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Microsoft To Face EU Action Over Antitrust Breach

Daniel Fleshbourne   on 27 June 2006 - 16:46 · 27 comments & 7621 views

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The European Union's top antitrust regulator is set to issue a formal ruling finding software giant Microsoft Corp. guilty of breaking EU competition rules, the Financial Times reported on Tuesday. The paper said Microsoft could face fines of up to 2 million euros ($2.51 million) a day. Quoting people familiar with the situation, the Financial Times said the European Commission's antitrust directorate had drafted a ruling according to which Microsoft had failed to fully implement the EU's March 2004 antitrust decision.

That decision included an order to provide rival companies with "complete and accurate" information about its Windows operating system, a step Brussels has said is needed for other firms to build products compatible with the Microsoft system. "The Commission's process calls for an advisory committee meeting, so this comes as no surprise," Microsoft said in a statement, adding it had committed "massive resources to the technical documentation program" and had already delivered five of seven instalments.

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News source: CRN

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#1 Octol on 27 Jun 2006 - 16:52
"Give a mouse a cookie and he'll want a glass of milk"

Microsoft is going to have to do something to stop this extortion or it'll never end. The problem with blackmailers is that they are inherently greedy; they just don't know how to quit while they're ahead.
#2 paperless on 27 Jun 2006 - 16:56
Extortion.. AHAHAHAHAHHAHARFOLMAOTROLLLAHAHAHAHAHAHAHAHAH.


Europe isnt USA folks, here you dont mess with the people just as you do in USA, our laws here are decent, play our game or get lost, Microsoft.
#3 SniperX on 27 Jun 2006 - 16:57
Must be weird for MS, dealing with a court system that won't back down or give them a soft option just because of who they are. (Though in my view, MS have already had way too long to produce the goods, and I'm saddened to see the UE already fall for the tried and tested MS routine of "delay at all costs".)

There is absolutely nothing in this case that Microsoft haven't bought upon themselves. If this makes me the all too predictable name of MS-Basher or whatever other name the many typical Neowin kiddies dream up for it whis week, so be it. I'm just glad that our EU courts are not as soft with MS as the US courts appear to be.

As paperless states above, it's not rocket-science; we're not the USA; play by our rules or face the consequences. You'd think MS would/could figure it out.
(8 replies) #4 majortom1981 on 27 Jun 2006 - 17:12
for all you microsoft haters. Microsoft has given the EU everything that it wants.

They gave them a media player free version of windows. they gave them the documentation to the apis and even gave them the windows source code.

alkso this is from microsofts site

"For server software developers who take a license under this program, Microsoft previously had created more than twelve thousand pages of technical documentation covering specifications for the communications protocols covered by the 2004 Decision as well additional technology going beyond those protocols. In addition, Microsoft previously offered voluntarily to provide up to five hundred hours of free technical support from experienced Microsoft professionals who can answer any questions licensees might have. With today's announcement Microsoft has supplemented these resources with a new license for all of the Windows Server source code that implements all of the communications protocols covered by the 2004 Decision."

How is this not enough. No matter what you anti Microsoft people say the EU is now Extorting Microsoft.

Microsft gave them everything they asked for.

Also there is tech net and msdn that they have to. What more do they want from Microsoft?
#4.1 markjensen on 27 Jun 2006 - 17:25
Quote - majortom1981 said @ #4
Microsft gave them everything they asked for.

Oh, really?
http://www.eweek.com/article2/0,1895,19366...-Page001-173283

Incomplete and unusable documentation would not qualify as "everything" in my book.
#4.2 lbmouse on 27 Jun 2006 - 17:40
Quote -
What more do they want from Microsoft?


To fully and in good faith comply with the laws of the jurisdictions were they have business interests. Your opinion makes no difference. They were convicted of a crime and have failed to comply with the original ruling issued in March 2004. Microsoft could easily avoid these fines by complying with the court ruling. They have chosen to make every effort to avoid doing so, and these fines are the result. Now, $2.51 million/day is just a tiny drop-in-the-bucket for both MS and the EU, so MS is just hoping that if they drag there feet slow, long, and hard enough, the outcome will be the same as vs. the DOJ in the US. The EU is taking the corrective measures the US should have taken a long time ago.

I'm not a MS hater (it's just a company for Christ's sake), but they need to be held accountable just like everyone else. If you don't like the rulings, pressure your political representatives to change the laws, but don't feel sorry for the company. Ignorance, indifference, and political jockeying are not acceptable defenses.

If anything, I hope that actions like this shake the foundations in Redmond (fear of competition can increase innovation) and cause MS to produce better products for their customers (me).
#4.3 majortom1981 on 27 Jun 2006 - 17:41
Quote - markjensen said @ #4.1
Quote - majortom1981 said @ #4
Microsft gave them everything they asked for.

Oh, really?
http://www.eweek.com/article2/0,1895,19366...-Page001-173283

Incomplete and unusable documentation would not qualify as "everything" in my book.


From the article you linked to they stated its not trying to get programs on Windows working faster its trying to get linux to work with windows.


ALl these arguments of Microsoft complying are being based off the wrong things

"But the EC said that the latest report from Barrett indicated that Microsoft had not yet complied with the obligation to disclose complete and accurate interface documentation which would allow non-Microsoft work group servers to achieve full interoperability with Windows PCs and servers."
#4.4 mprobins on 27 Jun 2006 - 18:02
Quote - markjensen said @ #4.1
Quote - majortom1981 said @ #4
Microsft gave them everything they asked for.

Oh, really?
http://www.eweek.com/article2/0,1895,19366...-Page001-173283

Incomplete and unusable documentation would not qualify as "everything" in my book.


Do you know how they came to that determination? They had a guy try to write a program that performed an "add user to domain" operation. From scratch. In less than a week.

He failed, what a shock.

When asked what in the documentation needed improvement, all the EU will state is that the requirements of the documentation are clearly specified in the original anti-trust ruling, and that ruling contains all the information Microsoft needs to comply. In other words, they won't tell Microsoft what in the documentation needs improvement in order to "comply".
#4.5 Xavien on 27 Jun 2006 - 18:03
indeed, this is not about any form of hating (the EU gets tonnes of money far far exceeding the paltry sum microsoft is fined from other sources), its simply the fact that Microsoft lost a ruling, they have to provide full and complete documentation for certain windows protocols, so non-microsoft companies can use the same protocols as effectively as microsoft themselves would.

Its a simple fact that if microsoft cannot comply with the laws (yes laws, this isn't lobbying like the US here) of a certain region then they should either shape up and comply with the laws or leave the region. (which i highly doubt microsoft would consider doing, their stockbrokers would have a fit if they pulled out of the EU market, not to mention the massive stronghold linux/Mac OSX could have on the market)
#4.6 lbmouse on 27 Jun 2006 - 18:08
Quote -
...and that ruling contains all the information Microsoft needs to comply. In other words, they won't tell Microsoft what in the documentation needs improvement in order to "comply".

The ruling DOES contain all the information Microsoft needs to comply. Ignorance is not a defense. They are just dragging their feet (2 YEARS!!! and instigating a bunch of political BS in hopes that the outcome will be the same as anti-trust cases in the US. We all have to obey the laws and judgements of the jurisdictions we live and work in, what makes MS different?
#4.7 markjensen on 27 Jun 2006 - 18:11
Quote - mprobins said @ #4.4
In other words, they won't tell Microsoft what in the documentation needs improvement in order to "comply".

I'm pretty sure Microsoft has the financial resources available to contract a small study group to perform the same task of writing a sample app from the supplied Microsoft documentation. It is not the E.U.s job to do all the identification of defeciencies, but they could be a bit more cooperative than they seem to be.
#4.8 MrCobra on 28 Jun 2006 - 05:27
Quote - Xavien said @ #4.5
indeed, this is not about any form of hating (the EU gets tonnes of money far far exceeding the paltry sum microsoft is fined from other sources), its simply the fact that Microsoft lost a ruling, they have to provide full and complete documentation for certain windows protocols, so non-microsoft companies can use the same protocols as effectively as microsoft themselves would.

Its a simple fact that if microsoft cannot comply with the laws (yes laws, this isn't lobbying like the US here) of a certain region then they should either shape up and comply with the laws or leave the region. (which i highly doubt microsoft would consider doing, their stockbrokers would have a fit if they pulled out of the EU market, not to mention the massive stronghold linux/Mac OSX could have on the market)

Then answer why other companies don't have to disclose proprietary info? If it is disclosed then it should be under license and an NDA. Just because a greedy law maker says 'monopoly' doesn't make it so. A monopoly is where there is no choice. There clearly is choice.
#5 SniperX on 27 Jun 2006 - 18:25
I think Xavien touches the salient point in his above post. The EU legal system and the USA legal system seem to be miles apart. Lobbying does not form a part of the European legal system, and, it seems to me at least, some Americans have a hard task fathoming this relatively simple concept.

Powerful companies/corporations (by size definition) have very limited sway in the EU legal system and, at times, you could be forgiven for believing that the UK at least would rather have no legal system than one which is dictated by large corporations, their donations, or whatever other contributions they might make. Our judges are far too full of self-importance to have anyone encroach on their ground.

I'm not suggesting for a second that the EU legal system has never and will never be swayed by any of the above, but it's very much the exception, not the rule. Microsoft may be one of the biggest and best things in their home country, but in Europe they're just another company and are, therefore, subject to the laws of our lands.

It is wholly immaterial whether you or I agree or disagree with those laws. They are the laws; work within them and do business, or work outsode of them and face prosecution. Either way is a choice. MS chose their particular path and I'm afraid there is absolutely no reasonable excuse for it. Now is the time to pay for their particular choice. The saddening thing is that you can be assured they will attempt the exact same thing in the future. It's shown to be one of their main business practises.

I for one am proud of the EU for not buckling in as the US court system appeared to.
(3 replies) #6 xxdesmus on 27 Jun 2006 - 18:40
what a joke. ...typical EU BS.
#6.1 SquareSoftO on 27 Jun 2006 - 18:55
...typical US ignorance.
#6.2 seta-san on 27 Jun 2006 - 19:07
It’s really funny; Europeans accuse Americans of being greedy to a point of shamelessness. But look at you people. Most European countries sold world peace out for Sadam’s oil while American and British blood is spilt trying to keep a peace. And look at this, you have a government that just appeared within the last decade, the EU, whose primary purpose is to take money from the US and passes a lot of laws to make this happen..... And I see it's attempting to do it to the most CHARITABLE Corporation in the world which donates millions upon millions to aide for refugees and is tirelessly looking for cures to diseases like AIDs. What does the EU do? Collect more money in order to fund it's bloated, inefficient, unnecessary bureaucracy.

Quote - SquareSoftO said @ #6.1
...typical US ignorance.
#6.3 markjensen on 27 Jun 2006 - 20:14
seta-san, Microsoft is not a "charitable corporation". They are "a corporation", whose goal is to maximize profits to provide the best possible return-on-investment for its shareholders.

It is "Bill Gates" that you are thinking of as the big contributer to charity.

The rest of your comment belongs in RWI, and not in here.
#7 harythewho on 27 Jun 2006 - 19:49
Geez... All the lawsuits I've heard that Microsoft had to deal with is in Europe. What the hell is going on over there?!?
(1 reply) #8 P1R4T3 on 27 Jun 2006 - 21:33
What will happen if MS says "FU, I wont pay"?
#8.1 theyarecomingforyou on 27 Jun 2006 - 23:36
The EU will pat them on the head and let them off. Oh, hang... no they won't. Even if Microsoft refuses to pay the actual money they'd just be fined in other ways or banned from trading in the EU... either would be far worse than actually complying with the EU's requests or paying the fine.
#9 Trix on 27 Jun 2006 - 22:44
i think its a load of bs, the eu are just trying to get more money out of people & companies.
and don't call me some ignorant american. i might be ignorant but i'm british ;D
#10 MindTrickz on 27 Jun 2006 - 22:48
Then they wont be able to sell any of thier product in Europe!
- I'm so proud of EU for not buckling under the pressure like US DOJ.
#11 Liquid on 28 Jun 2006 - 00:49
Jesus pull out of europe and laugh. Just say, want to sue us, fine, don't use our product. Then see how they like it, being shut out from the world. Sick of the EU, they just bitch about stupid things.
(1 reply) #12 statm1 on 28 Jun 2006 - 10:25
The EU knows MS needs europe. So it says lets see if we cant be difficult and drag our feet about MS not complying so we can steal their source code and give it to everyone else. Lets pick on MS they have enough money as it is.. And yes im an effin american, get over it.. What I wanna know is why the EU and the USDOJ for the matter doesnt go after APPLE. They bundle everything plus the kitchen sink inside OSX.. But noooo they are the minority you dont dare pick on the minority. Shame on you for picking on the little guy. The EU is full of BS but no one in Europe can get your head out of their ass long enough to realize it.. We'll just call americans ignorant.. They wont know any better.
#12.1 QuarterSwede on 28 Jun 2006 - 17:50
Sigh, here we go again. The reason Apple is not considered a monopoly is because everything bundled with OS X (Mail, Safari, etc.) can be deleted safely (and freaking easily too). None of it is tied to the system like Internet Explorer is.
#13 C_Guy on 28 Jun 2006 - 16:43
It's very unfortunate that Microsoft has to waste so much time and money on this kind of crap. Microsoft does play by the rules but it's just not enough when the EU has an endless appetite for their money.
#14 QuarterSwede on 28 Jun 2006 - 17:51
Personally, I think its too early to pass judgement on who is screwing who here.

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