March 2004
No "Windows" of opportunity for Microsoft software bundling as EU hands down record fine
After many months of publicity the EC released its decision yesterday regarding the behaviour of Microsoft in its insistence to continue selling software in a bundled format. Currently if your PC uses Microsoft Windows as its operating system your media player will automatically be Microsoft Media Player. This works to the detriment of rival companies such as Apple (Quicktime) and RealNetwork (RealPlayer) who a) find it hard to make their software compatible with Windows and b) have to work harder to convince consumers of their product's worth when an existing media player is already included with Windows.
The reliance of other popular Microsoft software upon the Windows operating system has meant that the EC views Windows as acting in a near monopoly situation, circumstances outlawed by EU competition law.
As a result of this finding the EC has given Microsoft 120 days in which to ensure that Microsoft's competitors have enough access to secrets behind how Windows operates in order that they might be in a position whereby they can produce Windows compatible software. They have 90 days in which to unbundle software so that Windows and Media Player are entirely separate. An unprecedented fine of approximately 497 million Euros was also laid down however this is a drop in the ocean compared to Microsoft's reputed $50 billion cash reserves.
If the EC decision remains in place an interesting precedent will be set with regard to attaching any form of Software to an operating system for example music software, database software or voice recognition devices. It is for this reason that popular opinion and alleged warning shots from Microsoft following the ruling suggest that Microsoft will appeal.
This is the first major occasion upon which Microsoft has been tested on the subject of competition in Europe. Several lengthy anti-trust litigations are in progress in the US against Microsoft and in the previous finding against Microsoft regarding the automatic bundling of Internet Explorer with Windows the US courts found for Microsoft. The cynics in the computer world have, however, suggested that the difference in these findings may be based on political climate rather than legal standpoint.
BRIFFA Comment:
Although this case won't have much of an impact on the way that most of us use our PC it may be a beginning towards a wider spectrum of choice in the IT market. One thing is for sure it is nice that for once it isn't just users of Windows who receive the statement "You have performed an illegal operation and must shut down"!