EU Launches Investigation into Microsoft's Windows 2000 Amid Antitrust Concerns

Strategic Insights -

The European Union (EU) has launched an investigation into Microsoft's upcoming Windows 2000 operating system, citing concerns that the software bundle may breach EU antitrust rules by bundling PC operating system with server software. This move marks a new area of scrutiny for Microsoft, following similar probes in the US Department of Justice regarding the bundling of Internet Explorer with Windows 98. The EU has given Microsoft four weeks to respond to allegations that the new Windows 2000 bundling system could impede the growth of e-commerce.

Key Takeaways:

  • The EU investigation focuses on Windows 2000, Microsoft's upcoming operating system, scheduled for launch on February 17.
  • The probe centers on concerns that bundling a PC operating system with server software may breach EU antitrust rules.
  • This is a new area of scrutiny for Microsoft, following previous probes in the US Department of Justice regarding Internet Explorer and Windows 98 bundling.
  • The EU has invited Microsoft to respond to preliminary findings within four weeks.
  • Microsoft's senior managers have not yet reviewed the relevant EU documents.
  • The EU's investigation is part of its ongoing effort to regulate the software industry and promote e-commerce growth.
  • **Potential impact on Microsoft's business model**: The EU investigation could potentially change the way Microsoft develops and bundles its software products, potentially affecting its market share and revenue.
  • **Implications for the software industry**: The EU's actions may set a precedent for regulating software bundling and promoting competition in the industry.
  • **Partnership deals**: The EU is concerned that Microsoft's partnership deals may be used to restrict the growth of e-commerce.
  • **Windows 2000 features**: The operating system is designed to be network-friendly, similar to Windows NT.
  • **Mario Monti's role**: As the EU's competition minister, Monti has taken proactive steps to address antitrust concerns.

Statistics:

  • **FBI investigation timeline**: The investigation is expected to take at least four weeks.
  • **Microsoft's financial situation**: Microsoft's revenue and market share have not been directly affected by this investigation (yet).
  • **Software bundling in the EU**: This marks the second major investigation into software bundling in the EU (following the US Department of Justice probes).
  • **EU antitrust rules**: The EU is concerned that the bundling of server software may hinder e-commerce growth.

Sources:

  • Newsbytes.com, http://www.newsbytes.com
  • European Union, (press briefing by Mario Monti)