The New York Times The New York Times Business February 12, 2003  

Home
Job Market
Real Estate
Automobiles
News
International
National
Washington
Business
- Media & Advertising
- World Business
- Your Money
- Markets
- Company Research
- Mutual Funds
- Stock Portfolio
- Columns
Technology
Science
Health
Sports
New York Region
Education
Weather
Obituaries
NYT Front Page
Corrections
Opinion
Editorials/Op-Ed
Readers' Opinions


Features
Arts
Books
Movies
Travel
NYC Guide
Dining & Wine
Home & Garden
Fashion & Style
Crossword/Games
Cartoons
Magazine
Week in Review
Multimedia/Photos
College
Learning Network
Services
Archive
Classifieds
Book a Trip
Personals
Theater Tickets
NYT Store
NYT Mobile
E-Cards & More
About NYTDigital
Jobs at NYTDigital
Online Media Kit
Our Advertisers
Member_Center
Your Profile
E-Mail Preferences
News Tracker
Premium Account
Site Help
Privacy Policy
Newspaper
Home Delivery
Customer Service
Electronic Edition
Media Kit
Community Affairs
Text Version

Get 25 commission-free trades from Ameritrade.


Europe from $99! Hurry, ends 2/13!


Go to Advanced Search/Archive Go to Advanced Search/Archive Symbol Lookup
Search Optionsdivide
go to Member Center Log Out
  Welcome, cloud_reader

Rivals of Microsoft File Antitrust Complaint in Europe

By PAUL MELLER

BRUSSELS, Feb. 11 — An alliance of technology companies said today that it had filed a new complaint with European antitrust regulators about the Windows XP operating system of Microsoft, just as the regulators were nearing the end of an investigation into earlier versions of Windows.

The alliance, called the Computer and Communications Industry Association, said in a news conference today that Microsoft's dominance was stifling innovation and competition in the development of software for all kinds of digital devices, from computers to mobile phones. The alliance includes Sun Microsystems, a longtime foe of Microsoft, as well as companies like Nokia, AOL Time Warner, Eastman Kodak, Fujitsu and Oracle.

Amelia Torres, a spokeswoman for the European Commission, said that its competition department would look into the complaint. The alliance filed the 260-page submission at the end of January. She said the new complaint would probably not delay a ruling in the existing five-year investigation of Microsoft, expected by the end of June.

Advertisement



At the heart of that case is the commission's accusation that Microsoft leveraged its dominant position in operating systems software to win advantages in related markets, like network software. It also accused Microsoft of trying to wipe out the market for rivals' audio and video-player software programs by incorporating its own product, Media Player, into Windows, a practice known as bundling.

Thomas Vinje, a partner in the Brussels office of Morrison & Foerster who is a legal adviser to the alliance, said the risks to competition posed by Windows XP were much greater than those of previous versions of the operating system. "Microsoft is using well-honed practices to achieve its end, and it is using them with XP more than ever before," Mr. Vinje said.

In addition to Media Player, the new complaint asserts, Microsoft has bundled its e-mail software, known as Outlook Express; a video-editing program called Movie Maker; and instant-messaging software into Windows XP.

The complaint also accuses the company of using Windows XP to muscle into the market for mobile phone operating systems and to win unfair advantages for its online commerce system, known as .Net. Purchasers of Windows XP are steered toward signing up for a component of .Net, the Passport identity authentication system.

Another coalition of Microsoft's rivals, the Liberty Alliance led by Sun Microsystems, is working to develop an open-source alternative to the .Net Passport, which has drawn considerable criticism over privacy and data protection concerns. The group hopes to introduce its system next year.

"XP clearly violates European Union competition law," said Ed Black, president of the Computer and Communications Industry Association. "This complaint comprehensively details the myriad anti-competitive abuses of Microsoft that remain at the heart of their ongoing business strategy."

Tiffany Steckler, a spokeswoman for Microsoft, said the company could not comment in detail about the new complaint. Speaking generally, Ms. Steckler said: "It is up to the European Commission to decide what issues are relevant to its probe. We have always said we are eager to work with the commission to find a positive solution to the issues."

But she did say that "the allegations seem similar" to the ones the computer and communications alliance made against Microsoft in the United States.

Mr. Vinje disagreed, saying the new complaint goes far beyond the group's appeal against a decision last year by the United States Justice Department to conclude its antitrust case against Microsoft. That appeal is pending.

Microsoft's rivals did not file the new complaint hoping to drag out the old investigation, he said. "We want the commission to take a decision in the existing case as soon as possible," he said. "We hope it will set important precedents."

He noted that the original case's bundling accusation was very specific, referring only to Media Player, which has long since eclipsed its nearest rival, Real One Player, just as Microsoft's Web browser, Internet Explorer, long ago overtook Netscape Navigator.

"Unless the commission acts rapidly in these sorts of cases, competition law will be rendered meaningless in such fast-moving technology markets," Mr. Vinje said. "We are presenting this complaint in such a way that the commission can take action to preserve competition and innovation in these markets before the competitors are decimated."

He called the Web browser market an example of stifled innovation. "Look at Microsoft Internet Explorer. It is the same now as it was five years ago," Mr. Vinje said. "Microsoft doesn't need to innovate because there is no serious competitor to Explorer any more."

Defenders of Microsoft argue that computer users like and benefit from the convenience of a single software package incorporating everything from e-mail to video players, and that they feel safer using software from a single supplier because they encounter fewer problems with compatibility.

Even so, Mr. Vinje said, "the pattern among other software developers is towards interoperability."

Mobile phone software suppliers in Europe use open standards, he added, and their products "work perfectly together."

As for the advantages of software from a single source, Mr. Vinje said, obliging Microsoft to unbundle its programs and sell them as separate products would not impede computer manufacturers from installing all of Microsoft's offerings on their products if they chose.




Forum: Join a Discussion on Microsoft and Antitrust



As Broadband Gains, The Internet's Snails, Like AOL, Fall Back  (February 3, 2003)  $

TECHNOLOGY; Competitors Shape Strategy To Gain Edge In Web Services  (February 3, 2003)  $

Microsoft to Alter Online System to Satisfy Europe  (January 31, 2003)  $

Europe Said to Agree on Microsoft Privacy Issues  (January 30, 2003) 

Find more results for Microsoft Corporation and Computers and the Internet .



Doing research? Search the archive for more than 500,000 articles:




E-Mail This Article
Printer-Friendly Format
Most E-Mailed Articles
Reprints

Click Here to Receive 50% Off Home Delivery of The New York Times Newspaper.


Home | Back to Business | Search | Corrections | Help | Back to Top

Alt Text
Copyright 2003 The New York Times Company | Privacy Policy
E-Mail This Article
Printer-Friendly Format
Most E-Mailed Articles
Reprints



stoxbox


Recent Articles

Vivendi in Talks to Sell Game Unit to Microsoft (January 29, 2003)


Microsoft to Give Governments Access to Code (January 15, 2003)


Judge Drops Two Sun Claims in Suit Against Microsoft (January 11, 2003)


Microsoft Agrees to a $1.1 Billion Settlement (January 11, 2003)



Topics

 Alerts
Microsoft Corporation
Computers and the Internet
Sun Microsystems Incorporated
Nokia Corporation
Create Your Own | Manage Alerts
Take a Tour
Sign Up for Newsletters






U.S. vs. Microsoft: The Inside Story of the Landmark Case

Price: $24.95. Learn More.







You can now advance your skills with NYTimes.com's
Executive Education Center.
Choose from courses in an array of fields from Corporate Finance to Management to Pharmaceuticals.
Click here to access the site.