Microsoft Blinks in European Legal Fight

Source: Technology Digital

Date :22/10/2007 17:14:01

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 royalty fees it charges rivals for critical interoperability information needed to make programs that work smoothly with Microsoft's ubiquitous Windows. It will broaden access for open source developers that the EU said are now "virtually the only alternative for users."

Microsoft said it would not appeal a EU Court of First Instance decision on Sept. 17 that turned down its challenge to a 2004 European Commission order three years ago 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," it 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 in the early hours of 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

If the software maker does not keep to the terms of the deal, competitors will be able to take the company to Britain's High Court to seek damages.

Regulators warned that Microsoft had "ongoing obligations to continue to comply" with the 2004 ruling that found it guilty of monopoly abuse, ordering it to share information with rivals, market a version of Windows without a media player and pay a fine of 497 million euros ($613 million).

October 22 2007