EU Aims to Open Door in Windows
Going beyond Microsoft Corp.’s settlement of U.S. antitrust charges, the European Union wants to force the software giant to offer computer makers a version of Windows without any multimedia program to give rival companies a better shot at getting their products on consumers’ desktops, sources said Wednesday.
Such an order -- expected this month barring a last-minute settlement -- would be sure to be instantly challenged in European courts by Redmond, Wash.-based Microsoft. The company contends that removing its Media Player program would compromise other parts of its flagship operating system.
Taking out Media Player also could undermine Microsoft’s long-term strategy of keeping Windows on top by incorporating new functions, which it says benefits consumers.
Rivals including Netscape Communications Corp. and RealNetworks Inc. repeatedly have challenged the practice as unfair competition.
European Commission spokeswoman Amelia Torres refused to comment on specific remedies being sought.
But, she said, “the draft decision contains clear remedies to the identified illegal conduct, remedies which will restore a competitive marketplace for consumers in Europe.”
A Microsoft spokesman also declined to comment on details, repeating only that the company was “working actively with the European Commission toward an amicable settlement of this case.”
The EU has already made a preliminary finding that Microsoft violated EU competition law by bundling its multimedia software into Windows, and by failing to provide competitors in the server market with enough programming code to allow their products to operate as well with Windows as Microsoft’s own.
To resolve the first abuse, the draft decision sent to national regulators for review last month would require Microsoft to offer computer manufacturers two versions of Windows: one with Media Player and one without, according to sources familiar with the case, speaking on condition of anonymity.
The European Commission, which conducted extensive market surveys a year ago, believes that many manufacturers -- and content providers -- are uncomfortable relying solely on Microsoft and and wants to give rivals such as RealNetworks’ RealOne player and Apple Computer Inc.’s QuickTime a better shot.
Microsoft could keep its Media Player in Windows products sold directly to European consumers, avoiding the difficulty of having to police what version was sold where.
Although the order would apply only to computers sold in Europe, EU Competition Commissioner Mario Monti said the market was big enough to affect Microsoft’s behavior worldwide.
Microsoft had sought to interest the European Commission in a solution in which it would include rival players on a CD-ROM packaged with Windows that consumers could install if they wanted -- a solution rejected by the panel as placing too much burden on consumers.
It also has contended that the EU’s concerns were addressed by the 2001 U.S. settlement.
Microsoft shares Wednesday fell 2 cents to $26.37 on Nasdaq.
