Microsoft set to reject EU objections

Date: 08/11/01

By Peter Chapman

US software giant Microsoft is set to open a European front in its battle to quash claims that the company unfairly squeezed out rivals with its Windows operating system.

According to EU sources, Microsoft is expected to file a formal reply with the European Commission tomorrow (9 November), firmly rebutting the claims made in an August 'statement of objections'.

However, neither Microsoft nor the Commission was willing to confirm this.

The latest development follows reports that at least six American states disputed the company's settlement with the US Justice Department - a move that threatens to prolong a three-year legal battle in America to quell the market power of the Bill Gates empire.

Microsoft's response to European Commission concerns that it used its huge market muscle to the detriment of competition is expected to be followed by behind-closed-doors hearings in Brussels. These are set to take place on 20-21 December, with competition officials and third-party complainants including Sun Microsystems.

Microsoft said it was "confident" it could answer the charges levelled against it last August, along with allegations made by the Commission last year that the software giant was abusing its dominant position in the server market.

The Commission believes Microsoft acted illegally by bundling its multimedia viewer package Media Player into its Windows 2000 system - even though a US rival, RealNetworks, enjoys a far greater market share with its RealPlayer product.

At the same time Brussels said Microsoft had imposed unfair licensing regimes on customers, forcing them to pay discriminatory rates for additional users on a network. "We look forward to filing our response to the Commission and remain confident that we will be able to find a positive resolution to the issues that concern them," said Microsoft lawyer John Frank.

In its earlier response to last year's claims, Microsoft provided documentary evidence from 34 customers showing how its Windows software could interact with programs created by other companies. But critics questioned the reliability of these statements, which were drawn-up with the help of Microsoft lawyers.

US software giant Microsoft is set to open a European front in its battle to quash claims that the company unfairly squeezed out rivals with its Windows operating system.