The Commission has been investigating Microsoft since 1998, when
competitors accused the company of failing to disclose hardware
specifications necessary to integrate non-Microsoft software into
corporate networks.
In a statement yesterday the Commissioner admitted: "We made
substantial progress towards resolving the problems which have
arisen in the past but we were unable to agree on commitments for
future conduct."
"In the end," he said, "I had do decide what was best for
competition and consumers in Europe. I believe they will be better
served with a decision that creates a strong 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."
Microsoft also confirmed that negotiations had collapsed. "I
believe we reached agreement on the issues of the case," said CEO
Steve Ballmer. "But we were unable to agree on principles for new
issues that could arise in the future."
"We worked very hard to try to resolve these issues without
litigation," Ballmer added. "Because of the tremendous value we
attach to our relations with governments all across Europe, we made
every possible effort to settle the case, and I hope that perhaps
we can still settle the case at a later stage."
The later stage to which he refers could come when Microsoft
appeals the imminent ruling to the European Court of Justice – a
process that can last three or four years.
The Commission's draft ruling has been circulating Commission
offices over the past few months, and reports predict that a fine
will be imposed and the Windows Media Player will be untied from
Windows. This means that Microsoft would be required to offer its
European customers a version of Windows without Windows Media
Player.
The ruling is also likely to require Microsoft to reveal more
source code, to allow rivals such as Sun Microsystems to achieve
full interoperability with Windows PCs and servers, and thereby –
at least in theory – compete on a level playing field.
The proposed sanctions received the unanimous backing of the 15
Member States last week, albeit the details remained confidential.
A further meeting of Member State representatives is set for
Monday, to approve an appropriate level of fine in addition to the
sanctions. It is expected that the draft decision will then go
before the Commission for formal adoption on 24th March.
