Dealer files antitrust complaint against Microsoft

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

Topics

Egypt, IP, Copyright, Law

NEWS

A Dutch software dealer has filed a complaint against Microsoft with the European Commission, arguing that the company's pricing policy in Europe violates antitrust laws.

Company owner Samir Abdalla's complaint is that Microsoft charges at least a third more for its software in Europe than it does in the US. Abdalla's lawyer, Gerard van der Wal of the Houthoff Buruma practice, said his client had begun a legal proceeding "this week" and was seeking clarification from the Commission.

"At this stage, we are asking the court to accept that there has been a violation of the relevant European law," he told ZDNet UK on Friday. "Clearly, the Commission does not enter into a discussion at this point."

According to Abdalla's lawyers, the price difference between Europe and the US is between 30 and 50 percent. "The evidence is fairly clear," van der Wal said. "There is a huge price difference, and Microsoft uses its intellectual property to control that."

Abdalla is already engaged in legal proceedings with Microsoft. In May, Microsoft sued Abdalla as principal of the Dutch company HW Trading, alleging he had received more than $3.7m (£2.4m) from the illegal sale of unlicensed Microsoft software in the US. The lawsuit, filed in California Central District Court, claims Abdalla took advantage of an Egyptian government program that provides low-cost software to citizens. Abdalla allegedly exported the software in that scheme to US dealers and replaced it with counterfeit software in Egypt.

Read this

Leader
Leader: Microsoft's mobile strategy has gone missing

Enterprise mobile technology advances on all fronts, except one. Microsoft needs to make its strategy plain…

Read more +

In response to that complaint, Abdalla has accused Microsoft of stifling trade in the so-called 'grey market', which he argues is legal under European law. The grey market usually describes a market where goods, such as software, can be bought and traded freely even though a supplier has tried to ensure that the goods are only used in the country for which they are intended.

As for the current legal proceedings, van der Wal said he hopes the evidence will be put before the Commission, "and we will go from there". He said he expects it will take "a few weeks" before the case can move any further.

Microsoft has not been informed of the details of HW Trading's allegations, a spokesperson for the company told ZDNet UK on Monday. "We believe our practices are in full compliance with EU law. We look forward to providing any information to disprove HW Trading's claims," the spokesperson added.

Talkback

This post has been removed by a moderator.

dealers are at present coining it in by the compulsory sale of Windows operating systems on new machines even when it's not wanted, but they seem to think thats OK.
But when it comes to selling non compulsory products that people don't want they blame it on higher prices and shout foul.

Comuscomp 1 December, 2008 13:20
Reply

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Carl White

Once they realise symantec are willing to pay real money, they will simply keep extorting, unless of course symantec/authorities can use the...

13 minutes ago by Carl White via Facebook on Symantec offered hackers $50,000 in source code sting
Jonathan Hassell

You can find more information on BS 8878 by Jonathan Hassell its lead-author at http://www.hassellinclusion.com/bs8878/ The page includes a...

10 hours ago by Jonathan Hassell on BSI publishes first British web accessibility standard
servermanagement

Thanks for this list. Now I know, what to include on my system to make it more functional.

10 hours ago by servermanagement on Ten flawed products that derail productivity
1000092626

What if it's a 4 car household? The point is, more bandwidth = more things you can do simultaneously, like streaming HD video in one room of the...

11 hours ago by 1000092626 on Virgin Media beats 100Mbps schedule, hikes prices
Gary Burton

No point whatsoever increasing broadband download speed. unless ever server on the net has access to massively up rated throughput. The worlds...

12 hours ago by Gary Burton via Facebook on Virgin Media beats 100Mbps schedule, hikes prices
Random_Error

They're also increasing their TV package prices, whether to help fund this or not.

13 hours ago by Random_Error on Virgin Media beats 100Mbps schedule, hikes prices
Techs UK

How can you set it up wrong to intermittently connect? Should I be asking for more pay? Outlook/Exchange is a breeze.

17 hours ago by Techs UK on Ten flawed products that derail productivity
JamesCheese

And how much did Microsoft pay you for that article?

17 hours ago by JamesCheese on Time for an evil umpire: Google, Microsoft & privacy
JamesCheese

"But how many times have you seen someone make a video call from a tablet?" I do myself a lot. "How often have you seen someone hook up a tablet...

17 hours ago by JamesCheese on Apple and Amazon's tablet rivals don't get it
k0tcs3

I have to disagree with this article. Maybe there is a cultural difference between the US and UK, or maybe your network of friends is less...

17 hours ago by k0tcs3 on Apple and Amazon's tablet rivals don't get it
filthylooker

My thoughts are that there's some space for change in the business world for tablets as destop replacements. I'd contend that the tablet has a...

20 hours ago by filthylooker on Apple and Amazon's tablet rivals don't get it
emrahatilkan

Adobe did not dropped AIR development. It was Flex.

21 hours ago by emrahatilkan on Flash 11 and AIR 3 get a release date
dd2

Company called Synergix ( www.synergix.com ) has a fix for the offline folders issue experienced by Win 7 users. And you can check out...

21 hours ago by dd2 on VPNs, offline files and the simple Windows 7 fix; sometimes
Neil Lawther

I think all your above points are increasingly more invalid. The android ecosystem is open and evolving and maturing day by day. developers are...

22 hours ago by Neil Lawther via Facebook on Apple and Amazon's tablet rivals don't get it
David Meyer

That really is what the European Commission is telling me. To give a precise quote: if a member state turns down the agreement, "ACTA will stay a...

1 day ago by David Meyer on ACTA's EU future in doubt after Polish pause
MyProffs Proffs

Apple devices are back online in German, take the down, no put them back...

1 day ago by MyProffs Proffs via Facebook on German iPhone, iPad sales temporarily banned
Fat Matt

AAAAAAAAWWWWW MAAAAAAANNN, I spent nearly a grand on my pc now it's gonna be completely outdated.

1 day ago by Fat Matt on Clever on-off switch for graphene. Transistors next?
Vanessa Deagan

I completely disagree with this article. I believe the reason why Google are not successful in the tablet space is because of two reasons: 1....

1 day ago by Vanessa Deagan via Facebook on Apple and Amazon's tablet rivals don't get it
servermanagement

Bravo Infiniserv! Virtual Private Server looks promising and very useful for companies who can't really afford a expensive cloud computing software.

1 day ago by servermanagement on Infiniserv launches Linux-based UK cloud
oneoffreader

Agree with Thinklog, Voice and video talk has been a key feature between all my friends who also use tablets.

2 days ago by oneoffreader on Apple and Amazon's tablet rivals don't get it