Microsoft to comply with Europe
Software giant scraps appeals, bows to EU antitrust measures
BRUSSELS, Belgium – Microsoft Corp. dropped a nearly decade-long legal battle with European regulators Monday, agreeing to key parts of an antitrust ruling that has already led to hundreds of millions in fines.
The world’s largest software company will slash the royalties it charges rivals for interoperability information needed to make programs that work smoothly with Microsoft’s ubiquitous Windows operating system. It will make access to the data easier for open source developers who the EU said are now “virtually the only alternative for users.”
Microsoft said it would not appeal an EU Court of First Instance decision Sept. 17 that turned down its challenge to a 2004 European Commission order that found it guilty of monopoly abuse.
“We will not appeal the Court of First Instance decision to the European Court of Justice and will continue to work closely with the commission and the industry to ensure a flourishing and competitive environment for information technology in Europe and around the world,” the company said.
Daily phone calls between EU Competition Commissioner Neelie Kroes and Microsoft CEO Steve Ballmer over the past three weeks – and a dinner near her Dutch hometown – culminated in a deal early Monday.
“I sincerely hope that we can just close this dark chapter,” Kroes said. “I feel a bit sad because it took so long, it took so many years, and during those many years consumers suffered from the fact that Microsoft didn’t go along with what the commission asked it to do.”
She said the company could no longer use its leverage over the computing market from supplying 95 percent share of all desktop operating systems “to harm consumers by killing competition.”
The major issues with Microsoft have been resolved, Kroes said, cautioning that Microsoft could still face penalties for overcharging royalties on interoperability information. Backdated daily fines would stop as of Oct. 22.
Kroes said the EU order set a precedent for Microsoft’s future behavior in other areas – such as its Office software and its new Windows Vista operating system.
“Microsoft should bear this in mind,” Kroes said. “The shop is still open; I can assure you … there are a couple of other cases still on our desk.”
Shares of Microsoft added 34 cents to close at $34.51 Monday.
