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Official: Microsoft is a monopoly in Israel

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HA Aretz Israeli Daily writes...

Official: Microsoft is a monopoly in Israel

Antitrust Commissioner Dror Strum has informed Microsoft that he has formally classified the software giant a monopoly in Israel, meaning the company is now subject to a string of limits on its marketing methods inside the country.

Strum recently sent a letter to Microsoft's representatives in Israel "reminding" Microsoft that it is liable to all the rules applying to monopolies in Israel, which were included in a draft proposition sent to the company in the past.

By classifying Microsoft a monopoly in Israel, the company is now prohibited by law from, among other things, giving its clients benefits in exchange for selling its products rather than its competitors merchandise, or forbidding them to sell competing products, or to link the sale of one of its products with the sale of additional Microsoft products.

For example, Microsoft will not be allowed to oblige its clients sell its Windows operating systems together with its Explorer browser application.

The Antitrust Authority began discussing the classification of Microsoft as a monopoly in the latter half of 1999 following complaints about practices employed by Microsoft in Israel that prima facie violated the accepted rules of competition in Israel.

At the end of 2000 representatives of Microsoft tried to reach an arrangement that would prevent it being declared a monopoly.

The company propositions included implementation in Israel of the limitations imposed on it by the courts in America. At the time, Microsoft refused to accept limitations imposed on it by "peripheral countries" such as Israel.

Official: Microsoft is a monopoly in Israel

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