Microsoft Gives in to European Demands
Posted on: Tuesday, 25 January 2005, 06:00 CST
SEATTLE -- Within a few weeks, Microsoft will do what it has long claimed was impossible: supply a version of its flagship Windows software with the media player stripped out.
The software giant on Monday announced it will no longer dispute a European judge's refusal to postpone antitrust sanctions imposed by the European Commission. The agency has ordered Microsoft to deliver a version of Windows, sans media player, in products sold in Europe.
''Microsoft's focus now is on working constructively with the commission,'' the company said in a statement.
Yet while conceding the fight, the company is not surrendering the war. Microsoft continues to appeal the broader case, challenging the commission's authority to impose what it considers unfair limitations on how it designs products.
The European Commission ruled last March that Microsoft used illegal antitrust practices by making it difficult for RealNetworks and others to bundle competing media players -- which play digital music and video -- with the Windows desktop PC operating system.
It also ruled that Microsoft illegally hindered Sun Microsystems, Novell and others from developing business applications that worked well with Windows server software, and ordered Microsoft to share more proprietary software code.
Microsoft's appeal is expected to take at least two years. European officials have said they will fight hard to preserve the commission's latitude in policing anti-competitive business practices.
''The real potential for damage lies in setting a precedent that the commission can tell Microsoft what features it may or may not put into its most important product,'' says Matt Rosoff, tech industry analyst at research firm Directions on Microsoft.
Microsoft remains intent on reversing the commission's findings. Yet abiding by the sanctions in the meantime should cause little damage, analysts say.
Nothing requires European computer manufacturers to sell Windows PCs lacking a Windows media player. ''There's no demonstrated consumer demand for a version of Windows with less functionality,'' Rosoff says.
What's more, Microsoft now routinely issues upgrades to the media player via the Internet. Consumers increasingly download the latest media player via the same free service -- Windows AutoUpdate -- Microsoft uses to issue security patches.
''It's actually more convenient for Microsoft to let people download the media player for themselves,'' says Rob Enderle, principal analyst at the Enderle Group. ''It helps ensure a high percentage of people are using the latest version.''
Source: USA TODAY
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