Microsoft opponents file new antitrust complaint against U.S. software giant in Europe

Tuesday, February 11th 2003, 12:00 am

By: News On 6

BRUSSELS, Belgium (AP) _ A coalition of computer, telephone and Internet companies announced a new offensive in their battle against Microsoft Corp., accusing it of violating European antitrust law with its Windows XP operating system.

The Washington-based Computer & Communications Association said Monday it filed a formal, confidential complaint Jan. 31 with the European Commission, which enforces EU competition laws.

A Microsoft spokeswoman at the company's European headquarters in Paris, Tiffany Steckler, declined to comment directly on the complaint. She said some of the issues raised appeared to be addressed in U.S. litigation, but added ``it's up to the European Commission to decide.''

A Commission spokeswoman said the new complaint would be examined, but would not affect the investigation that has been underway for more than three years into Microsoft, which officials hope to wrap up in coming months.

``I do not expect it will be delaying our conclusion of the ongoing complaint,'' said EU spokeswoman Amelia Torres. Competition Commissioner Mario Monti said in December he expects to close the case in the ``first part'' of 2003.

Torres refused to elaborate, but sources said the commission staff have yet to present their draft recommendation to Monti, who then plans to submit it to a newly created ``devil's advocate'' panel for review.

Microsoft also has yet to make its final presentation, although Steckler said information is exchanged ``all the time.''

In that case, EU investigators accuse Microsoft of abusing its dominance of the market for PC operating systems _ its ubiquitous Windows software _ to muscle its way into related markets for media and server software.

The new complaint focuses on Windows XP, the latest Microsoft operating system, which was released at the end of 2001.

``Windows XP takes Microsoft's abusive practices to a new level, illegally protecting Microsoft's existing monopolies and ... illegally eliminating competition in new software and service markets,'' it said.

In the 260-page complaint, the group charges that:

_ The program's user interface is biased toward Microsoft's own software, making life difficult for competing products;

_ Microsoft is refusing to fully disclose document formats for its Office suite of applications;

_ Microsoft is imposing proprietary technologies and abusive licensing to shut out competing products;

_ It is leveraging its dominant positions in old markets, such as e-mail, and new ones such as handheld computing devices and smart phone software.

``Only competitive markets can deliver choice, innovation and fair prices for consumers,'' said Ed Black, president and chief executive of the CCIA. ``It is therefore imperative to take steps to preserve competition in these and related markets.''

The CCIA's members include America Online, Kodak, Sun Microsystems, Nokia, UPS, Yahoo, Casio, Verizon and Fujitsu.

Microsoft argues that its settlement with U.S. authorities last year, combined with additional steps it has taken voluntarily, should be enough to answer the European challenge. It fears regulators will demand it remove integrated components from its Windows system, such as the Media Player.

The commission has no authority to break up Microsoft or order divestitures, but it can fine the company up to 10 percent of its worldwide sales _ potentially an enormous sum for a company that earns more than $30 billion annually.