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EU sanctions would raise issues for US, Microsoft
Washington, Aug 07: Strict antitrust sanctions that European regulators are contemplating against Microsoft Corp. could lead to a clash with US authorities and put the software giant in a quandary about whether to sell separate US and European versions of Windows.
Washington, Aug 07: Strict antitrust sanctions that European regulators are contemplating against Microsoft Corp. could lead to a clash with US authorities and put the software giant in a quandary about whether to sell separate US and European versions of Windows.
Microsoft might be forced to accede to European Commission penalties that are stricter than the ones in its landmark antitrust settlement with the US government if it wants to avoid fragmenting its flagship operating system product, attorneys said.
The proposed European sanctions would be "far more drastic with far greater implications for the way Microsoft does business than anything done so far in the United States," said Michael Hausfeld, a class-action attorney who represents a consumer group in the case before the European Commission.
If the commission follows through on the sanctions, Hausfeld said, the move could mark "a transition in the history of antitrust law from enforcement being directed by U.S. views to one that is more informed by European views." In a statement on Wednesday, the European Commission accused Microsoft of leveraging its dominant position in media players, which play movies and video on computers, and low-end servers that manage everything from Web sites to e-mail systems.
The agency said it might fine Microsoft, order it to reveal key computer code in Windows that allows it to work with servers, and force the company to halt its bundling of Windows Media Player with Windows, or to include rival software programs among its offerings.
In contrast, the U.S. Justice Department agreed to a settlement with less burdensome restrictions designed to give computer makers more freedom to feature non-Microsoft software. It requires Microsoft to license the code needed to make server software function with the operating system under "reasonable" terms.
European Union officials have stressed that their case against Microsoft is different from the one that led to the Justice Department settlement. A Justice Department spokeswoman declined to comment on the EC statement.
Still, antitrust attorneys said a conflicting outcome would raise questions similar to those that followed the EC's decision to scuttle General Electric Co.'s proposed takeover of Honeywell International Inc. two years ago.
In that case, the Justice Department endorsed the deal as beneficial to consumers, but European regulators complained it would hurt competition in the market for airplane engines and avionics.
Microsoft spokesman Jim Desler said company officials "are not going to speculate on possible outcomes or the suggested remedies of the commission."
However, the EC sanctions would force Microsoft to make some tough decisions.
During the remedy trial in the U.S. antitrust case, Microsoft argued that "fragmenting" Windows or "unbundling" the operating system by stripping out features like the media player would be disastrous for the company.
But if Microsoft is forced to sell Windows without a media player in Europe, it would face the question of whether to submit to the same restriction in the United States or sell a different version in its home country.
Complicating matters further, Hausfeld said, is the question of whether authorities would be able to stop the disclosure of Windows software code or the sale of different versions of Windows from spreading across international boundaries. Bureau Report
The proposed European sanctions would be "far more drastic with far greater implications for the way Microsoft does business than anything done so far in the United States," said Michael Hausfeld, a class-action attorney who represents a consumer group in the case before the European Commission.
If the commission follows through on the sanctions, Hausfeld said, the move could mark "a transition in the history of antitrust law from enforcement being directed by U.S. views to one that is more informed by European views." In a statement on Wednesday, the European Commission accused Microsoft of leveraging its dominant position in media players, which play movies and video on computers, and low-end servers that manage everything from Web sites to e-mail systems.
The agency said it might fine Microsoft, order it to reveal key computer code in Windows that allows it to work with servers, and force the company to halt its bundling of Windows Media Player with Windows, or to include rival software programs among its offerings.
In contrast, the U.S. Justice Department agreed to a settlement with less burdensome restrictions designed to give computer makers more freedom to feature non-Microsoft software. It requires Microsoft to license the code needed to make server software function with the operating system under "reasonable" terms.
European Union officials have stressed that their case against Microsoft is different from the one that led to the Justice Department settlement. A Justice Department spokeswoman declined to comment on the EC statement.
Still, antitrust attorneys said a conflicting outcome would raise questions similar to those that followed the EC's decision to scuttle General Electric Co.'s proposed takeover of Honeywell International Inc. two years ago.
In that case, the Justice Department endorsed the deal as beneficial to consumers, but European regulators complained it would hurt competition in the market for airplane engines and avionics.
Microsoft spokesman Jim Desler said company officials "are not going to speculate on possible outcomes or the suggested remedies of the commission."
However, the EC sanctions would force Microsoft to make some tough decisions.
During the remedy trial in the U.S. antitrust case, Microsoft argued that "fragmenting" Windows or "unbundling" the operating system by stripping out features like the media player would be disastrous for the company.
But if Microsoft is forced to sell Windows without a media player in Europe, it would face the question of whether to submit to the same restriction in the United States or sell a different version in its home country.
Complicating matters further, Hausfeld said, is the question of whether authorities would be able to stop the disclosure of Windows software code or the sale of different versions of Windows from spreading across international boundaries. Bureau Report