Tuesday October 21 10:22 AM EDT
EU Probing Microsoft Internet Contracts
BRUSSELS (Reuters) - The European Commission is investigating contracts
between Microsoft and European Internet service providers, Commission
sources said today.
The sources, who said that any conclusions on the probe were months away,"
added that the European Union executive had been cooperating closely with
United States antitrust authorities regarding Microsoft's Internet
practices.
The U.S. Justice Department accused Microsoft of using its Windows
monopoly" to force computer makers to include the Microsoft Internet
browser in pre-loaded software, putting rivals such as Netscape
Communications ., at a competitive disadvantage.
The Justice Department further asked a federal court to slap a $1 million a
day fine on Microsoft for as long as the alleged violations continue.
The Commission has been probing similar practices in Europe on its own
initiative, the sources said, adding that it had received no complaints
about Microsoft's incursion in the Internet.
Its investigation is focusing on contracts with Internet service providers
who have licenses for Microsoft operating system software.
It (Microsoft) cannot oblige licensees to also take a license for another
product," a source said.
The sources stressed that under a 1994 undertaking given to the Commission
by the U.S. software firm, the company is allowed to develop products to be
integrated in its operating systems. But it cannot force licensees to buy
other products in return for getting its popular software licenses.
This sort of practice could have the same effect as those at stake in the
U.S. investigation.
In the U.S., Microsoft was accused of forcing manufacturers to accept its
Internet Explorer as a condition of receiving the company's Windows 95
software, which equips over 95 percent PCs in the world.
The Commission sources said the Commission was probing a series of
contracts and it would have to inform the company of its grievances, if
any, before deciding whether to take any action.
The Commission sent the company based in Redmond, Washington, a so-called
statement of objections about six months ago about licensing agreements
after it received a complaint, Commission sources said last week. This
probe, which is part of about a dozen Microsoft-related investigations in
Europe, does not concern the Internet.
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Bill D'Arcy
billg@netinfo.com.au
"Simplicity is the key to truth."
Bloke in the pub