ZDNet UK / News and Analysis / Business of IT / IT Strategy

EU looks to wrap up Microsoft probe

By Declan McCullagh, CNet, 2 July, 2002 07:58

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Microsoft, Ruling, Probe, Antitrust, coiurt, Legal

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A top European Union official said on Monday that a ruling in its Microsoft antitrust inquiry will happen by the end of the year. "We're completing our analysis" in the investigation, said Phillip Lowe, the next director general for Competition. The effort has focused on Microsoft's server software and streaming media technology. Lowe told a conference organised by the American Antitrust Institute that he expected to work closely with US regulators, and he hinted that Europe was waiting for a federal judge to rule on the Microsoft case. A European decision likely will wait "until Microsoft has more clarity on the US side", Lowe told reporters afterward. He stressed, however, that "we are addressing questions of interoperability, which are not quite the same as the initial judgment and appeal" in the United States. Lowe, previously the director of the EU's merger task force, starts his new job 1 September. US district judge Colleen Kollar-Kotelly heard closing arguments last month in a case that pitted Microsoft against nine states, which are seeking to levy additional penalties. They've refused to sign a settlement inked in November between Microsoft, the US Justice Department, and nine other states. Separately, Kollar-Kotelly is also required to decide whether or not the settlement is in the "public interest". In 1998, the EU began investigating Microsoft after Sun Microsystems complained that its rival would not disclose technical interfaces to Windows NT. Last August, the EU expanded its Microsoft investigation to include a look at how streaming media technology has been integrated into Windows. Microsoft filed a response to the EU's probe last fall and is awaiting a response. If found guilty of violating European competition rules, Microsoft can be fined up to 10 percent of revenue. "We continue to cooperate fully with the EU and answer any questions about our products and our efforts to interoperate with other products," Microsoft spokesman Jim Desler said. During his hour-long speech to an audience of economists and antitrust lawyers, Lowe said that he'd like to see greater congruence of European and US approaches, stressing that while laws may be different, the results have been similar. One difference is that in the EU the government can block a merger through an administrative decision, while the US Justice Department or Federal Trade Commission must go to court. Microsoft shares closed Monday at $52.66, falling nearly 4 percent amid a broad market decline.
Think it's all over? The antitrust case against Microsoft can still go back the to Court of Appeals, and then there's the European Commission's investigation... See ZDNet UK's DoJ/Microsoft News Section for the latest headlines. Have your say instantly, and see what others have said. Go to the Microsoft forum. Let the editors know what you think in the Mailroom.

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