Microsoft Details Antitrust Concessions

By Nate Mook | Published June 6, 2005, 10:59 AM

Less than a week after Microsoft submitted its final plan to comply with antitrust remedies imposed by the European Commission in March 2004, EU officials have backed away from harsh rhetoric and are praising the offer. Microsoft says it made "tough concessions," but continues to refuse demands to open source its server protocols.

"I am happy that Microsoft has recognized certain principles which must underlie its implementation of the Commission's decision," European Competition Commissioner Neelie Kroes said in a statement.

Despite initial concerns, there are no outstanding issues regarding the demand that Microsoft unbundle Windows Media Player from its operating systems, Kroes said.

Still, the Commission is not entirely content with Microsoft's response to the requirement that it license the source code to its Windows protocols in order to allow better interoperability between different platforms. The code would enable third-party systems, such as game consoles, to better communicate with Microsoft systems.

A disagreement revolved around pricing for the protocols, which ran as much as $600 per server, and Microsoft's refusal to give access to open source projects. Now, Microsoft says it will provide some source code free of charge and make the program available to developers around the world, as opposed to just those in Europe.

But Microsoft says it will not allow open source projects full access to the technology, saying the protocols may only be used if published under a separate licensing agreement. An independent party appointed by the EU commission will now evaluate the royalty proposal during a two-week market test period.

"We worked to be creative in enabling developers to work with our technology together with open source software, yet still protect our intellectual property. Our proposal addresses this objective," said Microsoft General Counsel Brad Smith. "While we have not reached agreement with the Commission on whether open source developers can go even farther and publish the source code that implements our technology, we are comfortable turning to the courts for guidance on this issue."

After market testing is complete, the EU Commission will determine if Microsoft has complied with the ruling against it. Under EU policies, it has the right to fine Microsoft up to five percent of its daily sales if it deems the company is not following orders.

"I remain determined to ensure that all elements of the decision are implemented," Kroes said. "This includes the ability for developers of open-source software to take advantage of the remedy."

Comments

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Microsoft should pull out of the EU and people there will still buy windows but will just have to import it instead of buying it localy and punish the EU financialy for acting like a bunch of asses.

People will still buy window because Linux is hard to use plus lack of drivers. I would love to give linux a try but untill i can go out and buy upgrades for my computer without being limited by lack of drivers i will stick to windows.

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I still say pull out of the EU for a while and give them NO concessions. The good people of Europe don't want this only the greedy government does. To ask ANY company to give up their trade secrets or R&D to give a competitor that can't figure out their own technology just to give them equal leverage (because they don't want to dish out the millions to develope their own) is absurd, and it's just flat out wrong!

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lmao!

pulling out of the EU would be economic suicide for Microsoft - EU computer users have more economic buying power than the US market. If MS were to become unavailable, their world market share would drop dramatically - like they'd ever risk that.

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Don't be an idiot, if MS pulls out, very little risk for them. EU would very soon forget about demands. Oh wait, that already happened...

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MS products are easy to replace, and getting easier every day.

Pulling out of the market would be disasterous for Microsoft - as I said before, the EU is a much larger market than the US - roughly double. It would certainly be a boon for Open Source if they were stupid enough to withdraw their products, which wouldn't be missed.

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You really should consider taking your own advice.

There are more legal ramifications to them pulling out than you could ever imagine.

Why do you think they are complying? It's not because they want to.

I think they have made excellent progress, I don't think they should open their code, just properly document how to communicate with it and make the documentation available for free to anyone.

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Are you nuts it would be purchased on line and taken out of retail. The retailers would be the ones to put the pressure on the EU to get it back. The tax revenue lose alone would hurt the EU. As far as open source it is NO where ready for prime time not by a long shot!

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MS products are impossible to replace, not just hard, impossible. And BTW, I'd like to see some statistics that EU is a larger marker than US.

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I understand its not as easy as that, but they can take very serious steps if they begin loosing serious money.
And BTW, they are not complying. Read the article. They have done very little of what was requested and EU accepted.

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Thanks for approving, EU.

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