Slashdot is powered by your submissions, so send in your scoop

 



Forgot your password?
typodupeerror
×
Windows Operating Systems Software Government Microsoft The Courts News

Microsoft Loses EU Anti-Trust Appeal 322

Kugrian writes "Microsoft has lost its appeal against a record 497m euro (£343m; $690m) fine imposed by the European Commission in a long-running competition dispute. The European Court of First Instance upheld the ruling that Microsoft had abused its dominant market position."
This discussion has been archived. No new comments can be posted.

Microsoft Loses EU Anti-Trust Appeal

Comments Filter:
  • Go Samba (Score:5, Interesting)

    by Marcion ( 876801 ) on Monday September 17, 2007 @08:23AM (#20634637) Homepage Journal
    The Court of First Instance's judgement, like the commission's before it, sees Samba as the means for competition, in the Work group server space (i.e. file servers, print servers, etc). All potential competitors to Microsoft are using Samba, (the commissions own research found that 98% of competing products in this space use Samba), so it is good that the commission and the CFI are keen to get the documentation from Microsoft in a form that open source projects such as samba can use.

    P.S. Shamless plug, I ranted a lot about this on my own site [commandline.org.uk]
  • by H4x0r Jim Duggan ( 757476 ) on Monday September 17, 2007 @08:29AM (#20634685) Homepage Journal
    Ignore the fines, they're nothing.

    The important thing is that when MS eventually publish their specs, they will not be allowed exclude free software from using them.

    This is what FSFE and Samba have been working for since 2001, not fines.

    http://fsfeurope.org/projects/ms-vs-eu/ [fsfeurope.org]
  • by gravos ( 912628 ) on Monday September 17, 2007 @08:29AM (#20634693) Homepage
    Good points all around.

    Though I do wonder what level of fine it would take for Microsoft to really change it's way of doing things instead of just making whatever paltry change the regulatory body required (like selling a version of Windows that probably no one is going to buy without IE bundled in).

    I wonder because even after some pretty hefty fines in the past they seem to have changed direction very little as a company.
  • by Anonymous Coward on Monday September 17, 2007 @08:30AM (#20634699)
    The facts of the case are old news, esp. media player bundling. What is new -- and alarming for anything potentially innovative or disruptive -- is Neelie Kroes (EU competition czar) saying that the desired outcome is for Microsoft to have 50% market share (or at least a significant reduction). That's putting the cart before the horse. What if Microsoft went open source and released a Vista UI based on a linux kernel -- would the EU still want Microsoft to have 50% market share and keep punishing them if they didn't?

    Quibble all you want about the merits of the law, the fines, today's decision, etc. (or don't) -- that's the right kind of discussion to have. It's when they show that their real goal is a desired outcome, regardless of the means, that I get upset as an entrepreneur.
  • by 140Mandak262Jamuna ( 970587 ) on Monday September 17, 2007 @08:44AM (#20634807) Journal
    Big as it is, 600 m$ is chump change for MSFT and it would shrug and treat it as cost of doing business. Further this creates a "rally around our flag" effect kind of support of MSFT. Many Americans would go, "The damned Europeans, the gall they have punishing a Red White an Blue company.." .

    What I would really like to see is that the customers of MSFT see that it is in their best interest in having an alternative to MSFT in the desktop, server, office documentation products arena that will benefit by perfect 100% compatible interoperability. No customer would buy a Samsung TV that can play only Samsung DVD player. But why these corporations don't demand such compatibility?

    One answer is that, MSFT tax is not very big. Just 40 billion dollars a year max. For most companies, payroll, medical insurance, office rent, furniture, liability insurance, transportation, travel etc cost more than office PC/laptop. So they are not looking for savings here.

    Second, companies only focus on the differentials with their competitor. Stated differently, Coke does not care how much it spends on pc/laptops and office software as long as its competitor, Pepsi, is not spending a significantly lower amount on the same category. This explains the herd like behavior of the corporations. No body looked to outsource to India till about year 2000. One did. Showed some possible cost savings. Whether or not the savings were real, that first company's investment in India is real. Suddenly every suit is asking, "what if it pays off big time for them? What if we get left behind. Let us play it safe, hedge our bets and let us also have a presence in India."

    I don't know when it will happen. But at some point some big company would make it a priority to have a second vendor in the office software arena, and invest a sum to show it is serious. Like a herd every suit who was asking, "What is our India strategy?" would be asking "What is our second vendor for office strategy?". Of course, not without some serious kicking and screaming and "Total cost of ownership" studies funded by MSFT. But when the corporate pendulum swings, it swings inexorably and usually it will go well past what is reasonable reach the other irrational extreme, corporations investing so much on "second vendor" strategy that the saving don't justify the investment. But that won't deter these suits, It never has.

  • by Anonymous Coward on Monday September 17, 2007 @08:49AM (#20634865)
    If it doesn't go to fix the situation then it is pointless. The EU should spend the money building their own software industry up and set their own standards. The US would then be forced into a competitive market.
  • by suv4x4 ( 956391 ) on Monday September 17, 2007 @08:50AM (#20634875)
    The biggest problem is that it took 10 years to get to this point, and Microsoft still hasn't disclosed the specs for how to make interoperable products.

    Maybe it won't matter a lot in another 10. Microsoft has abandoned its own back compat with Vista in many places and the businesses are denying Vista transition.

    In fact I've been in contact and read/heard plenty of opinions of private users, small and big businesses, government employees and they all don't want anything to do with Vista (which is increasingly hard given many vendors do NOT offer non-Vista machines, forcing businesses to purchase standalone XP licenses or use second hand hardware).

    More amusing are the comparisons I've heard about how fast Vista is: "slow as a dying dog", "as a overweight grandma on a treadmill", "turtle on vicodin", "turtle dipped in mud climbing uphills"...

    Microsoft's own software (Office 2003, VS 2005, etc.) isn't compatible with their own OS right now.

    Microsoft's a mess, and honestly, I do believe the EU lawsuit is a fiasco and not what we needed. What good is it they fined them nearly a billion. Will this help us somehow.

    I honestly would rather prefer they sued them for delivering unstable, incompatible, and a resource hog of an OS, and maybe even sue the hardware vendors for not consistently offering XP as an option across the range (wee see some half hearted attempts here and there, such as Dell offering XP to businesses, and not to consumers).

    This is a really pressing problem for millions of people worldwide. The vague problem of them including Media Player in Windows isn't that big, turns out (seeing that most sites use Flash / MP4 QuickTime for video anyway).

    I mean, they compete with their own Media Player, by introducing Silverlight. If it stiffled competition so much, what sense does it make competing with your own player. Apparently EU sees things oversimplified.

    Furthermore, MS would rather

    pay

    than lose their monopoly, and as a result, they will now have less money to put into proper development and thus indirectly stifle Microsoft's ability to put proper investment on bringing timely SP-s to Vista and XP (they got cash, but not so much cash that 700 million go unnoticed in their budget).

    All in all, whether you think it's too little too late, or like me, you think it's the wrong "victory" to begin with, nothing to cheer for in this decision of the EU court. Just more crap that will hit the fan.
  • by N3wsByt3 ( 758224 ) on Monday September 17, 2007 @08:52AM (#20634893) Journal
    While some may portray it as being an EU versus USA thing, it's actually much broader then that. To be sure; that sentiment *IS* there, and it certainly has played a role, especially concerning the popular support (the general EU IT-populace). It's doubtful however that the judges let themselves be swept away by any anti-americanism, however.

    I think it's as much a 'global corporation which tries to screw you over'-sentiment than anything else, and that's why a lot of open source people (also in the USA) are rejoicing. But... that sentiment played little to no role in the ruling neither.

    Basically, it's quite simple: they went against EU law and were dragging their feet to comply. No judge likes THAT.

    Personally, I think they deserve a much higher penalty. The EU commision is way to soft on them - actually softer then on big EU corporations they tried to deal with in the past. And also, the 'provide an XP without the mediaplayer'-thing was outright stupid. *Everyone* with half a brain could see this would have no effect. First of all, it's too limited in scope: what about win-OSses other than XP, what about all those other applications other then the media player? Is the EU going to fight a 10 year struggle over every OS and application that comes along and has the same issues as was now decided on?

    And apart from that: it's just suilly. Nobody is going to buy XP without mediaplayer if, for the same price, one can get one *with* it. By now, this obvious deduction has been proven right. No, what they should do is making it obliged that *every* OS MS makes gives the oportunity to install (or not) any application that comes with it (browser, media player, virusscanner, etc.). That way, you let consumers decide, and you give the opportunity to choose other applications instead of the windows-included-ones.

    Such a ruling would have made better sense, coppled with opening up their code for compatibility and an even huger fine would make it clear to MS that no corporation is above the law, not even a giant USA one with lots of money and lawyers.
  • by downix ( 84795 ) on Monday September 17, 2007 @08:55AM (#20634931) Homepage
    The problem is, you raise the fines, you only truely hurt the small guy. Finland went with a "fine is a percentage of yearly earnings" and it helped them a lot. But, money is also only money to some people. What about restrictions, such as putting a flow-control valve. "Sorry Mr. Smith, you only are allowed 12 gallons per day, so use them wisely" for those who are chronic violators, similar to what is done with drivers licenses.
  • by Anonymous Coward on Monday September 17, 2007 @08:59AM (#20634973)
    Microsoft must have the dumbest lawyers. There has always been a media player since Windows 3.0. Admittedly it could only play .avi & .wav files and CD's but now Windows Media Player has evolved to support new encoding formats and streaming media. Now EU the says Microsoft can't include a media player with Windows. In Windows 95, Microsoft included the setup options for other file & print services, namely Novell Netware and Sun PC-NFS. Those vendors refused to support newer versions of Windows on the date that the new versions released so it was impossible for Microsoft to include the setup options for Novell Netware and Sun's PC-NFS in Windows 2000. So the EU says that Microsoft is abusing its dominant Windows client market share to extend its market share into Windows Servers. Microsoft extended the SMB protocol with things like enhanced security, integration with kerberos, encryption and a distributed file system to take advantage of features in Windows Server that were innovative and added value for customers. The SMB extensions did not prevent Samba file & print servers from serving Windows clients as the SMB protocol enables clients and servers to negotiate with one another based on their capabilities. Now the EU forces Microsoft to give it's IP to Samba so that they can copy the features present in Windows Server. Where is the innovation from Samba ? Active Directory is a multi-master, loosely coupled distributed directory service, that integrates LDAP, Kerberos and NTLM into a single easily deployed and managed service. Other LDAP and Kerberos implementations can interoperate with AD. Unlike other ldap directories that are not multi-master (OpenLDAP, Sun One), Active Directory has an innovative replication mechanism. Now the EU is forcing Microsoft to give it's IP to competitors such as Open LDAP and Sun so that they can replace Windows Server. All the innovations on Windows Server are designed to provide distinct benefits to customers. The EU ruling makes no sense whatsoever ! Micosoft should sack Brad Smith and his bunch of crony lawyers.
  • by Dolda2000 ( 759023 ) <fredrik@dolda200 0 . c om> on Monday September 17, 2007 @09:11AM (#20635115) Homepage

    What good is it they fined them nearly a billion. Will this help us somehow.
    (To begin with, let me tell you about a friend of mine: Mr. Question Mark [penny-arcade.com]. He's happy to help whenever you have a sentence phrased like a question.)

    However, maybe it is good that they fined them nearly a billion. I, too, doubt that that alone will make much of a dent in Microsoft's budget, but maybe it sets a precedent, and other nations may start doing the same. South Korea, for instance, springs to mind. One billion dollar fine might not make much, but if a large enough number other nations start fining Microsoft for anti-trust violations, they might have to do something real about it. Even if these nations are just out for the money, they still need some legal pretext in order to act, so if Microsoft will wish to avoid it, they might actually have to comply with the law or retract from business in those nations.

    I know I might just be overly optimistic, but one must keep one's hopes up, right?

    Either way, I'm much more optimistic about the "sharing of server protocols" part of the judgment. It would be great being able to use Samba as an AD controller.

  • by SL Baur ( 19540 ) <steve@xemacs.org> on Monday September 17, 2007 @09:29AM (#20635283) Homepage Journal

    and maybe even sue the hardware vendors for not consistently offering XP as an option across the range
    As if offering Microsoft Windows XP across the board blunts the monopoly. In freer countries, one can walk into a random computer store and buy notebook computers without any Microsoft at all (and I have the store datasheets in hand to prove it), but not in San Jose, California. There's a reason for that beyond simple supply and demand economics.
  • by N3wsByt3 ( 758224 ) on Monday September 17, 2007 @09:46AM (#20635499) Journal
    "You split the company up or write fines. Which leaves you not with the desired competitive atmosphere but a wounded monopoly, still a monopoly nevertheless."

    Does AT&T ring a bell, mayhaps?

    The company got split up, exactly as you say, and it's monopoly was over, and competition and innovation were abound.

    While it may be true that a company strives to become a monopoly, it's equally true the state should strive to *not* let a company become a monopoly (or at least, deal with their abusive because of the monopoly-position). Quod licit Jovis non licit bovis; a surprising outcome has nothing to do with it.

  • Sign of pragmatism? (Score:3, Interesting)

    by mattr ( 78516 ) <mattr&telebody,com> on Monday September 17, 2007 @09:55AM (#20635603) Homepage Journal
    FWIW, in Yahoo's "Maboo" Japanese Internet cafe chain yesterday I noted they stopped including MS Office and instead their computers all feature OpenOffice.org icons for the OOo apps prominently on the desktop with a big circle around them. This from probably the No. 1 or 2 hugest pro-MS country in the world. Maboo is cheap among Internet cafes, although a more upscale and expensive chain (aprecio) uses MS. It is a dollars per hour difference.
  • Convicted = costly (Score:2, Interesting)

    by proton ( 56759 ) on Monday September 17, 2007 @10:21AM (#20635953) Homepage
    assuming the conviction sticks after 20 more years of appeals, this opens the door wide open for others to claim damages for microsofts practises. anyone even slightly suffering by their practises can just point at this one and say 'look they were convicted, now give me my share'. in that sense whatever damages they get in this initial judgement should be trivial compared to the following lawsuits of anyone with a european branch.

To the systems programmer, users and applications serve only to provide a test load.

Working...