Ironworks Gaming Forum - View Single Post - Microsoft-EU showdown draws to a close

Dreamer128 · 04-28-2006, 04:57 PM

Outcome of Microsoft-EU trial uncertain as showdown draws to a close

Although EU regulators struggled to fend off a legal offensive from Microsoft during their anti-trust trial, the verdict was still out on Friday, the last day in the week-long showdown, over which way the judges would lean.

Microsoft requested the trial before the European Union's second-highest court in hope of showing that the EU's executive commission erred when it accused the company of abusing its mighty market power and fined the group 497 million euros (623 million dollars).

The trial holds huge stakes for both sides as a defeat would deal a devastating blow to the commission's authority as a competition regulator, while losing the case could mean Microsoft's would need to review its business model.

However, both sides will have to wait until the end of the year at the very earliest for the judges to make a decision because of the mass of technical detail and complicated arguments that they will have to pore over to make up their minds.

Even though EU commission's lawyers have stumbled over the course of the week in making their case, both sides agree that it is impossible to guess which way the judges will turn.

The roots of the trial go back to March 2004 when, after a five-year investigation, the commission took its biggest competition decision ever in ruling that Microsoft had broken EU law by using a quasi-monopoly in personal computer operating systems to thwart rivals.

In addition to slapping a record fine on Microsoft, the EU ordered the company to sell a version of its Windows operating system without its Media Player software and to divulge information about Windows needed by makers of rival products.

Although Microsoft has paid the fine, it has fought tooth-and-nail to resist corrective changes.

Keeping up its offensive, it argued on Friday that Brussels was in effect calling on the company to reveal valuable trade secrets.

Microsoft lawyer Ian Forrester stressed that the company's "products are the fruit of its intellectual efforts" and said that "trade secrets are not second class rights".

Fighting back, commission lawyer Anthony Whelan insisted that the case was not about intellectual property rights.

"We need to be prudent when we attribute value to secret information," he argued.

"The simple fact of commercial value cannot be the end of the story," the Irish lawyer added.

Lawyer James Flynn, who is represents several of Microsoft's big industrial rivals, stressed that the information the commission wanted Microsoft to publish had a value "because it furthers Microsoft's dominance".

On Thursday, the commission struggled to answer a question from Judge John Cooke when he asked about the value of such information was.

Despite Microsoft's legal assault on the commission's anti-trust decision, the commission is trying to force Microsoft to comply with the 2004 and has threatened fines of up to two million euros per day if it finds in the coming months that the company is not doing enough to meet the demands laid out in the landmark 2004 ruling.

(EUBusiness)

04-28-2006, 04:57 PM	#7
Dreamer128 Dracolisk Join Date: March 21, 2001 Location: Europe Age: 40 Posts: 6,136	Outcome of Microsoft-EU trial uncertain as showdown draws to a close Although EU regulators struggled to fend off a legal offensive from Microsoft during their anti-trust trial, the verdict was still out on Friday, the last day in the week-long showdown, over which way the judges would lean. Microsoft requested the trial before the European Union's second-highest court in hope of showing that the EU's executive commission erred when it accused the company of abusing its mighty market power and fined the group 497 million euros (623 million dollars). The trial holds huge stakes for both sides as a defeat would deal a devastating blow to the commission's authority as a competition regulator, while losing the case could mean Microsoft's would need to review its business model. However, both sides will have to wait until the end of the year at the very earliest for the judges to make a decision because of the mass of technical detail and complicated arguments that they will have to pore over to make up their minds. Even though EU commission's lawyers have stumbled over the course of the week in making their case, both sides agree that it is impossible to guess which way the judges will turn. The roots of the trial go back to March 2004 when, after a five-year investigation, the commission took its biggest competition decision ever in ruling that Microsoft had broken EU law by using a quasi-monopoly in personal computer operating systems to thwart rivals. In addition to slapping a record fine on Microsoft, the EU ordered the company to sell a version of its Windows operating system without its Media Player software and to divulge information about Windows needed by makers of rival products. Although Microsoft has paid the fine, it has fought tooth-and-nail to resist corrective changes. Keeping up its offensive, it argued on Friday that Brussels was in effect calling on the company to reveal valuable trade secrets. Microsoft lawyer Ian Forrester stressed that the company's "products are the fruit of its intellectual efforts" and said that "trade secrets are not second class rights". Fighting back, commission lawyer Anthony Whelan insisted that the case was not about intellectual property rights. "We need to be prudent when we attribute value to secret information," he argued. "The simple fact of commercial value cannot be the end of the story," the Irish lawyer added. Lawyer James Flynn, who is represents several of Microsoft's big industrial rivals, stressed that the information the commission wanted Microsoft to publish had a value "because it furthers Microsoft's dominance". On Thursday, the commission struggled to answer a question from Judge John Cooke when he asked about the value of such information was. Despite Microsoft's legal assault on the commission's anti-trust decision, the commission is trying to force Microsoft to comply with the 2004 and has threatened fines of up to two million euros per day if it finds in the coming months that the company is not doing enough to meet the demands laid out in the landmark 2004 ruling. (EUBusiness)