Microsoft targeted in two new antitrust probes

Microsoft has once again come under the EU Commission's microscope, which opened two new antitrust investigations into the software giant's activities this week.

The first investigation comes in response to a complaint made by Opera to the EC last month, accusing Microsoft of illegally tying Internet Explorer to the Windows operating system.

Opera wants the Commission to force Microsoft to unbundle Internet Explorer from Windows and carry alternative browsers pre-installed with the OS and to ensure Microsoft follows fundamental open standards accepted by Web authoring communities instead of following what Opera calls an "embrace, extend and extinguish" strategy.

Opera hopes the investigation will be steered by the Court of First Instance's confirmation last year of the European Court's 2004 decision that Microsoft illegally tied its Media Player to Windows.

Although Microsoft has decided not to appeal the 2004 ruling again and will comply with the decision, it said it believes the bundling of Internet Explorer benefits consumers.

"We believe the inclusion of the [IE] browser into the operating system benefits consumers, and that consumers and PC manufacturers are already free to choose to use any browsers they wish," a Microsoft representative said last month in response to Opera's complaint.

The second EC antitrust probe comes in response to a complaint made by the European Committee for Interoperable Systems (ECIS) -- whose members include Adobe, IBM, Nokia, Oracle, RealNetworks, Red Hat and Sun -- which describes itself as promoting market conditions in the ICT sector which encourage competition.

According the Committee, Microsoft has illegally refused to disclose interoperability information across a broad range of products, including information related to its Office suite, a number of its server products, and also in relation to the so-called .NET Framework.

The ECIS has also sided publicly with member Opera's complaint, with its legal counsel Thomas Vinje saying in a statement: "By tying its Internet Explorer product to its monopoly Windows operating system and refusing to faithfully implement industry accepted open standards, Microsoft deprives consumers of a real choice in Internet browsers. Browsers are the gateway to the Internet. Microsoft seeks to control this gateway."

The Commission's examination will also consider whether Microsoft's file format Office Open XML is sufficiently interoperable with competitors' products.

Intel also in the firing line
Microsoft is not the only company facing the antitrust music, with New York Attorney General Andrew Cuomo launching his own antitrust probe into Intel's trade practices last Thursday.

Cuomo is investigating whether Intel coerced customers to exclude rival AMD from the worldwide market for x86 computer processing units which, according to the attorney's office, "accounts for over US$30 billion in annual worldwide sales, with Intel retaining the lion's share of the market, estimated at 90 percent by revenue and 80 percent by volume".

The probe is not Intel's first encounter with antitrust hearings, with courtrooms over the world examining the chip manufacturer. The European Commission accused Intel of uncompetitive behaviour in June last year, while the Japanese Federal Trade Commission issued a cease and desist order in 2005 requiring Intel to stop offering monetary rebates in return for the company's customers limiting the use of rivals' chips. AMD also filed a case in the US District Court of Delaware in 2005.

Advertisement

Talkback 1 comments

    EU -the new super powerAnonymous -- 15/01/08

    Watch for more of this from the EU. Since its formation they have gained far to much power over foreign companies. They get a complaint from a competitor that a foreign company is giving them some tough competition due to aggressive business practices so the EU come along and protects their own nest and hits them with big fines. now i am not defending Microsofts or Intel business practices but the EUs action could also amount to extortion itself. They basically now have a policy of you play by our rules or else. I mean look at Operas case. It smacks of the Real Networks case a few years back and the end result. 2 versions of Windows on the shelves with one not selling as it didnt contain a media player. The same will happen with IE. Once again a hole heap of money will be wasted in the courts and the only ones who get rich from it are the lawyers and the EU.


Latest Videos

Blogs

  • Juha Saarinen TelstraUnClear
    Telstra's New Zealand arm TelstraClear is one strange company ...
  • Array E-health too unsexy for COAG
    There will always be something more politically sexy than e-health for state governments, meaning the National E-Health Transition Authority's business case for a national electronic medical record might just sit on the shelf gathering dust forever.
  • Array Will Rudd's bush backhaul bonanza deliver?
    Rural areas will be welcoming the government's decision to put its money where its politicising is, funnelling $250m into a regional fibre upgrade to six rural centres. Remedying over a decade of near-neglect at the hands of telecoms privatisation, the investment could be the firmest step yet for Labor's NBN dream — but with inevitable political questions and a looming election, Rudd and Conroy need to deliver, and quickly, to preserve the NBN's credibility.
  • More blogs »

Tags

Back to top

Featured