday. Meanwhile, Tom Brookes, a Microsoft spokesman, said the company is waiting until Monday morning before finalizing plans for addressing the rank's journalists from around the world gathering in Luxembourg, the court's location, and Brussels and who are eager to place "winner" and "loser" tags on the adversaries. "How much can you prepare for an outcome you don't know?" Brookes said. "Clearly Mrs. Kroes isn't going to give a press conference if the Commission loses outright," said Commission spokesman Jonathan Todd. Microsoft's appeal against the Commission's 2004 antitrust ruling is the biggest event in the working lives of everyone directly involved. They know that Monday's outcome will influence the software industry's future and will be a reference in all future European antitrust cases, especially ones in the fast-changing world of IT. From Microsoft's perspective, it will determine "under what circumstances market-leading companies can improve their products for consumers," said Erich Andersen, vice president and associate general counsel for Microsoft in Europe, in a statement. "The issue here is whether Microsoft should be able to regulate the market from a superdominant position, or whether the market should determine which products should gain access to consumers," countered Todd in a telephone interview. Both sides also know that how the outcome is perceived in the press is almost as important as the actual outcome, which is likely to be hundreds of pages in length, devilishly nuanced, and highly complex. Most people expect several versions of the court ruling to appear in the media on Monday. Initial reports will emerge shortly after the ruling is made public at 9:30 a.m. local time, and will probably focus on whether the Commission has to repay any or all of the â¬497 million ($685 million) fine it imposed on Microsoft in 2004. Repaying the fine will be seen as evidence that Microsoft's appeal against the 2004 Commission ruling was successful. Letting the fine stand will be viewed as a Microsoft loss. But what happens to the fine is the least important aspect of Monday's ruling, according to Thomas Vinje, a partner in the law firm Clifford Chance, who heads the legal team of the European Committee for Interoperable Systems (ECIS), a Commission ally. "It's the least relevant yardstick," Vinje said. "Far more important is how the judges assess individual facts and points of law because this will determine what legal precedents can be gleaned from this case." A senior lawyer on Microsoft's side agreed. "If the court reduces the fine on Microsoft, saying that the anticompetitive behavior isn't so serious, but upholds the Commission's broad argument, then a lawyer in a year's time dealing with a different antitrust case will be more interested in what the court specifically said than in whether the fine was reduced or not," he said, asking not to be named. Journalists will largely be dependent on lawyers' interpretations of the document, which won't come out until some time after the initial ruling. The story may well change dramatically during the day, once details of the ruling emerge, possibly even reversing a superficial initial assessment of who won or lost. The finest legal minds involved on both sides will pore over the document looking for ways to claim victory and to shape perceptions of the ruling. Microsoft appealed both strands in the Commission's landmark 2004 ruling, which concluded that Microsoft was abusing the dominant position of its Windows operating system in order to muscle in on other sectors of the software market. The Commission concluded that Microsoft was competing unfairly against other vendors by bundling its Media Player multimedia software in Windows. The Commission also ruled that Microsoft monopolized the market for low-end server operating systems by failing to reveal interoperability information to rivals. Last April the court held a three-day hearing during which the Commission and Microsoft, together with their software industry allies, tried to convince the judges of their arguments. Observers foresee four possible outcomes on Monday, the first two clear-cut but unlikely, the other two mixed and therefore more probable. The court could side with the Commission on both sides of the case. It might deem Microsoft an obstacle to innovation in the software industry and order the immediate breakup of the company, effectively appropriating the Windows operating system and making it a public utility. In the second clear-cut scenario, the court sides with Microsoft on both counts and declares that the rapidly changing IT industry is defined by a string of monopolies and that one monopoly is inevitably overtaken by another in time. More likely, the court may side with the Commission on the interoperability side but uphold Microsoft's appeal against the bundling ruling. Microsoft may be ordered to release all interoperability information to rivals immediately. This result would open up Office-related markets to open source software rivals. However, Microsoft would no longer need to sell a version of Windows without Media Player, and it would most probably bundle more and more features onto Windows in the future, to the likely detriment of any halfway successful innovation from a rival, such as Google. Alternatively, Microsoft may lose the bundling argument but win on the interoperability side. The Court may order Microsoft to set up a separate company to sell a completely unbundled version of Windows. This entity would be free to compete with the fully bundled version and strike partnerships with other software developers. If the third scenario prevails, then Microsoft could face a string of lawsuits in Europe. The Commission is already examining an ECIS complaint that claims Microsoft has stifled competition in the market for office tools software by failing to allow rival software from interoperating properly with Microsoft Office. "Victory on the interoperability side of the case on Monday would put wind in our sails," said the ECIS's Vinje. But a loss would put a swift end to a new attack, and any others that might lie in waiting for Monday's outcome. "Monday's ruling will have a huge effect on how the ECIS complaint is dealt with," Todd said.
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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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Microsoft Corp has submitted documents  required by the European Commission in an effort to avoid  further fines for breaching an antitrust ruling, the European  Union regulator said on Monday.
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Microsoft Corp.  is on track to  resolve this month its fight with European Union regulators  over its compliance with a 2004 antitrust ruling, the software  company&#039;s general counsel said on Wednesday.
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US software giant Microsoft said it would not appeal against a European Union court order that upheld EU anti-trust sanctions, but remained confident it would eventually win the case.
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Analysis No delay in EC anti-trust compliance
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BRUSSELS, Belgium -- The European Union escalated its trans-Atlantic fight with Microsoft Corp. yesterday , threatening huge new fines against the software maker over claims it is asking rivals to pay too much for information that would help their servers work with Windows.
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Key dates in the European Union's antitrust proceedings against Microsoft Corp.:
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The European Union judge deciding whether Microsoft will have to reform its business practices will continue to take into account arguments made by Novell and a prominent
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The European Union&#39;s executive arm ruled out fresh negotiations with Microsoft to settle an anti-trust case after an EU court upheld its sanctions against the software giant.
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Redmond agrees to adhere to the European Commission's antitrust ruling, a ruling it has resisted at cost of hundreds of millions, and will now open up its Windows operating system to allow rivals to compete.
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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 world&#39;s software giant Microsoft Corp. said it would comply with the European Commission (EC) &#39;s orders if it fails this week to persuade the European Court of Justice to suspend the EC&#39;s decision.