Knowledge (XXG)

Microsoft Corp. v. Commission

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most cost-effective ways. However, an undertaking which is dominant in one product market can harm consumer benefit through tying by foreclosing the market for other products. The commission's findings showed that Microsoft had tied its Windows Media Player to its personal computer operating system. There was serious evidence to point out that Microsoft advertised Windows Media Player as a standalone product to be downloaded by itself, it was designed to work with competitors' operating systems, and there was a separate licensing agreement for the media player. Alden F. Abbott (U.S. Federal Trade Commission), while visiting the Center for Competition Law and Policy at the University of Oxford, in his paper on "A Brief comparison of European and American Antitrust Law" talked about the early intervention of the European enforcers in regard to bundling/tying practices which conforms to the idea about the European Union and its concern for false negatives. He states that bundling carried out by a dominant firm is likely to be found more concerning by the EU than the American enforcers.
404:, the then Commissioner for EU Competition Policy, stated that Microsoft had continued to abuse its powerful market position and hindering innovation by charging extraordinary royalties to companies for providing crucial data to computer users around the world. She also goes on to state that main aim of the competition policy is to avoid consumer harm and to produce consumer benefits. However, the Assistant Attorney General at that time for Antitrust, R. Hewitt Pate issued a statement on the EC's decision in its Microsoft investigation. He commented that the US antitrust laws are enforced to protect the consumers by protecting the competition, not competitors. The commission's guidance on 453:
new versions of Windows that do not include certain multimedia technologies and to provide our competitors with specifications for how to implement certain proprietary Windows communications protocols in their own products. The Commission’s impact on product design may limit our ability to innovate in Windows or other products in the future, diminish the developer appeal of the Windows platform, and increase our product development costs. The availability of licenses related to protocols and file formats may enable competitors to develop software products that better mimic the functionality of our own products which could result in decreased sales of our products.
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contained the Windows operating system. Microsoft reached a settlement in 1994, ending some of its license practices, specifically "charging royalties on a 'per processor' basis", which allowed Microsoft to be paid without providing a product and caused systems bundling other software (such as Novell's DOS 7.0) to be more expensive due to the alternative system software incurring an extra cost on top of the Microsoft licensing fee. Additionally, Microsoft agreed to stop requiring that software developers sign non-disclosure agreements preventing them from developing applications simultaneously for Microsoft and non-Microsoft platforms.
183: 413:, the commission found out that customers were unable to buy Windows without WMP, and they install any alternative software alongside WMP. Microsoft argues that customers need not use it and that they did not have to pay extra for it. Microsoft argues that tying of WMP allowed the consumers to have their personal computers running with default options, out of the box, which lowered the transaction cost by reducing time and confusion. 421:. Microsoft was also restricted from giving discounts to customers who were buying the operating system together with WMP, which would restrict the user's choice to select the version without the player, and the unbundled version had to have similar performance with the bundled version. Richard Whish in his textbook goes on to say that the way in which Article 102 has been construed, has led academic commentators to compare it with 433:
while the commission has to pay 20% of the legal costs of Microsoft. However, the appeal court rejected the Commission ruling that an independent monitoring trustee should have unlimited access to internal company organization in the future. On 22 October 2007, Microsoft announced that it would comply and not appeal the decision any more, and Microsoft did not appeal within the required two months as of 17 November 2007.
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crackdown on Microsoft and warned "The judgment confirms that the imposition of such penalty payments remains an important tool at the commission’s disposal." He also claimed that the Commission's actions against Microsoft had allowed "a range of innovative products that would otherwise not have seen the light of day" to reach the market.
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October 2005, from a shortlist put forward by Microsoft, believes that the decision clearly outlines what Microsoft is required to do. I must say that I find it difficult to imagine that a company like Microsoft does not understand the principles of how to document protocols in order to achieve interoperability.
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In January 2009, the European Commission announced it would investigate the bundling of Internet Explorer with Windows operating systems from Microsoft, saying "Microsoft's tying of Internet Explorer to the Windows operating system harms competition between web browsers, undermines product innovation
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A spokesperson for Microsoft said the company was "disappointed with the court's ruling" and felt the company had "resolved competition law concerns" in 2009, making the fine unnecessary. He declined to say whether Microsoft would file an appeal or not. Almunia called the ruling a vindication of the
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The European Commission closely scrutinizes the design of high-volume Microsoft products and the terms on which we make certain technologies used in these products, such as file formats, programming interfaces, and protocols, available to other companies. In 2004, the Commission ordered us to create
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On 17 September 2007, Microsoft lost their appeal against the European Commission's case. The €497 million fine was upheld, as were the requirements regarding server interoperability information and bundling of Media Player. In addition, Microsoft has to pay 80% of the legal costs of the Commission,
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Citing ongoing abuse by Microsoft, the EU reached a preliminary decision in the case in 2003 and ordered the company to offer both a version of Windows without Windows Media Player and the information necessary for competing networking software to interact fully with Windows desktops and servers. In
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Microsoft announced that it will demand 0.4% of the revenue (rather than 5.95%) in patent-licensing royalties, only from commercial vendors of interoperable software and promised not to seek patent royalties from individual open source developers. The interoperability information alone is available
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The second scenario, where the Commission concludes that a behavior by a firm is not abusive (but it is), the firm is left alone to its own devices and to its anti-competitive practices, which may affect the competition process and cause irreparable damages, and ultimately the consumers are harmed.
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The next month Microsoft released a paper containing scathing commentary on the ruling including: "The commission is seeking to make new law that will have an adverse impact on intellectual property rights and the ability of dominant firms to innovate." Microsoft paid the fine in full in July 2004.
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is a specific type of exclusionary abuse which refers to the situation where customers that purchase one product (the tying product) are also required to purchase another product from the dominant undertaking (the tied product). This is intended to provide the customers with better products in the
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On 12 July 2006, the EU fined Microsoft for an additional €280.5 million (US$ 448.58 million), €1.5 million (US$ 2.39 million) per day from 16 December 2005 to 20 June 2006. The EU threatened to increase the fine to €3 million ($ 4.81 million) per day on 31 July 2006 if Microsoft did not comply by
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Microsoft has claimed that its obligations in the decision are not clear, or that the obligations have changed. I cannot accept this characterization—Microsoft's obligations are clearly outlined in the 2004 decision and have remained constant since then. Indeed, the monitoring trustee appointed in
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On 27 February 2008, the EU fined Microsoft an additional €899 million (US$ 1.44 billion) for failure to comply with the March 2004 antitrust decision. This represented the largest penalty ever imposed in 50 years of EU competition policy until 2009, when the European Commission fined Intel €1.06
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The decision highlighted that tying in this particular case would result in foreclosing the competition in this market. There was evidence that even though the other media players were rated higher in quality, WMP's usage increased due to the tying process. The commission ordered that Microsoft
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claimed that Microsoft was blocking its competitors out of the market through anti-competitive practices. The complaint centered on the license practices at the time which required royalties from each computer sold by a supplier of Microsoft's operating system, whether or not the unit actually
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states that the commission will normally only intervene where the conduct concerned has already been or is capable of hampering competition from competitors which are considered to be as efficient as the dominant undertaking. The commission is mindful that what really matters is protecting an
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in February 2011 and remained absent for 14 months despite Microsoft reporting that it was still present, subsequently described by Microsoft as a "technical error". As a result, in March 2013 the European Commission fined Microsoft €561 million to deter companies from reneging on settlement
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upheld the fine, but reduced it from €899 million to €860 million. The difference was due to a "miscalculation" by the European Commission. The commission's decision to fine Microsoft was not challenged by the court, saying the company had blocked fair access to its markets. E.U. competition
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billion ($ 1.45 billion) for anti-competitive behaviour. This latest decision follows a prior €280.5 million fine for non-compliance, covering the period from 21 June 2006 until 21 October 2007. On 9 May 2008, Microsoft lodged an appeal in the European
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381 million), the largest fine ever handed out by the EU at the time, in addition to the previous penalties, which included 120 days to divulge the server information and 90 days to produce a version of Windows without Windows Media Player.
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effective competition process and not simply protecting competitors. This may well mean that competitors who deliver less to consumers in terms of price, choice, quality and innovation will leave the market. With regards to tying of
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commissioner JoaquĂ­n Almunia has said that such fines may not be effective in preventing anti-competitive behavior and that the commission now preferred to seek settlements that restrict businesses' plans instead. As such,
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should sell in Europe a full functioning version of Windows without WMP. It also asked Microsoft to refrain from promoting WMP over competitors through Windows or providing selective access to Windows
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Service Pack 1 (SP1) to members of its Work Group Server Protocol Program (WSPP) on the day of the original deadline. Microsoft also appealed the case, and the EU had a week-long hearing over it.
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and ultimately reduces consumer choice." In response, Microsoft announced that it would not bundle Internet Explorer with Windows 7 E, the version of Windows 7 to be sold in Europe.
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over Microsoft's licensing practices in 1993, and eventually resulted in the EU ordering Microsoft to divulge certain information about its server products and release a version of
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The fines will not be distributed to the companies that lost income due to Microsoft practices. The money paid in fines to the European Court goes back into the EU budget.
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called the Microsoft decision "a decision that could mark the end of an era in antitrust law in which regulators used big fines to bring technology giants to heel."
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was appointed the European Commissioner for Competition; one of her first tasks was to oversee the fining brought onto Microsoft. Kroes has stated she believes
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seeking to overturn the €899 million fine, officially stating that it intended to use the action as a "constructive effort to seek clarity from the court".
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The Commission must do its part ... It must not rely on one vendor, it must not accept closed standards, and it must refuse to become
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Microsoft has a compliant version of its flagship operating system without Windows Media Player available under the negotiated name "
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raised a complaint about the lack of disclosure of some of the interfaces to Windows NT. The case widened when the EU examined how
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Commission Decision of 24.03.2004 relating to a proceeding under Article 82 of the EC Treaty (Case COMP/C-3/37.792 Microsoft)
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As a result of the law being under-inclusive, the firms get away with their anti-competitive practices. This is known as a '
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box" screen letting users choose one of twelve popular products listed in random order. The twelve browsers were Avant,
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Microsoft stated in June 2006 that it had begun to provide the EU with the requested information, but according to the
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The Court of First Instance's judgment in case T-201/04 Microsoft v Commission & background documents
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On 16 December 2009, the European Union agreed to allow competing browsers, with Microsoft providing a "
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that states a Knowledge (XXG) editor's personal feelings or presents an original argument about a topic.
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Verizon Communications Inc. v. Law Offices of Curtis V. Trinko, LLP (Opinion of the Court)
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Headquarters of the European Commission, which has imposed several fines on Microsoft
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The Microsoft Antitrust Cases – Competition Policy for the Twenty-first Century
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N". In response to the server information requirement, Microsoft released the
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Judgment of the court of first instance (Grand Chamber), Case T-201/04
550:. The automatic nature of the BrowserChoice.eu feature was dropped in 3160: 3138: 3053: 2968: 2896: 2826: 2644: 2351: 1268:"European Commission Gives Intel Record Fine for Antitrust Violation" 573:"The Microsoft case by the numbers: comparison between U.S. and E.U." 499: 196: 377:
Verizon Communications Inc. v. Law Offices of Curtis V. Trinko, LLP
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IMS Health GmbH & Co. OHG v NDC Health GmbH & CO. kg
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for abuse of its dominant position in the market (according to
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Microsoft Corporation v. Commission of the European Communities
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was whether two distinct products were a subject of a tie.
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personal reflection, personal essay, or argumentative essay
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In May 2008, the EU announced it was going to investigate
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European Committee for Interoperable Systems (ECIS)
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European Commission. 635:"EU looks to wrap up Microsoft probe" 589:Abu-Haidar, Lamia (16 October 1997). 7: 1123:"Commission's Guidance on Microsoft" 1111:Commission's Guidance on Article 102 913:"'No alternative' to Microsoft fine" 717:. CNN. 24 March 2004. Archived from 362:the EU stated that it was too late. 3244:European Union competition case law 1516:"No IE onboard Windows 7 in Europe" 1172:"Microsoft loses anti-trust appeal" 938:"Brussels poised to fine Microsoft" 881:Macehiter, Neil (25 January 2006). 850:Marson, Ingrid (18 November 2005). 742:"EU slaps record fine on Microsoft" 669:"EU closes in on Microsoft penalty" 262:locked into a particular technology 1428:"Microsoft is accused by EU again" 591:"Microsoft investigated in Europe" 163:). It started as a complaint from 25: 1693:. 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Oxford University Press. 799:"Microsoft pays EU in full" 797:Hines, Matt (2 July 2004). 391:The main concern raised in 252:are preferable to anything 147:) is a case brought by the 18:European Union v. Microsoft 3265: 2984:Nokia Devices and Services 2877:Fast Search & Transfer 2817:The Blue Ribbon SoundWorks 2743:Microsoft v. United States 2735:United States v. Microsoft 2250:C/AL a.k.a Navision Attain 3183: 2721:Microsoft v. MikeRoweSoft 1806: 1231:"Appeal deadline is over" 963:. Reuters. Archived from 132: 121: 56:Decided 17 September 2007 39: 2746:(2018 data privacy case) 1731:FSFE's case project page 552:Windows 7 Service Pack 1 2862:Double Fine Productions 2700:Microsoft v. Commission 1253:24 October 2007 at the 1213:24 October 2007 at the 1193:31 January 2009 at the 1147:Whish, Richard (2018). 1086:"Department of Justice" 827:. ZDNet. Archived from 825:"Linux and Open Source" 617:Personal Computer World 576:leconcurrentialiste.com 443:Court of First Instance 47:Court of First Instance 35:Microsoft v. Commission 2999:Obsidian Entertainment 2892:GIANT Company Software 1915:Senior leadership team 1722:. Retrieved 2007-09-21 1398:. European Commission. 1312:. CNET. Archived from 801:. CNET. Archived from 774:. CNET. Archived from 744:. CNET. Archived from 479:Related investigations 455: 393:Microsoft v Commission 356: 299:by rewriting it in an 266: 187: 105:Nationality of parties 2994:Nuance Communications 2738:(2001 antitrust case) 2499:Outercurve Foundation 1936:Carolina Dybeck Happe 1800:Microsoft Corporation 1490:Microsoft Corporation 1460:Microsoft Corporation 1090:Department of Justice 457:On 27 June 2012, the 185: 54:Submitted 7 June 2004 3239:Microsoft litigation 3114:Vermeer Technologies 3049:Revolution Analytics 2959:Massive Incorporated 2929:inXile Entertainment 2714:Microsoft v. Lindows 2160:Open source software 2019:Microsoft and unions 1927:Takeshi Numoto (CMO) 1625:(17 December 2009). 1249:, 24 October 2007. 411:Windows Media Player 173:Windows Media Player 3104:Twisted Pixel Games 3089:Winternals Software 2785:Activision Blizzard 2519:Activision Blizzard 2469:Digital Crimes Unit 1891:Carlos A. Rodriguez 1430:. BBC. 25 May 2018. 1295:25 May 2009 at the 1178:, 17 September 2007 1039:. Oxford University 940:. BBC. 27 June 2006 862:on 17 February 2021 805:on 5 September 2012 778:on 3 September 2012 748:on 7 September 2012 679:on 17 February 2021 645:on 7 September 2012 578:. 10 February 2014. 343:Windows Server 2003 149:European Commission 2852:Consumers Software 2693:Apple v. Microsoft 2452:Engineering groups 2190:Visual Studio Code 1862:(Chairman and CEO) 1853:Board of directors 1348:The New York Times 1221:. 22 October 2007. 831:on 16 October 2009 465:The New York Times 301:encyclopedic style 288:is written like a 188: 3201: 3200: 3179: 3178: 3119:Visio Corporation 2797:Altamira Software 2728:Microsoft v. Shah 2635:Internet Explorer 2587:Mojave Experiment 2560: 2559: 2509:Xbox Game Studios 2392: 2391: 2362:LinkedIn Learning 2340:Developer Network 2027: 2026: 1906:Padmasree Warrior 1759:By eubusiness.com 1737:Groklaw interview 1704:978-0-262-02776-2 1632:The Seattle Times 1496:on 19 August 2012 1316:on 24 August 2012 1158:978-0-19-877906-3 770:(21 April 2004). 667:(6 August 2003). 631:McCullagh, Declan 520:Internet Explorer 329: 328: 321: 169:Microsoft Windows 136: 135: 116:Court composition 16:(Redirected from 3256: 3219:Private case law 3191: 3190: 3019:Playground Games 3014:Perceptive Pixel 2969:Mobile Data Labs 2949:Lionhead Studios 2842:Compulsion Games 2760: 2707:FTC v. Microsoft 2537:Microsoft campus 2401: 2036: 1866:John W. Thompson 1829: 1793: 1786: 1779: 1770: 1708: 1676: 1666: 1660: 1650: 1644: 1643: 1641: 1639: 1619: 1613: 1612: 1610: 1608: 1593: 1587: 1586: 1584: 1582: 1564: 1558: 1557: 1555: 1553: 1538: 1532: 1531: 1529: 1527: 1512: 1506: 1505: 1503: 1501: 1492:. 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Index

European Union v. Microsoft

Court of First Instance
Full case name
62004A0201
United States
Court composition
Bo Vesterdorf
T-201/04
European Commission
European Union
Microsoft
competition law
Sun Microsystems
Microsoft Windows
Windows Media Player
interoperability

Novell
Sun Microsystems
streaming media
€
$
ÂŁ
Neelie Kroes
open standards
open source
proprietary
locked into a particular technology
personal reflection, personal essay, or argumentative essay

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