Microsoft, deadlocked with the US Department of Justice, could be
running into deeper trouble with the European Union
Microsoft faces EU investigation over alleged abuse of its market
position to control the desktop software and low-end server
markets, and hampering competition by bundling Windows Media Player
within Windows XP. It has been accused of actively misleading EU
investigators.
The company denies all the accusations and has said it will respond
in November.
The details emerged in a report leaked to the Wall Street Journal,
which also implied that Microsoft could be fined up to 10% of its
annual revenue of $2.5bn (£1.7bn), although penalties in other
cases have averaged 1%. EU competition commissioner Mario Monti
said speculation was premature.
The software company and the US government were given until last
Friday to reach some kind of settlement deal in the US antitrust
case. Their failure to do so moves the process to arbitration and,
if that fails by 2 November, fresh court hearings will start on 11
March 2002.
eric.doyle@rbi.co.uk