Following a European Commission investigation, Microsoft has agreed
to modify its relationship with two partner companies, in order not
to exercise undue influence over their choice of set-top box
technology.
Last year, Microsoft agreed to reduce its joint controlling
position in UK cable TV operator Telewest to a simple minority
interest following an investigation by the Commission. The
Commission then decided to examine Microsoft's strategic
investments in other leading European broadband cable operators:
Dutch-based UPC, NTL of Britain and TV Cabo of Portugal. In two of
these companies (UPC and NTL), the investment was accompanied by
the setting up of a joint Technology Board that made binding
recommendations as to the technology decisions of the cable
company.
In order to avoid discussions on the status and powers of these
Technology Boards, Microsoft agreed with one cable operator to
abolish the Technology Board completely and with the other cable
operator to change the Technology Board into an Industry Technology
Forum that will be equally open for competing suppliers of set-top
box technology.
The Commission announced yesterday that it is happy with these
modifications and considers them satisfactory to end the current
investigation into the involvement of Microsoft in the emerging
digital cable markets in Europe. The Commission added that it does
not want to prevent these companies from buying the new Microsoft
products for digital interactive television, but wants to make sure
that new technologies are brought to the consumers on fair and
equal terms.
