/ 24 March 2004

Microsoft rivals hail antitrust decision

Microsoft’s rivals lauded Wednesday’s European Union antitrust decision imposing a record fine on the software giant and ordering changes to the Windows operating system used in Europe.

”This decision is fundamentally significant because the European Commission has formally declared that Microsoft’s media-player bundling strategy is illegal and has established the guideposts for future bundling cases,” said Bob Kimball, vice-president and general counsel at RealNetworks.

RealNetworks was a key firm in the EU case because it complained that Microsoft’s ”bundling” of its media software for audio and video within the Windows operating system was an abuse of the Microsoft monopoly position.

”This is the first legal review of Microsoft’s media-player bundling practice. While we have not yet seen the complete decision, we support the European Commission’s efforts to provide European consumers with all the benefits of a competitive marketplace, including choice in digital media products,” Kimball added.

”RealNetworks welcomes the opportunity to compete on a more level playing field, because when that is the case, consumers have the benefit of innovation, and products like our RealPlayer 10 win.”

The EU ordered Bill Gates’s firm to offer a European version of its all-conquering Windows operating system without the Media Player program within 90 days.

And Microsoft was ordered to disclose ”complete and accurate” data to enable rival companies to offer low-end servers that can work with Windows within 120 days.

Server hardware and software maker Sun Microsystems also hailed the EU decision.

”This decision is important for consumers not only in Europe, but also for increased innovation and competition worldwide,” said Lee Patch, Sun’s vice-president for legal affairs.

”The commission found that Microsoft has abused its dominant position in desktop operating systems to create an unlawful advantage for itself in the work group server market.

”By requiring Microsoft to make disclosures that will allow other servers to comparably interoperate with Microsoft desktops and servers, the commission’s decision seeks to create a level playing field in the work group server marketplace, enabling competitors to deliver work group servers that can fully interoperate and therefore compete on the merits.

”This is enormously significant for consumers and for the industry,” Patch said. — Sapa-AFP