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Image header Agence Europe
Europe Daily Bulletin No. 8669
Contents Publication in full By article 13 / 50
GENERAL NEWS / (eu) eu/competition

Negotiations with Microsoft fail - Monti announces decision creating legal precedent

Brussels, 18/03/2004 (Agence Europe) - After a five-year investigation, numerous hypotheses by the media and intense negotiation at the very highest level until the very last minute, the Microsoft issue has finally been settled by European competition authorities and Commissioner Monti's verdict is without appeal. "I'd just like to inform you that a settlement on the Microsoft case has not been possible. I therefore intend to propose to my colleagues in the Commission next Wednesday to adopt a decision, which has already received the unanimous backing of Member States", he told the press on Thursday.

The Commissioner nonetheless welcomed the "constructive and cooperative spirit displayed by Microsoft in the last few weeks". Mario Monti specified that, with Microsoft, they had examined at length the possibility of a solution to the problems identified but that, despite considerable progress made, it was unfortunately not possible to "agree on commitments for future conduct", and that he had therefore to decide "what was best for competition and consumers in Europe". The Competition Commissioner stressed that the decision would create a legal precedent. "It is essential to have a precedent which will establish clear principles for the future conduct of a company with such a strong dominant position in the market", he remarked. Mario Monti announced he would attend in person to comment on the decision to be officially disclosed on 24 March, at the same time as the amount of the fine.

Microsoft regrets negotiations, which took place in a "constructive" spirit, resulted
in failure, and is expected to appeal decision

Steve Ballmer, Executive Director of Microsoft, regretted the fact that negotiations with the Commission, in which he had personally invested great effort, had resulted in impasse. After the fashion of Commissioner Monti, he welcomed the "professionalism" and the "constructive nature of the discussions" and stressed that, although an agreement had been found on the current problems, no consensus was possible on future contracts. "I believe we reached agreement on the issues of the case, but we were unable to agree on principles for new issues that could arise in the future", Mr Ballmer said in a press release. He assured they had "worked very hard to resolve these issues without litigation". The businessman promised that, despite the failure of talks with the Commission, Microsoft would make "every possible effort" so that "perhaps we can still settle the case at a later stage" given the "tremendous value we attach to our relations with governments all across Europe". Microsoft, however, did raise the spectre of an appeal before the courts. "Perhaps the courts will provide the clarity that is necessary to resolve these issues. Today is just another step in what could be a long process", said Brad Smith, Vice-President of Microsoft.

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