ravi wrote:

> 
> set pen-l mail postpone
> 
> 

terribly sorry about that (and for this email also). that was supposed
to go to the list processor, not the list. to not entirely waste this
message, here's an interesting piece of news regarding EU investigation
of microsoft.

        --ravi


http://news.lycos.com/news/story.asp?section=MyLycos&pitem=BUSINESS%2DTECH%2DMICROSOFT%2DEU%2DDC&rev=20010830&pub_tag=REUTG

EU Probes Microsoft Use of Media Player by David Lawsky

Thursday, August 30, 2001 12:46 a.m. EDT

[Reuters] BRUSSELS (Reuters) - The European Commission is investigating
whether Microsoft Corp is trying to damage rivals by embedding its
proprietary audio/video software, Media Player, into its Windows
operating system, it said on Thursday.

The Commission, announcing an expansion of an earlier investigation
into Microsoft, said Media Player cannot be readily removed by computer
makers or consumers.

It said that places at a disadvantage rivals in the market for watching
video and listening to audio over the Web like Real Network's
RealPlayer or Apple's QuickTime.

The Commission said it is also investigating whether one version of the
firm's operating system, Windows 2000, is designed to work better with
its own servers than those of rivals.

The Commission said it was combining the newer case, in which it issued
a formal Statement of Objections, with a similar case covering Windows
98.

For now, however, the Commission said it was stopping short of
expanding its investigation to cover a new Windows version, XP. A
number of firms say that Windows XP excludes them in the same way -- or
worse -- than earlier systems did.

"At this stage the Commission is not conducting an investigation into
Windows XP," Commission spokeswoman Amelia Torres said in response to a
question at the Commission's daily briefing. No interim measures would
be taken against the company while the probe went on.

The company expressed confidence it would be cleared by the Commission
of any wrongdoing.

"We are confident that once it has completed its investigation, the
European Commission will be assured that we run our business in full
compliance with EU law," said Jean Philippe Courtois, president of
Microsoft in Europe, the Middle East and Africa.

Microsoft stock was down nearly $3 in morning trading to $57.26 in a
weak market.

Competition Commissioner Mario Monti said the investigation was
necessary to create a fair marketplace in an arena vital to computing
and communications.

"Server networks lie at the heart of the future of the Web and every
effort must be made to prevent their monopolization through illegal
practices," Monti said in a statement.

"The Commission also wants to see undistorted competition in the market
for media players," he said.

Spokeswoman Torres said the Commission's case was unrelated to actions
in the United States, where an appeals court ruled unanimously that
Microsoft illegally abused its monopoly power.

The appeals court threw out a plan to break up the company in part
because a lower court judge made procedural errors. Next month in
Washington a new judge will consider what actions should be taken to
remedy the firm's illegal practices.

SERVER COMPETITION

Microsoft is competitive but not dominant in the market for inexpensive
servers. Servers are computers that help run PC networks, storing
files, printing documents, operating Web sites and providing Web
access.

A large number of servers use one of the Unix family of operating
systems, such as Linux, but experts say Microsoft's share has grown
steadily, from about half the market to nearly 60 percent.

Microsoft designed its systems to work well with Microsoft server
software but the Commission said it has withheld necessary information
from rivals. It said those who want to use rivals' products must still
buy Microsoft servers.

"If customers choose not to use an all-inclusive Microsoft scenario for
PCs and servers, but decide to use competing server products they are
forced to bear a double cost," the Commission said.

The company's strategy may "artificially drive customers toward
Microsoft server products, reducing choice to the detriment of the
final customer," the Commission said.

Media Player is software that permits the viewing of moving pictures or
listening to audio, without waiting for it to download first.

The Commission said Microsoft is depriving "PC manufacturers and final
users of a free choice over which products they want to have on their
PCs, especially as there are no ready technical means to remove or
uninstall the Media Player."

John Frank, an associate general counsel with Microsoft in Paris, said
his firm's Media Player uses a format that is "far more open than our
competitors due to our broad licensing."

He said it was helpful for programmers to have Media Player built into
the system.

Reply via email to