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Microsoft prepares fightin' words

by Paul Thurrott  on Aug 8, 2003

A day after European Union (EU) antitrust regulators laid down a scathing series of charges against Microsoft, the stunned company said that it was reviewing the evidence and preparing an official response.

But representatives from the software giant said Wednesday that they hadn't been prepared in advance for the media circus that arose in the wake of the EU announcement because antitrust regulators there never informed the company that it was filing charges. Instead, Microsoft officials learned about the event from news reports, they said.

"We are examining [the] contents [of the EU statement] thoroughly now to assess the concerns in detail," a Microsoft spokesperson said. "It is somewhat unfortunate as it lengthens the proceedings that have already been going on for three years. [But] we take this investigation very seriously and will work hard to focus our efforts, responding to concerns and bringing this to a positive resolution."

When asked about the EU's ability to fine Microsoft up to $US3 billion dollars; require company to unbundle Windows Media Player (WMP) from Windows, or offer a Windows version that also includes rival media player software; and open up its server software application programming interfaces (APIs) to competitors; the company had little to say. "We're not going to speculate today on outcomes or suggested remedies," the spokesperson said, noting that Microsoft had previously taken steps to address antitrust concerns in Europe.

Yesterday's filing represents "Microsoft's last chance to respond," according to EU antitrust chief Mario Monti, who said that the software giant has 30 days to submit a formal response to his commission.

After that, the EU will issue its decision, which could potentially include the aforementioned remedies and a cash fine. If the EU does rule against Microsoft as expected, it will likely be the biggest legal setback the company has ever faced, given its settlement of the landmark US antitrust case. "The final decision is months rather than years away now," an EU representative said.

Copyright (c) 2003 CMP Media LLC

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