Philip Lowe, who will become the EU’s Director General for Competition later this year, said in a conference organised by the American Antitrust Institute that the European Commission is completing its analysis. However he stressed that a final ruling will not be issued until a US court decides whether to impose on Microsoft stricter antitrust sanctions, as sought by nine states.
He said:
“Until Microsoft has more clarity on the US side, it can’t engage in negotiations with the European Commission to clarify concessions. We will be in close consultation with the US on the issues it has addressed and is addressing.”
“We have always emphasised that there should be an emphasis on interoperability… [The European Union] will ensure that competitors have the capacity to offer the range of services they want to provide, including security.”
The Commission has been investigating Microsoft since 1998. Competitors had accused the company of abusing its dominant position by failing to disclose hardware specifications necessary to integrate non-Microsoft software into corporate networks.
If the Commission decides that Microsoft has violated European competition rules it could fine the company up to 10% of its worldwide annual revenues. However, the US federal court can only impose changes in Microsoft’s business practices.
A spokesman for Microsoft said: “We continue to cooperate fully with the EU and answer any questions about our products and our efforts to interoperate with other products.”
Consumer advocates have expressed concerns that Microsoft’s new security product, called Palladium, will not be compatible with competing operating systems.
The company has assured consumers that, although Palladium is still in its infancy, the necessary specifications will be fully disclosed. However, competitors may have to pay license fees to use Palladium with their operating systems.