Microsoft in Trouble with the EU

Microsoft could face more fines, warns EU
Dawn Kawamoto, CNET News.com March 1, 2007
Retrieved from CNET Tech News
http://news.com.com/Microsoft+could+face+more+fines%2C+warns+EU/2100-1014_3-6163349.html?tag=nefd.top

I found this article on Microsoft that I thought was very interesting. It talks about how on today the European antitrust regulators issued a formal warning to Microsoft, threatening further penalties against the software giant over its pricing of protocol licenses. The article says that the European Commission alleges that Microsoft has failed to adhere to an order issued by the EC in 2004. In this order the EC called for Microsoft to share interoperability information with its rivals so that their products would work with Microsoft's operating system. The Commission is giving Microsoft four weeks to respond to its allegations that its pricing is unreasonable because of a lack of innovation. If the Commission finds Microsoft's response lacking, it could initiate daily fines until the software maker comes into compliance with the March 2004 order. Microsoft is fighting back saying that the technology in question is innovative and they are using the 36 patents they have received in the U.S. and Europe for the protocols in question to support their position. Microsoft is also alleging that the Commission is supposed to considers four issues when reviewing the pricing principals but in this case they seem to have concentrated on only one of the four.

I think that this situation is very interesting. Essentially the Commission is asking Microsoft to give up some of its secrets. This would likely result in Microsoft losing some of its competitive advantage. However, Microsoft has been criticized in the past for not playing fair so maybe what the EU is trying to do will be good for the industry because it will give other companies a chance. I am looking forward to seeing what will be Microsoft’s response to the Commission’s allegations and what the final outcome of this conflict is.