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Monday, April 03, 2006

Microsoft claims EU breakthrough, rivals sceptical

US software giant Microsoft said there had been a breakthrough in its dispute with the European Commission at a hearing on antitrust fines levied by Brussels, but rivals and critics were sceptical.“As I said in the hearing, I believe that we have had a breakthrough,” Microsoft general counsel Brad Smith told reporters after the two-day hearing into the Commission’s plan to fine the company 2 million euros ($2.4 million) a day.
Europe’s top competition regulator accuses Microsoft of blocking competition by withholding information on its business software, while the company says it has done more than enough to aid rivals, most of them American.
At stake in the two-day closed hearing was whether Microsoft could convince the Commission not to impose the fines for non-compliance with its original March 2004 ruling. Participants outside the Microsoft camp said they heard nothing new in the company’s defence. “It was the same old stuff,” one said. “The Commission did not indicate in any way that it backed off (from) Microsoft.”
They were speaking on condition of anonymity after the EU hearing officer conducting the case ordered all parties to refrain from divulging the proceedings to the media.
A Commission spokesman said the EU executive would take time to reflect before deciding whether to proceed with the fines.
Brussels argues that Microsoft had not complied with a 2004 ruling that it had abused the dominant position of its Windows operating system to crush rival software makers.
Smith said Microsoft now had “greater clarity” on the antitrust case, helping to bring about a solution. His upbeat comments appeared to be the result of a late night meeting between Microsoft engineers and the independent trustee appointed to the case, to discuss in detail what more Microsoft could do to satisfy the EU regulators. The trustee and Microsoft have been in contact frequently, and supporters of the Commission said Smith’s comments suggested Microsoft realised it was not yet in compliance.
Participants said the trustee, Professor Neil Barrett, had made that point at the hearing on Friday. “He said they were not in compliance. That was the basic point he was making. It was clear as the light of day,” one said.

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