The European Union has announced that it will initiate another probe with regard to monopolistic / anti-competitive activities over Microsoft and Time Warner's plans to buy anti-piracy software manufacturer ContentGuard. ContentGuard is a US company that makes DRM solutions. Time Warner and Microsoft agreed in April of this year to buy out Xerox's majority stake in the company.
The EU announced that "After a preliminary review, it appears to the Commission that the transaction might possibly create or strengthen a dominant position by Microsoft in the market for Digital Right Management solutions." The EU concluded that DRM is going to be a major issue / product in years to come, and was concerned that this merger would give Microsoft an un-healthy 'tip' over other companies in the market.
The commission also announced that they would be widening the investigation to look at vertical integration (i.e. Microsoft buying up suppliers like ContentGuard) in other areas. The investigation will report in January 2005.
Earlier this year, Microsoft was given a 500 Million Euro fine for anti-competitive behaviour. Microsoft is challenging the decision.
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