EU anxiety over Microsoft ruling

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By Matt Williams
- 13th September 2007

Competition commissioner Neelie Kroes faces a test of her credibility as Brussels awaits a crucial ECJ antitrust ruling against Microsoft.

The European commission is anxious about the outcome of Monday’s ruling; an appeal against a €497m fine imposed on the US company in March 2004.

"If we lose this one, we're in deep (trouble). It would put in question our ability to regulate competition in high-tech industries," said a commission official.

"The implications of this for the consumer are immense”, he added.

Brussels ordered the software giant to pay the record €497m fine and to unbundle its media player from its own Windows programme.

The company was also told to disclose details of its Windows software codes so that rivals could design compatible products.

An annulment of one or both of the commission’s rulings against Microsoft could be very embarrassing, given the time and money invested in the high profile legal battle.

Microsoft argues that the commission is unfairly restricting its ability to develop a wide range of software.

"We're very hopeful that the court will see things that way and will issue a ruling that protects the ability to innovate without risk of legal liability", said a Microsoft spokesperson.

The outcome will set an important precedent in determining the commission’s ability to take up similar cases against dominant companies.

UK ALDE MEP Sharon Bowles, who has been following the case in Luxembourg, said the ruling was “exceptional on a number of fronts.”

“If Microsoft's appeal is successful it will give the commission an enormous black eye, if not the result is likely to ripple across the entire industry. In reality I am certain the result will be a mixture,” added Bowles an expert in intellectual property.

“I would find it understandable if the commission win on the bundling but lose on interoperability. Another outcome that I could understand would be if the commission win on there being a competition issue, but their solutions being wrong. ”

“The fact that at present there are many rumours over the possible result arises from the level of secrecy over issues in EU competition cases."

“Only the commission and the court know everything and much is still in the dark to everyone else, and will remain that way. This means that we can all be left not really understanding the verdict when it does come.”

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