Microsoft's Antitrust Woes in Europe Accelerate

European Commission's landmark antitrust ruling is expected this week, but the company's legal troubles in Europe are far from over. Antitrust lawyers and officials say the new investigations will be handled much faster due to the setting of basic principles, with one case involving a wide-ranging complaint about the dominance of Windows, and another focusing on certain clauses in Microsoft's licensing contracts with computer makers.

Key Takeaways:

• The European Commission's five-year case against Microsoft Corporation is expected to be concluded this week, with a landmark antitrust ruling expected to set a precedent in the industry.
• Antitrust lawyers in Brussels say the ruling will speed up the handling of new investigations, particularly one involving a complaint about Microsoft's operating system Windows XP, which bundles software into the OS, leveraging its dominance into new markets.
• The Computer and Communications Industry Association accused Microsoft of bundling software into Windows XP, leveraging its strength in operating systems into Internet-related markets, and abusing Windows' dominant position.
• The European Commission is also investigating Microsoft's contracts with PC makers to determine if certain clauses are anticompetitive.
• Microsoft has announced that it will drop a "nonassert clause" in its contracts with PC makers, which forbids them from protecting any patent they may hold for software-related inventions.
• Antitrust lawyers stress the importance of speed in addressing antitrust abuse in the fast-moving tech industry, citing the delay in the US case which allowed Netscape to give up competing.

Statistics:

• The European Commission's five-year case against Microsoft Corporation is expected to conclude this week.
• The commission is expected to order Microsoft to offer PC manufacturers in Europe two versions of its Windows operating system: one with Media Player bundled in and another version without it.
• Microsoft will be expected to sell the unbundled version of Windows at a slight discount, perhaps around $5 to $10 less than the fully equipped version.
• The commission's investigation into Microsoft's contracts with PC makers began last fall.

Sources:

• Thomas Vinje, a competition lawyer with Clifford Chance, representing the Computer and Communications Industry Association.
• Tom Brookes, a spokesman for Microsoft in Brussels.
• Mark Ostrau, co-chairman of the antitrust group with the technology law firm Fenwick & West.
• RealNetworks Inc. and Apple Computer Inc., mentioned as able to take advantage of the commission's ruling despite potential delay.