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New Blow for Microsoft in EU Row

twitter writes "The BBC is reporting on a stinging rebuke to Microsoft and their last defensive move in the EU anti-trust trials. Boston district court judge Mark Wolf accused Microsoft of trying to 'circumvent and undermine' European Law by requesting Novell documents. The story reminds us that last month, a federal judge in California denied subpoenas of Oracle and Sun for the same reasons, that a New York judge is currently considering a request against IBM and that Microsoft will be appealing their March 2004 conviction next week and may face millions of dollars of fines a day. New complaints were made just two months ago."

26 of 341 comments (clear)

  1. Why not subpoena in Europe? by TubeSteak · · Score: 4, Interesting
    "Enforcing Microsoft's ... subpoena to Novell would circumvent and undermine the law of the European Community concerning how a litigant may obtain third-party documents,"
    So why isn't MS going through the proper legal channels in Europe?

    Even if their subpoena gets denied in Europe, they can later use the denial as a grounds for appeal (again, in Europe).
    --
    [Fuck Beta]
    o0t!
    1. Re:Why not subpoena in Europe? by utlemming · · Score: 5, Informative

      Quite simple: Microsoft can't get what they want in Europe. In Europe there are laws that prevent Microsoft from seeing third-party documents. What Microsoft is hoping is that it can get the documents in the United States when the EU specifically prohbits it. What is even more interesting is that Microsoft actually thinks that some Federal Judge is stupid enough to grant the request. If Microsoft was to get the documents I would wonder if Microsoft would be in trouble with the EU. I know if I was on the commission, I would punish Microsoft for such back-handed ways.

      --
      The views expressed are mine own and do not express the views of my employer.
  2. Fines for Microsoft? Hah! by Stiletto · · Score: 4, Funny

    "I did lose a million dollars last year. I expect to lose a million dollars this year. I expect to lose a million dollars next year. You know, Mr. Thatcher, at the rate of a million dollars a year, I'll have to close this place in...sixty years."

  3. Re:I still don't get it by mrchaotica · · Score: 4, Informative
    Now I could be wrong, but last time I checked every OS comes with a Media Player.
    Yeah, but unlike Windows, every other OS is not a monopoly! The rules about bundling are different for monopolies and non-monopolies, which is why it's illegal for Microsoft but legal for everyone else.

    You're right that the charge is weak in isolation because it couldn't establish Microsoft as a monopoly by itself. However, it is useful in combination with all the other charges that have been levied against them, because it provides yet another example of the abuse that Microsoft has already been proven to engage in.

    In other words, this charge says "not only have they formerly abused their monopoly (which has already been proven), but they're still doing it, willfully disregarding the previous ruling!"
    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  4. Re:DAMMIT. by Anonymous Coward · · Score: 5, Informative

    The way I understand it, it is like follows:

    Microsoft approaches an American court and says, in essence: Please force company so-and-so (in this case Novell, in another case it was Sun and Oracle) to render a number of documents to us. Reason? Well, we are involved in a lawsuit in Europe, and these documents have been used there in some context or other, but it was ruled that we had no right to look at them.

    The court then replies: So what? European courts have their own mechanisms. The only basis for your demand is that you don't like the outcome of those mechanisms and want an American court to interfere with the European proceedings. It would improper for us to grant you that wish.

  5. Re:The EU justice system by baywulf · · Score: 4, Insightful

    Whether the EU system of justice is fair or not, those are the tradeoffs of becoming a multinational corporation. Corporations have no loyalty to any particular country... they jump around mixing and matching whatever tax systems or legal obligations suit them the best. So why should we Americans give a damm what Microsoft's legal troubles are in the EU system.

  6. Re:The EU justice system by eclectro · · Score: 4, Funny

    If you were on trial, would you want the assumption of innocence?

    Yes, but in Microsoft's case you can make the assumption of guilty and be right.

    --
    Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
  7. Re:I still don't get it by TubeSteak · · Score: 5, Insightful
    At some point you just have to wonder what the real point of these suits is if they're not going to call MS on its real bad business practices and will instead throw questionable charges at Microsoft.
    The definition of "real bad business practices" depends on what part of the world you're in.

    http://tnr.com/p/docsub.mhtml?i=business&s=risen03 3004
    In simplified terms, American antitrust, like much of our country's regulatory philosophy, aims to create a level playing field on which all companies, small or large, can compete; the focus is on protecting consumers through ensuring competitive markets.
    ...
      In Europe, antitrust laws focus less on consumer protection than on competitor protection; the ability of companies to compete, regardless of whether their existence helps consumers, is what's important. From the European perspective, a near-monopoly market share is almost always a bad thing; furthermore, even if a big company is playing by the rules, it has an obligation to make sure it doesn't crowd out smaller competitors.
    Since Microsoft Windows has 9x% of the marketplace... pretty much anything MS bundles with Windows is going to limit competition in the marketplace.

    And I don't think the Europeans are specifically hating on MS. I imagine that if Apple had 9x% of the market, the regulators would get on Apple's case over all the bundled apps in OSX.
    --
    [Fuck Beta]
    o0t!
  8. Re:The EU justice system by alphasubzero949 · · Score: 4, Insightful

    So why should we Americans give a damm what Microsoft's legal troubles are in the EU system.

    For the same reasons we should be giving a damn about Microsoft in the first place. They're still a shady monopoly who got away with murder in the U.S. If MS can bully around the EU legal system, they have carte blanche to pretty much do whatever they damn well please.

  9. Re:I still don't get it by shawb · · Score: 4, Insightful

    The problem isn't so much that they are a monopoly, but they are using their monopoly in one market (OS) to leverage power over competitors in another market (media player.) Being a monopoly is not in and of itself a bad thing, but using the power that comes with being a monopoly to stifle competition is a very bad thing in a capitolistic market.

    --
    I'll never make that mistake again, reading the experts' opinions. - Feynman
  10. Re:The EU justice system by utlemming · · Score: 4, Interesting

    Not a fair chance? By what standards? By the American constructs of justice, they might have been given the short end of the stick. But according to European constructs, they may have been given a fair shake. When Microsoft entered European markets, they accepted the implications of it. When you go over to another country you implicitly accept their constructs of justice and law. That is why the State Department won't step in and save you when screw up in another country. Arguing and asking that Microsoft be given a fair chance by American definitions is just like asking that someone who is in another country recieve an American trial even though the crime is committed in another country.

    The real issue here is that American's view other constructs of justice and social laws as being backwards and wrong. Who is to say that guilty until proven innocent is anymore right or wrong than innocent until proven innocent. I don't agree with the European method, but I am an American.

    It is extremely myopic to argue that Microsoft, albeit an American company should be allowed to operate in Europe and at the same time only have to use American laws. If Microsoft is Europe and selling in Europe then Microsoft should be subject to the laws of that nation, regardless of whether or not Americans consider those laws to be just. It is not up to Microsoft to change those laws, and trying to use backhanded methods to compell what they want is not right.

    If the constructs of justice are so maligent and repugnant, than why don't the Europeans change them? If Microsoft doesn't like the laws, then Microsoft can withdraw. No one is holding Microsoft in Europe; they are choosing to stay in Europe. And when their behavior is not to the liking of the European Union, it is not the place of an American to say that the EU is not treating them fairly, especially when most Americans, including myself, do not understand how Europe handles such issues. The world does not revolve around America, and American's need to respect the laws of another country, even when we percieve them to be unfair by our standards.

    Now I realize that everyone is going to flame me about China, Iran and other countries that violate human rights. But this post is not referring to human rights. That is a whole different story. This is just about the social constructs of justice.

    --
    The views expressed are mine own and do not express the views of my employer.
  11. Displace and distend by spisska · · Score: 5, Insightful

    It's refreshing to see that Microsoft's legal strategy of 'displace and distend' is finally running out of gas. Stretching out and distorting legal proceedings through any and all means is exactly how they ended up convicted of but unpunished for abusing a monopoly position in the US. Europe, thankfully, is no such pushover.

    It's also refreshing to see that US states (CA and MA) acknowledge that, not only do their state laws not apply to the EU, but that they as states are obliged to protect the legitimate interests of companies located in their states against corporate behaviour that has already been found to be criminal on both sides of the Atlantic.

    Microsoft broke the law and has been twice convicted for it. They have, however, paid no price for doing so and have not changed their business habits whatsoever. They are still embracing and extending, they are still moving into new markets to undercut and squeeze out rivals with the help of their OS, and they are still treating market regulators as contemptible wretches who can be outlasted, outspent, and buried under the collective output of an extremely high-priced legal team.

  12. Re:I still don't get it by ozmanjusri · · Score: 4, Informative
    Microsoft are using their desktop OS monopoly to bundle a free media player and leverage the use of their proprietary media codecs and DRM, which will lock customers into MS toolchains.

    The EU can see this and wishes to stop it.

    They can stop it because it is illegal to use monopoly powers in one area to extend that monopoly in other areas, ie media production and distribution.

    --
    "I've got more toys than Teruhisa Kitahara."
  13. Re:I still don't get it by mrchaotica · · Score: 4, Informative
    Where's the abuse from Microsoft? Have they made these players perform poorly on Windows? Have they made it difficult to install these apps? Does Windows Media Player hijack file formats without asking the user first? The answer to all of these is no.
    Does Windows Media player by default record into a proprietary format only it can read? Does Windows Media Player push it's own brand of proprietary DRM? The answer to all of these is YES.
    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  14. Re:The EU justice system by Antony+T+Curtis · · Score: 5, Insightful

    IANAL...

    But as far as I know, in a trial, you are presumed innocent until proven guilty.
    When it comes to an appeal, you are presumed guilty until proven innocent.

    It is the defendant's duty in an appeal to prove that the findings of fact and final judgement in the trial are wrong.

    For Microsoft, the trial is already over. They have been found guilty. This is an appeal, they have to either subject themselves to remedies or prove their innocence.

    --
    No sig. Move along - nothing to see here.
  15. Re:I still don't get it by mrchaotica · · Score: 4, Informative
    Or how about this: who the hell decided it's a monopoly.
    The US and EU judicial systems, that's who!
    An monopoly is when there are no competitors on the market either because there's law in place to forbid competition or because the monopolists owns all of a resource in an area and is therefore having a monopoly over it.
    First of all, a monopoly is when there are no [significant] competitors on the market for any reason. Second, you could consider that Microsoft owns all of the "resource" of application compatibility, and therefore has a monopoly over it.
    What exactly makes Microsoft monopolist? Nothing.
    Except court rulings, that is.
    Are there no other OS for computers and PC in particular.
    Not any that are 100% compatible with Windows, which defines what the "PC" is nowadays.
    Are people not allowed to produce and release OS for PC?
    Correct. Microsoft does not allow third-parties access to all the documentation required to reimplement all of Windows' APIs (especially reimplementing the bugs and unofficial ones).
    Just Windows has a very large market share, that has developer naturally in time.
    Windows marketshare did not "developer" naturally in time! It resulted from Bill Gates artfully screwing over IBM several times (putting MS-DOS on the PS/2 and sabotaging OS/2, for example) as well as using assorted unfair business practices to screw over other competitors (which is partly what the anti-trust case is about to begin with).
    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  16. Re:The EU justice system by Anonymous Coward · · Score: 4, Insightful

    All I can say is : Guantanamo.

    If you were on trial, would you like to know what the charges were? Would you prefer the privilege of being presumed innocent? Would you like access to legal representation?

    Americans no longer have the right to bitch about human rights or democracy (if they ever did); the sheer, galling hipocracy will merely encourage the rest of the world to hate them more.

    Also, as other posters have mentioned, US law is utterly irrelevant outside of US juridiction. You can't pick and choose laws when it suits you, as has been done at Guantanamo.

  17. Re:The EU justice system by trewornan · · Score: 4, Insightful
    Why don't we just seal up our borders and pretend the rest of the world doesn't exist?

    The rest of the world would be delighted if the US did exactly that.

  18. Re:I still don't get it by mrchaotica · · Score: 4, Interesting

    I am if I want to be able to watch Windows Media format videos, which is increasingly the case (most likely due to the influence Microsoft has gained through its Windows monopoly)!

    In fact, I am now a second-class citizen, because I can't use some government services (i.e. downloadable audiobooks from the public library) due to the fact that they only support Windows Media DRM. Given that my taxes paid for that content, I ought to have a legal right to use it!

    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  19. Re:I still don't get it by mrchaotica · · Score: 4, Insightful
    But the fact remains that there is really nothing stopping anyone from NOT using Microsoft products. Everyone is free to choose whatever OS they want. Of course, most of the "good" applications only run on Windows. Is that MS's fault? No.
    Yes, it is Microsoft's fault because they used illegal business practices to get that monopoly. It is Microsoft's fault that I can't make use of the public library's downloadable media (which uses Windows Media DRM), despite the fact that it was paid for with my taxes! It is Microsoft's fault that I can't access most streaming video on the Internet because the companies providing it chose to use WMV, and did so as an effect of Microsoft's monopoly.
    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  20. Re:I still don't get it by Dcnjoe60 · · Score: 5, Insightful

    Apple releases a poor port of their QuickTime player for Windows and assumes that's enough. Their goal is to keep users frustrated enough to jump ship and switch to OS X so QuickTime "simply works better". Guess what? Switching platforms is not an easy proposition if you have a lot of investments in Windows software, even cross-platform apps like Photoshop or Flash.

    Ummm, wasn't it pointed out in the earlier trial that the poor port of Quicktime was because Apple ported it to the then published Microsoft media specs, whereas Microsoft's own media player used undocumented APIs? Wouldn't that qualify as the abuse you are looking for? Well, at least the courts thought so.

    Where's the abuse from Microsoft? Have they made these players perform poorly on Windows? Have they made it difficult to install these apps? Does Windows Media Player hijack file formats without asking the user first? The answer to all of these is no. Microsoft's media player meet the needs of media distributors and this is why it's used widely on the internet, not because it's installed with Windows (you can actually uninstall it by the way, it's not linked to the OS in the same way IE is).

    Has Microsoft made it difficult to install third party media players? Yes. You can't even fully uninstall Microsoft's media player, only make it so it's not the default, but the guts are still there. Does it hijack file formats without asking? Only after doing an update.

    As for Microsof't media player meeting the needs of media distributors, thankyou, you just proved the monopoly case. The only reason it became popular is because prior to that there were several options. It was only after Microsoft bundled media player with their OS that it became widespread (prior to that, you could download it seperately). The only "need" it met was that media distributors new it was now installed on every windows pc and didn't have to worry about any other format. The fact that Microsoft controlled the OS is what allowed this to occur at the expense of other media formats and vendors. If Microsoft had bundled Quicktime with Windows, then it would have been the default. The difference being, that they didn't license Quicktime (or Real), the came out with their own product and by using their monopoly power took over the media market.

    That is why, with the exception of DRM, there hasn't been any real innovation with Windows Media Player. There is no competition, so there is no reason innovate. And for the record, you cannot fully unninstall Windows Media Player. The core DLLs and hooks are still there.

    Face it, there are better players than media player. There are better encoders and formats than media player. There are better interfaces than media player. The only thing that makes it the standard on windows is not that it meets media distributors or users needs, but that it is bundled with Windows.

    Remember, long before the EU got involved, the US courts declared Microsoft an illegal monopoly. The remedies to the findings were challenged and later changed, but not the original ruling. The fact that the EU has come to the same conclusion shouldn't be a suprise. It's not "slashbots" or the courts who are destroying Microsoft. It's Microsoft collapsing under it's own weight.

  21. Re:The EU justice system by shrik3 · · Score: 4, Insightful
    Why don't we just seal up our borders and pretend the rest of the world doesn't exist?

    Because your SUVs would run out of gas.

  22. Re:I still don't get it by Tim+Colgate · · Score: 5, Informative
    There is more background about Quicktime and Microsoft's actions against it here.

    Section headings from the downloadable PDF include:

    # Microsoft has Designed its Multimedia Product to Exclude Competitors and Extend its Monopoly Power

    # Microsoft has Used its Monopoly Power and Anticompetitive Tactics to Try to Defeat Quicktime

    # Microsoft Repeatedly Pressured Apple to Give Up Quicktime and Cede the Multimedia Playback Market to Microsoft

    # to Thwart Quicktime, Microsoft Employed Punitive and Exclusionary Actions

    # The Technical Problems and Misleading Error Messages Introduced by Microsoft Impair Quicktime's Performance and Impede Apple's Ability to Compete

    # Original Equipment Manufacturers and Independent Software Vendors Fear Reprisal from Microsoft if their Business Conduct does not Conform to Microsoft's Wishes

    There are far too many examples of monopoly-abusing business practices to quote them all, but here are a few from the main PDF:

    From paragraph 77: "As recounted in the sworn deposition of Phil Schiller and Tim Schaaf, Microsoft repeatedly pressured Apple to abandon its business of providing software that enables users to view multimedia content on their computers. In return, Microsoft offered Apple the much smaller portion of the market for software tools used to create multimedia content. Microsoft made it clear that if Apple refused to relinquish the playback market, Microsoft would use its monopoly power to drive Apple out of the entire multimedia market." See subsequent paragraphs for how they went about this.

    From paragraph 97: "... Microsoft took several steps to sabotage QuickTime. These included creating misleading error messages and introducing technical bypasses that deprived QuickTime of the opportunity to process certain types of multimedia files. In some instances users were left with the false impression that QuickTime was not functioning properly"

    From paragraph 104: "Microsoft has used undocumented changes to the Windows registry to impair the ability of QuickTime to play numerous multimedia file types. In some cases, Internet Explorer 4.0 bypasses QuickTime and uses Microsoft software to play a multimedia file from a Web server. For many formats the Microsoft software is not able to process the file at all. In other cases, the Microsoft multimedia software will play the file with a severly degraded quality."

    From paragraphs 108,109: "Microsoft has caused misleading error messages to appear for consumers who used QuickTime for various file formats. For example, ... Under certain conditions, an error dialog message would pop up when the user tried to gain access to types of media files, such as a QuickTime movie file, which were not associated with [Microsoft's] ActiveMovie. The Windows operating system would then ask the usser if he wished to reconfigure his system, suggesting that there was a problem that the consumer should fix although no actual error had occurred. If the user selected 'yes', Windows would reconfigure the system to select Microsoft's ActiveMovie instead of QuickTime -- even though QuickTime was capable of running the movie file. From the point forward, Internet Explorer would launch the ActiveMovie player whenever the consumer clicked on a file containing a QuickTime movie. This would cause problems for certain multimedi files because the ActiveMovie plater could only process a subset of the file formats that QuickTime could process. If a file could not be processed by ActiveMovie, an error message would appear telling the user that the player is not available -- even though QuickTime was capable of operating with the file. This could mislead consumers into believing that QuickTime was not operating properly.

    From paragraphs 125,126: "At the conclusion of the meeting [between Apple and Compaq, to discuss Compaq bundling Apple's

  23. Re:I still don't get it by NoOneInParticular · · Score: 5, Insightful
    Media player market: both the actual player and the ability to play content (codecs). RM has its own format that it tries (tried) to license out, and now MS tries to get a monopoly on that market by (a) making its player standard, (b) making sure that most content will be published in the MS codec, and (c) dissallow other players (especially for other platforms) to make use of the MS codecs. No question marks, profits are at (d). MS owns all.

    MS is smart and its plan is good. Many simple minds here at slashdot would see problems with making any of steps (a) to (c) illegal, while at the same time would cry murder when they can't view any content without licensing from MS. Every step is seemingly innocent, the end result is simply that MS has another monopoly: on playing and distributing audio and video no less.

    The EU does see the plan and simply decided to stop MS at (a), while at the same time making it more difficult to implement (c) by mandating that MS opens up his protocols. It has never been about the player, always about the codecs: the player simply carries the payload.

  24. Re:The EU justice system by guet · · Score: 4, Insightful

    Maybe next time try not picking up a gun and getting caught in combat.

    Many of these people were not in combat or anywhere near it. For example the UK citizens who were snatched in Pakistan or others rounded up by the Northern Alliance. They were suspects, not proven combatants, but they were tortured all the same.

    were in bed with an Iraqi dictator while criticizing the "human rights" behavior

    Are you purposely wallowing in hypocrisy or do you just not know that the US (+ UK + many others) supplied arms and backed Saddam during one of the most bloody wars of the 80's (Iran/Iraq war), and only turned against him at the end of it when his delusions of grandeur became an irritant? Millions died in that little sideshow of the Great Game. Seen the photo of Donald Rumsfeld shaking hands with Saddam on a trade mission? The very same Rumsfeld who architected this bungled attempt at an occupation. The same one who will lead you to invade Iran too, with disastrous results.

    I suppose you hate the French as well as the UN - I'm surprised and dissapointed at all the narrow ignorance I read on predominantly American sites like this one. The UN is corrupt, and needs to be fixed, however the likes of John Bolton aren't going to do it, and this kind of posturing about UN corruption isn't going to help either - the current US administration is riddled with corruption, are you complaining as vociferously about that?

    Most of them hate America out of jealousy and spite.

    I'd be willing to bet you know no-one who hates America. You are in no position to judge their motives; in order to understand you'd have to be a little more frank with yourself and accept that an empire has its costs, amongst them the enmity of those you have subjugated.

  25. Re:Microsoft Shrugs by meringuoid · · Score: 4, Interesting
    I dont understand why MS doesnt just say "Ok, fuck you" and withdraw from europe. Refuse to sell their products or provide support to anyone in the EU and only provide support for existing liscences until they expire.

    Most obvious reason: the EU is the world's biggest market. The MS shareholders would go berserk on the spot.

    More subtle reason: if MS left, in an attempt to blackmail the EU... 'right, you don't like us, try doing without Vista!' one of two things would happen:

    1) it turns out that the EU can do just fine without Vista. So why should anyone else cough up for the 'upgrade'? MS loses money.

    2) it turns out that the EU economy is crippled without MS products. Very well: issue an edict, all Microsoft copyrights within the EU are revoked. End of problem. Microsoft screams in agony as every geek across a very heavily wired continent puts Vista up on FTP. Legally.

    --
    Real Daleks don't climb stairs - they level the building.