Monday, September 17th 2007

Microsoft's Appeal in European Antitrust Ruling Rejected

The rejection of Microsoft’s appeal to the European antitrust ruling against it means that there remains, at least in theory, a significant threat to Microsoft’s way of doing business: bundling new features and products into its dominant Windows operating system.

In the United States, the Bush administration chose to settle the Microsoft antitrust case without challenging the company’s freedom to put whatever it wants in its operating system. But in Europe, Microsoft’s bundling practice became a key element in the European Commission’s antitrust suit.

The other impact of the European ruling, legal experts say, will be on Microsoft’s ability to guard some of its intellectual property. The court upheld the Commission’s order that Microsoft must share technical information with competitors so their server software works smoothly with Microsoft’s Windows desktop. The intent of the order was to prevent Microsoft from using its dominance of the desktop market to hinder competition in the server market from I.B.M., Sun Microsystems, Red Hat and others.

Microsoft said the Commission went too far, and that its order amounted to confiscating the company’s intellectual property. The order only applies to Europe. But Microsoft may have a difficult time containing the impact on the European market only. As a practical matter, the information it passes to I.B.M. or Sun in Europe will be hard to bottle up in one region of those global companies.

Read the Full StorySource: The New York Times
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9 Comments on Microsoft's Appeal in European Antitrust Ruling Rejected

#1
Darkrealms
by: Polaris573
Microsoft said the Commission went too far, and that its order amounted to confiscating the company’s intellectual property. The order only applies to Europe. But Microsoft may have a difficult time containing the impact on the European market only. As a practical matter, the information it passes to I.B.M. or Sun in Europe will be hard to bottle up in one region of those global companies.
So basically MS gives info to European divisions, changes happen in the US and Asia then MS sues the crap out of these companies for violating their rights in other regions?? {scratches head}
Anyone have a model of what would happen if MS pulled its software from Europe? Would that be a world wide crash or just an economic bashing? I would love to see a weather model on something like that (NOTE: I'd hate to see it happen).
Posted on Reply
#2
ghost101
If MS pulled out now they would be seriously screwed. They make $50bn each year with profits of around $3bn. If they pull out and lose 25% of that revenue, what do you think happens to profits?

I hope people understand what Microsoft is doing is illegal under both EU and AMerican law. Its just that the EU is pursuing it further and not settling because it would prevent them from doing anything on future breaches of competition.
Posted on Reply
#3
WarEagleAU
Bird of Prey
This is just funny. While our government says ok, give us some money and freebies, and we will let you alone, as you arent a terrorist and we dont care about the public or the consumers...

...whereas in the UK and the rest of Europe, they made them get a switch for the ass beating of their lives!!!
Posted on Reply
#4
Darkrealms
by: ghost101
If MS pulled out now they would be seriously screwed. They make $50bn each year with profits of around $3bn. If they pull out and lose 25% of that revenue, what do you think happens to profits?

I hope people understand what Microsoft is doing is illegal under both EU and AMerican law. Its just that the EU is pursuing it further and not settling because it would prevent them from doing anything on future breaches of competition.
I wasn't talking about MS revenue loss. I'm talking about operating system loss for all of Europe. "Oh, our operating system is illegal? Ok, we'll take care of that. Europe is no longer allowed to run any Microsoft products. You have 30 days to comply." MS creates Virus targeting every computer that accesses the internet and checks for European IPs and shuts them down. I was wondering on that hypothesis what would be the global and European impact. Would Europe fold and leave MS alone? I'm not saying MS is right but its a theory. Especially as we own licenses not products.
Posted on Reply
#5
panchoman
Sold my stars!
we're licensed to use the product though, i hope ms will have to refund all the people in europe their money back on the oses lmao. that would be so sweet. and bush would follow europe and screw ms over too lmao. then we all use goobuntu!! :roll
Posted on Reply
#6
TheGuruStud
I can only dream that M$ pulls product. It would finally be the beginning of the end for them.

And who expects bushie and friends' regime to do anything about M$. They're like best buddies with what they have in common.

P.S. I can't spell M$ any other way, it's just....unnatural :)
Posted on Reply
#7
Darkrealms
by: Darkrealms
So basically MS gives info to European divisions, changes happen in the US and Asia then MS sues the crap out of these companies for violating their rights in other regions?? {scratches head}
Anyone have a model of what would happen if MS pulled its software from Europe? Would that be a world wide crash or just an economic bashing? I would love to see a weather model on something like that (NOTE: I'd hate to see it happen).
So does this mean that I'm not going to get my weather model of MS deactivating windows in Europe and what would happen??
Posted on Reply
#8
ghost101
Well what would happen is that a huge vacuum would be filled by startups, OS X, Linux. There will be no crash since Microsoft cannnot actively remove the existing installations.

ASs for microsoft, their share price fell 1% on news of their defeat in appealing.
Posted on Reply
#9
Darkrealms
by: ghost101
Well what would happen is that a huge vacuum would be filled by startups, OS X, Linux. There will be no crash since Microsoft cannnot actively remove the existing installations.

ASs for microsoft, their share price fell 1% on news of their defeat in appealing.
The theory is they can't actively remove existing software. It would still cause a lot of problems.
Posted on Reply