EU May Combine Microsoft Antitrust Probes

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Fair Use Act usage only: for research or educational purposes http://quote.bloomberg.com/fgcgi.cgi?ptitle=Technology%20News&s1=blk&tp=ad_topright_tech&T=markets_fgcgi_content99.ht&s2=blk&bt=ad_bottom_tech&bt2=ad_position1_technology&middle=ad_frame2_technology&s=AOkIsihYmRVUgTWF5

this will put more of a squeeze on M$FT

EU May Combine Microsoft Antitrust Probes, Monti Says (Update2)

12/21 11:15
EU May Combine Microsoft Antitrust Probes, Monti Says (Update2)

By Poilin Breathnach and Adrian Cox

Brussels, Dec. 21 (Bloomberg) -- The European Commission may merge two antitrust investigations of Microsoft Corp.'s business practices that could lead to fines on the world's No. 1 software maker, Competition Commissioner Mario Monti said.

Combining the probes could enable the commission to establish a pattern of anti-competitive behavior, antitrust lawyers said, but at the price of slowing the inquiry. Companies found guilty of antitrust violations in the 15-nation European Union face fines as high as 10 percent of sales.

The first investigation began in 1998 after Sun Microsystems Inc. alleged that Microsoft was abusing its position in the personal computer operating-system market and providing incomplete information about its software to makers of computer servers. A separate probe begun in February targets Microsoft's latest operating system, Windows 2000.

Bundling the two cases ``is one of the aspects under consideration in the work being conducted by my services at this time,'' Monti told a news conference.

Microsoft filed a response of more than 9,000 pages to the first investigation on Nov. 17. Although Microsoft could be penalized as much as 10 percent of its sales, or $2.3 billion, the largest fine the EU has imposed for antitrust violations is $100 million.

Bundling Could Buy Time

Bundling the cases is unlikely to significantly help or hinder Microsoft, though it may give the company more scope to slow the case down for procedural reasons, lawyers said.

``Trying to combine the two cases is likely to complicate matters administratively without any corresponding benefit,'' said Stephen Kinsella, an antitrust lawyer at Herbert Smith. ``If I were the prosecutor, I would choose my best case and devote all my resources to prosecuting that one as quickly as possible.''

The commission said in August its investigation of Sun's complaints showed Microsoft breached antitrust rules by engaging in discriminatory licensing and refusing to supply essential information on the Windows operating system to server makers.

Microsoft, with a 95 percent share of the PC operating system market, must disclose its interfaces, the function that allows computers and servers to communicate, the commission said.

Given Microsoft's ``practically undisputed market dominance,'' its rivals need access to interfaces to develop server systems that can relay information to PCs that run Windows, the commission said. Withholding such information would force computer networks to use Windows server software to be able to exchange information freely with other networks, the commission said in August.

The commission found Microsoft ``gave information only on a partial and discriminatory basis to some of its competitors'' and refused to give it to others, like Sun. The commission, the EU's executive arm, began examining Microsoft in December 1998.

-- (perry@ofuzzy1.com), December 21, 2000


Moderation questions? read the FAQ