EU Wins Backing Of Member States For Microsoft Ruling

[Mike Reinehr]

This just in:

EU Wins Backing Of Member States For Microsoft Ruling

Associated Press

BRUSSELS -- The European Commission won unanimous backing from national 
antitrust regulators Monday for a draft ruling against Microsoft Corp. that 
people familiar with the matter say finds the U.S. software giant abused its 
Windows monopoly and orders deep changes in the way the company operates.

Commission spokeswoman Amelia Torres said the closed-door session with 
representatives of the 15 European Union governments ended around midday 
Monday. "The member states have unanimously backed the commission's draft 
decision," she said without elaborating.

The draft ruling could be adopted as early as next week -- barring a 
last-minute settlement.

A Microsoft spokesman in Brussels said earlier Monday that the company's legal 
team remained in daily contact with the commission, the EU's executive arm, 
trying to resolve the long-running case amicably.

The closed-door session with representatives of the 15 EU governments hadn't 
been expected to produce major changes to the European Commission's draft 
ruling, which could be adopted as early as next week -- barring a last-minute 
settlement.
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Microsoft is seeking to avert a far-reaching order that would not only result 
in a large fine but also force the company to change the way it sells its 
flagship Windows to computer-makers in Europe.

A negative decision would be the biggest setback for Microsoft since a U.S. 
judge found it guilty of antitrust violations involving Internet browsers in 
2000. Microsoft reached a settlement with the Bush administration a year 
later that allowed it to keep its Internet Explorer in Windows with some 
conditions.

People familiar with the EU case say the draft ruling similarly finds 
Microsoft abused its monopoly in computer operating-system software to gain 
market share in markets for digital media players and low-end servers.

The EU wants to force Microsoft to offer computer makers a version of Windows 
without its own Media Player to give rivals like RealNetworks Inc. a better 
shot at getting onto consumer desktops.

Monday's committee session gave EU governments a final opportunity to comment 
on the commission's draft decision, which was sent to capitals last month. 
The committee reconvenes next Monday to consider the size of the fine against 
Microsoft, and the commission is expected to adopt the decision as early as 
March 24.

Microsoft is expected to ask the European Court of Justice to suspend any 
negative decision pending appeal, but legal experts say such an injunction is 
not automatic. Given the rapidly changing nature of the industry, the 
commission is expected to argue its order would be meaningless by the time 
the appeal is decided, a process that can drag on for years.

Copyright (c) 2004 The Associated Press
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