Microsoft Drops Request for EC Antitrust Hearing
As it moves to settle antitrust lawsuits on several fronts, Microsoft Corp. said Wednesday that it canceled a government hearing that was to take place in Europe next month and faces another one back home in the U.S.
The Redmond, Wash.-based software company said it withdrew a request for a hearing in Brussels to respond to allegations from the European Commission that the company illegally attempted to monopolize the markets for server operating systems and media players.
The hearing had been set for Dec. 20 and 21.
Separately, a key congressional committee is planning to conduct its own hearing--tentatively set for Dec. 12--to review a proposed settlement of the long-running antitrust battle between Microsoft and the Justice Department.
Last week, Microsoft filed its written response to allegations raised by European antitrust regulators this year. Company officials expressed confidence Wednesday that they would be able to settle or resolve the European case without a hearing.
“We feel good about our response, and we feel there’s a strong record in the case with Microsoft’s view,” company spokesman Vivek Varma said.
Forgoing the hearing also could speed up resolution of the case, Varma said.
The two-day closed-door proceeding would have given Microsoft the opportunity to defend itself before European antitrust officials. But Microsoft’s rivals, including Sun Microsystems, also were invited to attend and planned to testify about how they were hurt by Microsoft’s actions.
European Commission officials said they would proceed with the case and announce a decision next year.
“The Europeans have a very strong case,” said Edward Black, president of the Computer and Communications Industry Assn., which represents several of Microsoft foes.
In Washington, officials on the Senate Judiciary Committee said Wednesday that they are working on a witness list for their hearing, which will examine the recently announced settlement between Microsoft, the Justice Department and nine states involved in the case.
Nine other states, including California, refused to sign the settlement, saying it was inadequate. They intend to press their own lawsuit in federal court to win tougher terms.
Sen. Patrick J. Leahy (D-Vt.), who chairs the committee, will preside over the hearing. Witnesses are expected to include Microsoft executives, representatives from the Justice Department and state attorneys general on both sides of the issue.
Microsoft had urged the committee to delay hearings until after the proposed settlement was completed.
“We didn’t think a hearing at this time would be appropriate or constructive,” Varma said.
Meanwhile, Microsoft attorneys will return to a federal courtroom in Baltimore on Dec. 10 to defend a proposed settlement of several dozen private class-action lawsuits accusing the company of overcharging consumers. The company has offered to donate $1 billion in software and other supplies to 16,000 public schools in exchange for settling the suits. A group of attorneys representing California consumers opposes the settlement, arguing that Microsoft should pay much more.
