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Microsoft rebuffed in EU antitrust offer

OUT-LAW News, 18/02/2004

Microsoft has apparently been rebuffed in an attempt to settle a long running antitrust investigation by the European Commission into alleged abuse of its dominant position in the software market.

According to reports, the Commission was not satisfied by an offer to include rivals' software in a package of CDs included with new PCs.

Rumours abound over the outcome of the Commission's investigation into Microsoft. Launched in 1998, it is seeking to clarify and if necessary rectify allegations that the company failed to give competitors details of the hardware specifications necessary to integrate non-Microsoft software into corporate networks.

An official ruling is not expected until the spring, but rumours surfaced early this month that the decision will go against Microsoft.

At the time European Competition Commissioner Mario Monti confirmed that a draft decision has been reached, but he refused to reveal its details, nor comment on press speculation that the company will be fined €100 million – less than 0.4% of its global annual turnover.

According to a report on Tuesday in the Financial Times, Microsoft has recently offered to package rivals' software into CDs that will be included as standard with a newly purchased PC, only to have the offer rejected by the Commission. Reuters reports sources close to the Commission as saying that the Commission felt that the CDs were unlikely to be used.

Neither the Commission nor Microsoft have made any official comment.

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