Technology Dispute Brings EU Rights to Light
December 29th, 2005
As the European Union continues it’s pursuit of Microsoft®; their lack of understanding of basic rights has drastically been revealed to the world.
An Associated Press article recently reported on the conflict between the EU and US based Microsoft. At stake is Microsoft’s right to the basic code that makes up the Windows operating system. The EU has requested for some time that Microsoft share its proprietary code with European competitors. Their stated reasoning is that Microsoft has such control of the technology market in European countries that competing companies can not even begin to compete.
If you remember, the United States government brought an anti-trust suit against Microsoft in 1998 claiming that the software giant was taking actions to actively hinder its competitors.
… if one firm controlled the licensing of all Intel-compatible PC operating systems world-wide, it could set the price of a license substantially above that which would be charged in a competitive market and leave the price there for a significant period of time without losing so many customers as to make the action unprofitable. Therefore, in determining the level of Microsoft’s market power, the relevant market is the licensing of all Intel-compatible PC operating systems world-wide.
–United States v. Microsoft Corporation (Civil Action No. 98-1232, http://www.usdoj.gov/atr/cases/f3800/msjudgex.htm#findings)
Microsoft’s choke hold on the technology market actually threatened to completely exclude competing companies from the market altogether; not to mention the above stated possibility that Microsoft could set the licensing fees for their operating system much higher than needed, thus causing undue harm to the consumer.
When the dust settled, Microsoft had lost, no surprise there, and each of the states within the United States got a piece of the pie. Microsoft refined its methods and the world moved on.
Now the EU is after Microsoft but the tables have turned in a manner no one expected. Microsoft may just be in the right this time. The Europeans want Microsoft to share the basic code that forms the Windows operating system.
Microsoft has been writing a handbook for developers on how to write programs for the Windows environment. The EU Antitrust Commission has come back numerous times, however, demanding more and more information be shared in the documentation.
The Associated Press article reported that:
In March 2004, the EU ordered Microsoft to pay 497 million euros ($613 million), share code with rivals and offer an unbundled version of Windows without the Media Player software for what it saw as an abuse of its dominant position in the industry. The Court of First Instance, the EU’s second-highest court, has not yet set a date to hear Microsoft’s appeal.
Requiring Windows Media Player be removed from Windows is as ridiculous as asking Burger King® to stop including fries with your Whopper®. Business thrives on competition and secrecy can mean the difference between conformity and true competition.
If Microsoft’s code was shared with competing companies the world would end up with multiple clones of Windows. The possibility of a competitor developing new and innovative software would be reduced exponentially. By forcing the release of Windows code, the EU Commission would actually be forcing a Microsoft monopoly more powerful than ever before.
We’ve shipped a new version of Windows, we’ve paid a historic fine, and we’ve provided unprecedented access to Microsoft technology to promote interoperability with other industry players. In total, we have now responded to more than 100 requests from the Commission.
We continue working quickly to meet the Commission’s new and changing demands. Yet every time we make a change, we find that the Commission moves the goal post and demands another change.
– Microsoft General Counsel Brad Smith
Microsoft may not be everyone’s friend. In fact many people intensely hate Bill Gates and his software megalith. But Microsoft is an American success story; the kind of story that the EU will never have. The idea of free speech and an all inclusive natural right to what we create is not ingrained into the European mind as it is in Americans.


We’ve shipped a new version of Windows, we’ve paid a historic fine, and we’ve provided unprecedented access to Microsoft technology to promote interoperability with other industry players. In total, we have now responded to more than 100 requests from the Commission.
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