Monday, September 17th 2007
Microsoft's Appeal in European Antitrust Ruling Rejected
The rejection of Microsoft's appeal to the European antitrust ruling against it means that there remains, at least in theory, a significant threat to Microsoft's way of doing business: bundling new features and products into its dominant Windows operating system.
In the United States, the Bush administration chose to settle the Microsoft antitrust case without challenging the company's freedom to put whatever it wants in its operating system. But in Europe, Microsoft's bundling practice became a key element in the European Commission's antitrust suit.
The other impact of the European ruling, legal experts say, will be on Microsoft's ability to guard some of its intellectual property. The court upheld the Commission's order that Microsoft must share technical information with competitors so their server software works smoothly with Microsoft's Windows desktop. The intent of the order was to prevent Microsoft from using its dominance of the desktop market to hinder competition in the server market from I.B.M., Sun Microsystems, Red Hat and others.
Microsoft said the Commission went too far, and that its order amounted to confiscating the company's intellectual property. The order only applies to Europe. But Microsoft may have a difficult time containing the impact on the European market only. As a practical matter, the information it passes to I.B.M. or Sun in Europe will be hard to bottle up in one region of those global companies.
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Source:
The New York Times
In the United States, the Bush administration chose to settle the Microsoft antitrust case without challenging the company's freedom to put whatever it wants in its operating system. But in Europe, Microsoft's bundling practice became a key element in the European Commission's antitrust suit.
The other impact of the European ruling, legal experts say, will be on Microsoft's ability to guard some of its intellectual property. The court upheld the Commission's order that Microsoft must share technical information with competitors so their server software works smoothly with Microsoft's Windows desktop. The intent of the order was to prevent Microsoft from using its dominance of the desktop market to hinder competition in the server market from I.B.M., Sun Microsystems, Red Hat and others.
Microsoft said the Commission went too far, and that its order amounted to confiscating the company's intellectual property. The order only applies to Europe. But Microsoft may have a difficult time containing the impact on the European market only. As a practical matter, the information it passes to I.B.M. or Sun in Europe will be hard to bottle up in one region of those global companies.
Read the Full Story
9 Comments on Microsoft's Appeal in European Antitrust Ruling Rejected
Anyone have a model of what would happen if MS pulled its software from Europe? Would that be a world wide crash or just an economic bashing? I would love to see a weather model on something like that (NOTE: I'd hate to see it happen).
I hope people understand what Microsoft is doing is illegal under both EU and AMerican law. Its just that the EU is pursuing it further and not settling because it would prevent them from doing anything on future breaches of competition.
...whereas in the UK and the rest of Europe, they made them get a switch for the ass beating of their lives!!!
And who expects bushie and friends' regime to do anything about M$. They're like best buddies with what they have in common.
P.S. I can't spell M$ any other way, it's just....unnatural :)
ASs for microsoft, their share price fell 1% on news of their defeat in appealing.