Est. 2min 23-10-2007 (updated: 28-05-2012 ) microsoft.jpg Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram Microsoft has conceded defeat in the antitrust row that has divided the software giant and the European Commission since 1998, accepting full compliance with the terms of a 2004 ruling allowing competitors access to information needed to build software compatible with its predominant Windows operating system. On 22 October 2007, Kroes announced that “as of today, the major issues concerning compliance have been resolved”. The terms of an agreement with the Commission concern: Interoperability information on workgroup servers: Kroes said that “Microsoft has substantially respected” the obligation to provide complete and accurate technical documentation. She stressed, however, that “Microsoft’s obligation to document its protocols is an ongoing one – the documentation needs to be maintained as its products evolve, and new issues may arise once it is being used by developers”. The Commission considered that the licensing fees for this information, which is needed in order to build products compatible with company servers running the Windows operating system, were unreasonably expensive. Microsoft had been demanding 5.95% of revenues from those products when the information included patents, and 2.98% when no patents were included. Those fees have now been lowered to 0.4% and a one-time payment of €10,000 respectively. Microsoft has accepted that licensees are entitled to obtain effective remedies, including damages, from the High Court in London, when information received from Microsoft is incomplete or inaccurate. Open-source developers: Microsoft refused to disclose interoperability information to programmers behind open-source projects such as the Linux operating system, the Mozilla Firefox browser or the Apache server, citing fears that this would mean that the information would then be made available for free to everyone. Kroes said: “Microsoft will now make this information available, with licensing terms that allow every recipient of the resulting software to copy, modify and redistribute it in accordance with the open source business model.” She went on to say: “I told Microsoft that it should give legal security to programmers who help to develop open-source software and confine its patent disputes to commercial software distributors and end users. Microsoft will now pledge to do so.” Read more with Euractiv Court scraps Germany's 'Volkswagen law'Germany will lose its 'golden shares' in car manufacturer Volkswagen, following a ruling by the European Court of Justice which says that the 1960 'VW-Gesetz' contradicts EU rules on the free movement of capital. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters PositionsCompetition Commissioner Neelie Kroes stated: "Put together, these changes in Microsoft's business practices, in particular towards open-source software developers, will profoundly affect the software industry. The repercussions of these changes will start now and will continue for years to come." She warned, however: "I want to stress two points. First, Microsoft has ongoing obligations to continue to comply with the 2004 decision. If new issues arise in relation, for example, to the completeness and accuracy of the interoperability information, then Microsoft must address those issues immediately. Second, the March 2004 decision, as confirmed by the Court of First Instance last month, also sets a precedent with regard to Microsoft's future market behaviour in this and other areas. Microsoft must bear this in mind." Microsoft issued a press release stating: "At the time the Court of First Instance issued its judgment in September, Microsoft committed to taking any further steps necessary to achieve full compliance with the Commission's decision. We have undertaken a constructive discussion with the Commission and have now agreed on those additional steps. We will not appeal the CFI's decision to the European Court of Justice and will 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." Thomas Vinje, Counsel for the European Committee for Interoperable Systems (ECIS), an industry alliance of software makers opposing Microsoft in the competition case, commended the Commission "for their diligence in pursuing this issue over the last eight years". However, Vinjew warned: "European consumers will only benefit if Microsoft complies fully with its obligations in both letter and spirit so that real competition is finally reintroduced with respect to products subject to the Commission's March 2004 decision." Benjamin Henrion, Brussels representative of the open-source association FFII, said: "This deal is a big win for Microsoft. The Commission does not understand how open source works. It naively accepted Redmond's assurances that they will play fair. It is a sham. They have planned for years to control the open source economy through software patents. This scheme now moves ahead, thanks to the Commission's haste to make a quick deal. Kroes has ensured that European Patent Office software patents - which the EU rejected in 2005 - will now strengthen the monopolist's grip for years to come." BackgroundIn a case that had started in 1993 following a complaint from software company Novell about Microsoft's practice of withholding information about server protocols needed for building interoperable products, the European Commission issued a preliminary ruling in 2003, which ordered Microsoft to: Offer a version of Windows without Windows Media Player, and; provide the information necessary for competitors on the desktop server market to ensure full compatibility with Windows desktops and servers. Citing ongoing abuse by Microsoft, the Commission imposed, in March 2004, a fine of €497 million, the largest ever in the history of the EU. Microsoft paid the fine in full in July 2004, but complained at the same time to the European Court of Justice. In September 2007, the Court largely upheld the Commission's ruling on Microsoft. Following the ruling, Microsoft CEO Steve Ballmer got in touch personally with Competition Commissioner Neelie Kroes. Over dinner in Holland, both reached agreement over the path to Microsoft's compliance with the Commission's ruling. Further ReadingEuropean Union Streaming video, MP3 Commission (Press release):Antitrust: Commission ensures compliance with 2004 Decision against Microsoft(22 October 2007) Commission (Memo):Antitrust: Commission ensures Microsoft’s compliance with the 2004 Decision - frequently asked questions(22 October 2007) DG Competition:Antitrust cases - Microsoft Business & Industry Microsoft:Statement on Compliance with European Commission 2004 Decision(22 October 2007) European Committee for Interoperable Systems:ECIS welcomes new milestone in Microsoft case(22 October 2007) Foundation for a Free Information Infrastructure (FFII):EU tells open source to start paying MS patent tax(23 October 2007) Press articles MSNBC:Microsoft concedes defeat in EU battle(22 October 2007) Financial Times:EU decision sees narrower window for Microsoft(22 October 2007) Guardian:Microsoft gives up three-year battle to keep Windows closed to rivals(22 October 2007) BusinessWeek:Endgame for Europe's Microsoft Case(22 October 2007) International Herald Tribune:Microsoft throws in the towel in fight with EU(22 October 2007) International Herald Tribune:Ruling on Microsoft reflects EU's global reach(22 October 2007) Deutsche Welle:Microsoft to Comply With EU Antitrust Measures(22 October 2007) Le Monde:Microsoft se plie aux conditions européennes(22 October 2007) Le Figaro:Microsoft renonce à faire appel en Europe(22 October 2007) L'Express:Microsoft plie enfin devant les exigences de Bruxelles(23 October 2007) Reuters:Microsoft verspricht EU Einhaltung aller Auflagen(22 October 2007) AFP:Microsoft lenkt im Streit mit EU-Kommission ein(22 October 2007) Blogs Philippe Aigrain:Bitter victory?(22 October 2007) Digital Majority:Microsoft finally defeats EU competition ruling with patents(23 October 2007) Groklaw:Microsoft, antitrust and innovation(27 September 2007)
