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EU Probe of Microsoft, Time Warner Is Expected

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From Reuters

Microsoft Corp. and Time Warner Inc. will face an in-depth probe by the European Commission of their plans to jointly control a digital rights management firm, a person close to the situation said Tuesday.

The four-month probe will be announced today, the source said. Of the hundreds of cases filed annually with the commission, the European Union’s antitrust authority, only a few are subject to an in-depth inquiry.

The commission found this year that Microsoft abused its virtual monopoly in the market for personal computer operating systems. Once a company has been found to abuse its dominance, anything it does receives an extra measure of scrutiny from the commission.

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Microsoft and Time Warner have asked the commission for permission to acquire joint control of ContentGuard Inc., a Bethesda, Md., maker of anti-piracy software.

Technology used to prevent the illegal use or copying of digital files is a growing priority for movie and video game makers, recording companies and software firms. As a result, companies including Microsoft and Time Warner are investing heavily in such technology.

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