Out-Law News 1 min. read

Industry group files new EU antitrust case against Microsoft


Opening a new antitrust case against Microsoft, a group of major telcos and IT companies has filed a formal complaint with the European Commission, asking antitrust regulators to block the software giant's alleged efforts to extend its monopoly into new markets.

The Computer and Communications Industry Association (CCIA), whose members include Sun Microsystems, AOL Time Warner, Oracle, Fujitsu and Nokia, claims that Windows XP violates the European Union Treaty, which regulates antitrust and competition issues.

Microsoft, the CCIA claims, is building "an extraordinary array of products," such as music and video-editing software, in its flagship operating system. In this way, the group claims, "Microsoft abuses its overwhelmingly dominant positions in the markets for PC operating systems, browsers and personal productivity applications (PPAS)."

The group also alleges that the company gives its own products favourable position in Windows, insulating them from competition in breach of EU laws.

The CCIA is asking EU regulators to order Microsoft to break out the products it builds in Windows, in order to allow competition in the market for such products to develop.

The group further claims that the recent Microsoft antitrust settlement with the US government and several states has failed to restore competition, and therefore should not be used as a basis for reforms.

According to the CCIA, the intervention of the EU is vital to prevent Microsoft expanding its anti-competitive practices into new software products. The group suggests that the Commission should examine Microsoft's practices as a "co-ordinated effort" to achieve and sustain illegal monopolies, and not as separate activities.

The European Commission has not commented on the substance of the complaint, however it reportedly said its filing will not delay any decision in the pending antitrust case against the software giant.

A summary of the CCIA complaint is available as a 20-page pdf at:
www.ccianet.org/ec_complaint/summary.pdf

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