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EU Official Labels Microsoft's Behavior Unacceptable

InfoWorldMike writes "EU commissioner Neelie Kroes has lashed out at Microsoft in comments to European parliamentarians Thursday, saying it is 'unacceptable' that the company continues to gain market share using tactics that were outlawed in the Commission's 2004 antitrust ruling against the software vendor. 'Three years later Microsoft still hasn't complied with the main demand imposed by the European antitrust ruling: that the company share interoperability information inside Windows at a reasonable price to allow rival makers of workgroup servers to build products that work properly with PCs running Windows.'"

36 of 290 comments (clear)

  1. Yes... by drinkypoo · · Score: 4, Insightful

    ...and until someone actually gets serious and imposes a penalty against them that will actually induce them to change their behavior, like preventing them from selling their products until they comply, this is what's going to continue to happen.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    1. Re:Yes... by Danathar · · Score: 1, Insightful

      The EU sees they can get a payoff from Microsoft, you can bet they will push it until MS says uncle...then there will be some settlement.

    2. Re:Yes... by drinkypoo · · Score: 4, Insightful

      That would be good, but at least the EU is currently fining the pants off them, which is a start. No company can continually take half a billion dollar fines year after year without seeing shareholders getting pretty angry.

      They can if it enables them to make two billion dollars (or whatever) that they otherwise would not be able to make. Microsoft's entire business model depends on vendor lock-in, and keeping these formats private and secret is part of that.

      If you could flawlessly migrate all of your Microsoft Office documents to OO.o formats today, then huge numbers of people would leave microsoft office tomorrow; they'd be leaving Windows shortly thereafter. The vast majority of people working with computers use office, a web browser, and an email client, and very little else. It would be cheaper in every way to put them on Linux with OO.o; TCO is probably approximately the same, though somewhat higher for Windows due to cleaning up malware (which in an organization with any significant number of computers requires quite a bit of time) but is vastly cheaper up-front. Priced Vista+Office lately?

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:Yes... by drinkypoo · · Score: 2, Insightful

      $135 for Office, when bundled with a new system. Vista is effectively free from the large OEMs, since the price is the same whether it has Windows or Linux. For businesses ordering through OEMs, the price to stay on Windows isn't that much (and is a lot less hassle than rebuilding the network to use Linux).

      The issue is that Vista forces you to buy a new system in most cases, and if you don't, you're spending as much money on software licensing as if you were buying a new machine!

      The latest Linux-distribution-of-your-choice will run on hardware a couple generations old very very nicely, while if you have the latest, greatest hardware, it will let you make use of it.

      If you're looking at say $600 per machine for new software (if you have new machines) or $800+ per machine to replace the machine so you can run vista, well, you've made my point for me really.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  2. Sigh. by Khaed · · Score: 5, Insightful

    Why is it that only Europe is standing up to them?

    1. Re:Sigh. by jalet · · Score: 2, Insightful

      Culturally ???

      You are trying to be funny, aren't you ?

      --
      Votez ecolo : Chiez dans l'urne !
    2. Re:Sigh. by Savage-Rabbit · · Score: 2, Insightful

      Care to back any of that up? He's a political zealot, he doesn't have to....
      --
      Only to idiots, are orders laws.
      -- Henning von Tresckow
    3. Re:Sigh. by jalet · · Score: 5, Insightful

      Sorry, in the part of the world I live in we usually don't use "consuming" and "culture" in the same sentence.

      --
      Votez ecolo : Chiez dans l'urne !
    4. Re:Sigh. by guruevi · · Score: 4, Insightful

      I don't see them fining Red Hat, Google, Yahoo, IBM or any other company that is both highly successful and behaves according to the law. Only breakers of those laws and regulations get punished.

      And although you claim that Europe ignored the tech industry for decades, they still have a larger broadband penetration rate, they have a superior electricity and telecommunications network and a lot of smart people and ideas come from a part of Europe (ok, a lot of them migrate to the US, including me but that has more to do with the European tax rates, which are killing to high salaried workers and a brain drain from US and Asian companies), look at Linus Torvalds, DVD Jon, The Pirate Bay, a lot of alternative energy 'inventions'...

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    5. Re:Sigh. by jeevesbond · · Score: 4, Insightful

      Europe virtually ignored the tech industry for decades

      Yes, Tim Berners-Lee completely ignored technology when inventing the Web (whilst working at CERN) preferring to use homing pigeons instead of a packet-switching network.

      Just because the EC is taking a known monopolist to task--and going the right way about it--doesn't mean there is some sort of European conspiracy going on. Microsoft have got a massive percentage (a bit out of date, can't seem to find anything current) of desktop market share and are using that to unfairly hamper competition. They use bundling and their API to stop people from developing for other platforms. They put the brakes on IE for as long as possible because they realised their API was (and still is) threatened by web based applications.

      Unfortunately the US government failed to prosecute Microsoft fully so the EC are being forced to do it. It's sad but quite simple.

      --
      I'm going to transform myself into a mighty hawk. Either that or I'll just go and work at Dixons, haven't decided yet.
    6. Re:Sigh. by paving-slab · · Score: 2, Insightful

      I can see why you're posting as a coward.

      Source code is not the "ultimate documentation", it is pretty useless as documentation. Imagine if the Windows help system popped up the relevant source code whenever you had a problem, do you think that would be an improvement?

      They have defined what they want, they want Microsofts protocols documented in a way that makes it possible for other companies to talk to them. This is what Microsoft refuses to do.

  3. The Rule of Law? by WillAffleckUW · · Score: 2, Insightful

    I mean, who do the EU think they are, forcing an Ireland-based company like Microsoft to comply with EU laws!

    Next thing you know they'll fine them - again - for beaucoup Euros ...

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    -- Tigger warning: This post may contain tiggers! --
  4. Re:Market Share by Anonymous Coward · · Score: 4, Insightful

    > Let the marketplace decide...

    Firstly you need a competitive market for that to work, that's why we have competition laws. Secondly, this idea that free markets are some democratizing force is total bullshit.

    HTH.

  5. Impossible? by jawahar · · Score: 2, Insightful

    I think it is impossible to comply unless MS opens source code to share.

  6. Re:Sigh. or how do you measure success by WillAffleckUW · · Score: 2, Insightful

    Because they don't have any successful tech companies of their own to boss around?

    Hmmm. I'll just ignore all the medical genetics, biochemistry, and biotech labs running Mandriva and SuSe then, shall I?

    OK if I take back those HIV vaccines from the world and the genome sequences that Cambridge did, too? And you don't need those heart medications for your cloned beef ...

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    -- Tigger warning: This post may contain tiggers! --
  7. Re:I can't believe I am saying this... by Anonymous Coward · · Score: 5, Insightful

    > Europe is trying to force its socialist business practices on the the free world.

    Where is this free world and what do you call it when the US uses the WTO to dictate trade policy for the rest of the world?

    Microsoft are free to stop breaking the law anytime they please.

  8. Re:Market Share by tsa · · Score: 3, Insightful

    The Americans also ruled that MS used unfair practices, and they also kept buying their stuff. So what are you implying?

    --

    -- Cheers!

  9. Re:Not taking sides... by lawpoop · · Score: 2, Insightful

    The problem is that European regulators can't introduce competition into the marketplace by throwing out MS. There is nobody who can step up and replace them. All of the software that runs on Windows depends on Windows, and there is no competitor that runs windows software without a hitch. If the EU said, "OK Microsoft, no more sales in Europe for you!" then all of the European computer users would hate the EU for taking away their software, and there would have no replacement.

    In order for siome company to create a competing OS that can actually run Windows software well enough, MS would have to release their specs. That's why the EU is playing softball -- ultimately they need MS' co-operation for there to even *be* a competitor. If MS leaves or is thrown out of the market, the users are SOL.

    --
    Computers are useless. They can only give you answers.
    -- Pablo Picasso
  10. I have to laugh by WindBourne · · Score: 5, Insightful

    Bill has correctly figured it out that it is better to cheat,steal, and lie, pay a hefty fine later and OWN the market than it is to play fair. The longer that a gov. takes to play these games with MS is only to MS's advantage. If EU really wanted to stop this, they would tell MS if you have 1 month and then we charge you 5 x all of the EU sales/month each month. Only when it is not in Bill Gates best advantage will he comply.

    Since it has been 3 years and MS has not complied, it is obvious to me that EU will not really be cracking down.

    I may not like BG but you have to admire him. He knows how to run circles around govs.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:I have to laugh by WindBourne · · Score: 3, Insightful

      Assume that you charge them JUST or below the amount that MS makes in the EU sales. Then MS has a strong incentive to continue with the sale. Why? because it is slowly draining their competitors. Once MS owns the market, then they can comply (or do a USA thing and buy the politician). OTH, if you charge them 5 to 10 x the EU sales, they have a strong incentive to become lawful. In addition, even if you charge MS 10 the EU sales it would still be less than what MS loses on their hardware systems.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    2. Re:I have to laugh by cyber-vandal · · Score: 3, Insightful


      The problem is that them being "lawful" means, among other things, dumping the media player from Windows, which hurts the users of the OS (I prefer to have a standard media player in Windows, and I don't want to download it additionally. I prefer my apps to rely on the OS having video display capabilities built-in versus having to pack a full media player with each of my media apps for ex.).


      How does it hurt the user of the OS since the PC builder will just put one on before they sell it? The idea is that if WMP is already on there it acts as a disincentive to install any other media player (since that's extra work). I'm not arguing for or against the remedy I just get tired of reading this fallacy on here.

  11. Doesn't matter by Thaelon · · Score: 3, Insightful

    The only way to "beat" Microsoft is to come out with something better. No amount of fines will really matter as long as they still hold the dominant market share.

    The reason is that people creating software for computers have the greatest number of opportunities if they make them windows compatible. And since making something cross-platform is a bitch, it's much easier to get 90% of the market by doing windows alone. And so that's what people and companies will do.

    So we can either do one of two things
    1) Force people to develop cross platform software and hardware (yeah right)
    2) Create an operating system so much better that the majority adopts it (extremely unlikely, but better than "yeah right")

    The only other thing I can think of is FORCE companies like Dell, HP, Toshiba, Sony, IBM, Lenovo, Gateway etc to stop forcing Windows down our throats on computers we buy from them and sell the bare machine at a REDUCED price. I'm sure Microsoft is strong-arming some of them to some degree, but if we just flat out make it illegal to force-preload then they have little choice.

    --

    Question everything

  12. Re:Market Share by hxnwix · · Score: 2, Insightful

    Microsoft is breaking the law.
    Microsoft is breaking the law.
    Microsoft is breaking the law.
    Microsoft is breaking the law.
    Microsoft is breaking the law.

    Why is this so hard for certain people to understand?

  13. Re:Market Share by westlake · · Score: 2, Insightful
    The Americans also ruled that MS used unfair practices, and they also kept buying their stuff. So what are you implying?

    That trying to legislate a market for Microsoft's competitors is a waste of time?

  14. Mod Parent Up by TheGreatHegemon · · Score: 2, Insightful

    I've had the same notion in my mind a long time, but the parent has said it more succinctly than I ever could have.
    Europe seems to be viciously attacking most American(Capitalist) software companies - Google, Microsoft, and Apple have all three had suits brought against them. Every last one has lost, too. After a point, I wonder if they're really preventing monopolistic practices are just preventing competition altogether.

  15. Re:Not taking sides... by WaZiX · · Score: 4, Insightful

    You do realize Europe is consists of over half a billion people right? Computers have become ordinary products, leaving such a market would be corporate suicide... Now one of the Main goals of the EU is to defend the customer, all the EU are doing is what they were appointed to do. Such antitrust lawsuits are common places, be it a US company or not. Believe it or not it's not the task of the EU to ruin Microsoft, their task is to defend competition amongst companies inside the European market. Hell this would benefit many American companies as well and that's a good thing. The whole point is to allow customers to have the best solution for the best price, where that solution comes from is of absolute no importance.

  16. Re:Market Share by nine-times · · Score: 2, Insightful

    Why can't Sun do the same thing with servers on its own without government interference???

    ...well I'm not sure I agree with this argument. In the larger context of what happened, it seems to me you're argument goes something like:

    Microsoft tried to do bad things before, and the government interfered a little because people were predicting Microsoft's bad behavior would have many negative ramifications. Microsoft was still allowed to continue with their bad behavior, and the predicted negative consequences manifested. Luckily there were other forces that mitigated the negative impact and it wasn't a total disaster, and we're now recovering, though problems persist. Microsoft's bad behavior wasn't a total disaster in this one case, why shouldn't we allow Microsoft to commit similar acts?

    It just doesn't quite make sense to me. IE's total dominance of the browser market was a bad thing that could have and should have been prevented. It's not over. Firefox still doesn't have a huge market share, and it's still a fight to get Microsoft to adhere to web standards.

    But to answer your question more specifically, there's a reason why Sun can't really do "the same thing with servers": HTML is an open standard that other people could build browsers against. Microsoft's SMB/CIFS/Active Directory/Exchange are not open standards, and people are forced to reverse-engineer ways to interface with these things. And let's not forget that Microsoft can change these things on a whim, push updates out, and screw up anyone trying to reverse engineer things.

  17. Steve Balmer is in Denmark end of April... by JackMeyhoff · · Score: 2, Insightful

    .. feel free to throw some rotton eggs at him. One thing though, when he is in Europe he doesnt dance about like a monkey spreading his BO of death, he actually is calm and business like. While he is here he will be "leveraging" his demands to various government officials and using the businesses he has aquired there as a bargining chip like he has done over software patents. Do as I want or I close shop and you have to pay unemployment, and lose the tax, and so on. Thats how he does business. He also will have the press in tow. He really does love his tours of self importance.

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    http://www.rense.com/general79/wdx1.htm
  18. Disclaimer: I am not a European by Anonymous Coward · · Score: 2, Insightful

    Europe is trying to force its socialist business practices on the the free world.

    If MS wants to sell to Europe, then they have to deal with European laws. Unless you think that a corporation should be above the law.
  19. Re:Market Share by Reality+Master+101 · · Score: 2, Insightful

    MS starting giving away their browser to compete for Netscapes, whose browser was NOT FREE.

    I think you are misremembering (not a criticism, thinks were fast and furious back then). Netscape would allow you to give them money if you really wanted to, but it was also a free download, and was also bundled everywhere. Netscape was definitely using the "give away the product and make up the difference in volume" Internet model.

    Both browsers were a piece of crap then, but the is irrelevant to the discussion.

    No, Netscape really was a buggy piece of crap. Remember, Netscape had an enormous lead over IE... in the 90s of percent. Everyone switched because IE was so much better, especially when it came to speed.

    Using you monopoly power to destroy a competitor is illegal.

    And yet, Opera does OK in this IE-dominated world. Netscape died because their product sucked, and they were also trying to take advantage of a non-natural market. It was like trying to sell TCP/IP stacks on top of windows. Those companies used to exist, by the way. They don't anymore, and no one cries for them because Microsoft started "bundling" TCP/IP as part of the operating system. Same with the browser -- A browser is a natural utility of an operating system these days.

    --
    Sometimes it's best to just let stupid people be stupid.
  20. Why does Motorola use an OS designed in Finland? by EmbeddedJanitor · · Score: 4, Insightful
    By your argument, you'd be suprised that US phone makers use Linux (Finnish) or Symbian(British) OSs in cell phones. Why do people in the US buy German cars, you'd think they'd be able to make there own premium brand cars.

    The EU only wants to regulate the way US credit card companies deal with EU citizens.

    Welcome to the global community. All the EU is saying is that a fair set of rules need to be put in place so that people don't get abused. What EU proposes against Microsoft would help US companies too, it is just that the US goverment lacks the balls to do this.

    --
    Engineering is the art of compromise.
  21. Two reasons: gutless and clueless by Dion · · Score: 3, Insightful

    The US government is a completely gutless pet of the plutocracy that really rules the country, so unless there is dramatic change of regime nothing will happen there.

    The rest of the world, except the EU (it seems) doesn't really care because they are too primitive to to realize that being dependent on a single US company is a problem.

    The funny thing is that the EU has a very simple solution to the MS problem; simply fine MS 10000 EUR / day / undocumented protocol identified and use the resulting money hire 10-20 hackers pr. protocol to reverse engineer it and publish the docs.

    Anyone should be allowed to submit protocols, if MS has implemented both a server and a client then it needs to be documented.

    Ideally this principle should extend to other areas as well, there are tons of secret protocols that do nothing more than serve as a weapon of vendor lockin.

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    -- To dream a dream is grand, but to live it is divine. -- Leto ][
  22. Re:Interesting by jb.hl.com · · Score: 2, Insightful

    Devils advocate: At least people have a choice to buy Microsoft products or not. They don't have the choice to not be subject to the EU or its laws. They won't even have the first choice if the EU stops Microsoft selling its products in Europe.

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    By summer it was all gone...now shesmovedon. --
  23. Re:Not taking sides... by Tom · · Score: 2, Insightful

    But I would like to see what would happen if Microsoft just said "We're not changing our practices, so we won't sell our products in Europe." Immediate recall of the entire board of directors by MS shareholders.

    You US trolls still don't get it that the EU is the largest common market, bigger than the US market, do you? Walking away from a market that size is a suicide move for a company that relies on monopoly and lock-in for survival.
    --
    Assorted stuff I do sometimes: Lemuria.org
  24. Re:Not taking sides... by Tom · · Score: 3, Insightful

    If the EU said, "OK Microsoft, no more sales in Europe for you!" Don't be stupid. The EU is a government. It doesn't tell you what to do. It tells you what not to do and if you still do it, they'll take away your cookies. Half a billion at a time when you're the size of MS.

    And believe it or not, if it actually were game over for MS in the EU, all that precious windos-only software would be ported to OSX, Linux, etc. in record time. The EU market is huge, larger than the US market. Any company producing software would make sure it's available in that market, windos or no windos.
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    Assorted stuff I do sometimes: Lemuria.org
  25. Re:Market Share by Tom · · Score: 2, Insightful

    Why is this so hard for certain people to understand? Because for some people, especially on the low end of the evolutionary scale, the only way they can survive with them being down there and others being up there is to assume a world-view that those on top are there because they are right. MS is on top right now, so they must be right.
    --
    Assorted stuff I do sometimes: Lemuria.org