EU-Microsoft Antitrust Case: Theater Of The Absurd
Microsoft last week said it would ship a version of Windows 7 in Europe without Internet Explorer -- called Windows 7 "E" -- and would leave OEMs and customers to choose and add their own browser. The EU seemed to like the idea, and in a statement last week, said Microsoft's proposal "may potentially be more positive" as it pertains to the approximately 95 percent of customers it estimates will move to Windows 7 by buying new PCs.
However, the EU still saw fit to scold Microsoft for restricting choice for the 5 percent of customers who'll buy standalone versions of Windows 7 through retail. Instead, the EU wants Microsoft to include a variety of Web browsers in Windows and let customers choose.
"Microsoft has apparently decided to supply retail consumers with a version of Windows without a Web browser at all. Rather than more choice, Microsoft seems to have chosen to provide less,'' the European Commission said in a statement.
The EU in January charged Microsoft with violating European competition law by bundling Internet Explorer with Windows since 1996, and said the 2002 U.S. antitrust ruling on the same issue doesn't apply in Europe. The case was originally to be heard in April, but the EU has granted Microsoft's requests for more time to prepare its defense.
What's really bizarre is that while the EU pushes this case forward, it has relaxed its monitoring of Microsoft's compliance with a 2004 antitrust ruling. In that case, the EU found Microsoft guilty of abusing its "near monopoly" with Windows to squeeze competitors in other markets and hit the company with a then-record $613 million fine.
Of course, fining Microsoft is one of the EU's favorite pastimes. In March 2008, the EU slapped Microsoft with a $1.35 billion fine for overcharging open-source developers for Windows server operating system communications protocols. To date, European regulators have levied about $2.5 billion in fines against Microsoft.
Regardless of whether you believe that Microsoft acted illegally in bundling IE with Windows, the EU antitrust furor is getting out of hand. But for Microsoft, there's a glimmer of hope: The EU last month shifted its antitrust sights to Intel, hitting the chip maker with a record $1.45 billion fine for violating EU antitrust rules at the expense of competitors, customers and consumers.