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Image header Agence Europe
Europe Daily Bulletin No. 8037
Contents Publication in full By article 10 / 28
GENERAL NEWS / (eu) eu/competition

Commission sends further statement of objections to Microsoft on the subject of Windows 2000 and Media Player

Brussels, 30/08/2001 (Agence Europe) - The European Commission has opened a new procedure against Microsoft, sending it a statement of objections on the interoperability of the Windows 2000 operating system, launched in February 2000, and the integration of "Media Player" in the Window systems. The competition services consider that Microsoft is making abusive use of its dominant position on the operating systems market, the interface between PCs and software, in order to also seek to dominate the server market.

The Commission mainly reproaches the US multinational for: 1) concealing essential information from the distributors allowing them to integrate the Windows operating system with other software for services not supplied by Microsoft (technical information on the interface, Windows source code, etc.); 2) granting licenses for Windows 2000 in an abusive manner, and in essence forcing users to use software for Microsoft servers at the same time as they buy Windows 2000; 3) linking its product "Media Player" (allowing to visualise and listen to audio and video files) to its Windows operating system. "Microsoft may thereby deprive PC manufacturers and final users of a free choice over which products they want to have on their PCs, especially as there are no ready technical means to remove or uninstall the Media Player product", notes the Commission in its press release. The United States has attacked Microsoft on a similar problem, concerning the integration of Navigator Netscape in Microsoft operating systems for PCs. "We have informed the United States of our procedure" but the two inquiries are quite separate, Amélia Torres, spokesman for Competition Commissioner Mario Monti told the press.

On the basis of a complaint field by Sun Microsystems, the Commission had already sent a letter of objections to Microsoft in August 2000, on the problems of granting licenses and information on interfaces for operating systems dating back to before Windows 2000. After an inquiry was opened on Windows 2000 in February 2000, the Commission now specifies its observations concerning the interoperability and integration of Windows 2000 and Media Player. There is no interface between this procedure and the launching of the latest Microsoft "Window XP" system and it is out of the question to request "postponement of the launching of this system", said the spokesperson.

Microsoft has two months in which to answer the Commission's objections and should request a hearing before the end of the year, said the spokesman. "Server networks lie at the heart of the future of the Web and every effort must be made to prevent their monopolisation through illegal practices. (…) The Commission is determined to ensure that the Internet remains a competitive marketplace to the benefit of innovation and consumers alike", Commissioner Mario Monti said.

The "Computer & Communications Industry Association", which notably includes Sun Microsystems, AOL, Fujitsu, Nokia and NT&T among its members, immediately published a press release to welcome the Commission's decision. Ed Black, CCIA President, said that Microsoft's strategy was to use the lever of its monopoly on Windows to extend to all markets one after the other. He recalled that the "Commission's investigation focuses on the workgroup server market comprised of less powerful and less expensive servers that are typically used to enable groups of people to share files, send e-mails, share a printer, or connect to the Internet". He regretted that "Microsoft's share of this market is now approaching 60% worldwide".

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