Microsoft Urges EC Regulators Not to Order Windows Software Change
Microsoft Corp. wrapped up its defense Thursday against charges that it abused its market power in Europe and urged regulators not to order changes in its flagship Windows operating system.
But the software giant said it remained open to finding ways to avert sanctions and billions of dollars in fines.
“I do really want to underscore one thing, which is that we come to Brussels not only to discuss the issues but to work things out,” Microsoft General Counsel Brad Smith told reporters during a break in the closed-door hearings, which end today.
Today’s session gives Microsoft’s critics an opportunity to present their argument that the Redmond, Wash.-based company improperly leveraged Windows -- which runs more than 90% of personal computers -- to win ground in the European market for servers and audiovisual software.
European Commission officials are expected to hear from Sun Microsystems Inc., which filed the original complaint against Microsoft in 1998; Seattle-based software developer RealNetworks Inc.; Provo, Utah-based software developer Novell Inc. and several technology industry trade groups.
The European Commission has threatened to fine Microsoft as much as 10% of its global sales -- $32 billion last year -- and force the company to remove its Media Player audiovisual software from Windows. The EC is expected to issue a decision in the case next year. Microsoft could appeal to the European Court of Justice.
Microsoft’s strategy seems focused on winning a less draconian punishment in Europe, perhaps a deal similar to the out-of-court settlement it reached with the U.S. Justice Department in November 2001. Company executives indicated that Microsoft personnel would remain in Brussels for talks with the EC after the hearing.
People at the hearing said EC officials questioned Microsoft for nearly an hour after the end of its presentation. They said the questions were mostly technical and focused on the operation and integration of Microsoft’s Media Player as well as compatibility issues concerning the market for server software that manages computer networks.
Microsoft argued that bundling its Media Player with Windows did not give the company an advantage over rivals such as RealNetworks and Apple Computer Inc., which makes competing audiovisual software called QuickTime.
Microsoft also contended that its U.S. antitrust settlement, which requires the company to disclose software code to rivals and allow computer makers to include third-party Web browsers in Windows, addresses many of the concerns raised by the EC.
Sources said Microsoft focused on the market for server software that manages groups of personal computers. The EC alleges Microsoft unfairly withholds software details that competitors need to make their products work reliably with Windows. That practice, they say, causes buyers to gravitate to Microsoft-developed products, which benefit from intimate inside knowledge about how Windows works.
