Microsoft drops appeal of European antitrust case template_bas template_bas The software giant, which faces a $1 billion fine, will make some of its Windows operating system code available so developers can better design products for it. By Jim Puzzanghera, Los Angeles Times Staff Writer 11:43 AM PDT, October 22, 2007 WASHINGTON -- Microsoft Corp. will drop its appeal of a long-running and costly European antitrust case and make some of its highly guarded software code available at low prices so developers can better design products that work with the Windows operating system, European officials said today.
The decision came after Europe's second-highest court last month rejected Microsoft's appeal of a 2004 antitrust decision that had led to a record $703-million fine for abuse of its dominance in computer operating systems. On top of that fine, the European Commission in 2005 started levying a daily noncompliance fine against Microsoft that has brought the total to more than $1 billion. Running out of legal options, Microsoft agreed to abide by the 2004 decision, ending a case that began in 1998, said Neelie Kroes, European Commissioner for Competition Policy. "Now that Microsoft has agreed to comply with the 2004 decision, the company can no longer use the market power it derived from its 95% share of the PC operating system market and 80% profit margin to harm consumers by killing competition on any market it wishes," she said in a written statement. Kroes said she had been in "almost daily contact" with Microsoft Chief Executive Steve Ballmer over the last two or three weeks in an attempt to resolve the case. Microsoft agreed to drop its appeal and provide information to software developers to allow their products to work with Windows. Microsoft had agreed to provide the information before but at costs that European officials said were "wholly unreasonable," Kroes said. Microsoft said in a statement that it would "continue to work closely with the commission and the industry to ensure a flourishing and competitive environment for information technology in Europe and around the world." The Redmond, Wash., company will lower its fee for a worldwide license to use its software code, from 5.95% of the requesting company's revenue to just 0.4%. Microsoft also dropped its demand for a royalty of 2.98% of the money made from software developed using Microsoft's protocols. Now, companies will have to pay only a one-time fee of 10,000 euros, or about $14,161. Microsoft also will make its code available to open-source developers, such as those that design applications for the Linux operating system, under terms that allow other users of the software to copy and modify it. "Microsoft's obligation to document its protocols is an ongoing one -- the documentation needs to be maintained as products evolve and new issues may arise once it is being used by developers," Kroes said. "But as of today, the major issues concerning compliance have been resolved." Microsoft officials declined to comment. [EMAIL PROTECTED] -- http://mail.python.org/mailman/listinfo/python-list
