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Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • MEMO/09/15 Brussels, 17th January 2009
  • The European Commission can confirm that it has sent a Statement of Objections (SO) to Microsoft on 15th January 2009. The SO outlines the Commission’s preliminary view that Microsoft’s tying of its web browser Internet Explorer to its dominant client PC operating system Windows infringes the EC Treaty rules on abuse of a dominant position (Article 82).
  • In the SO, the Commission sets out evidence and outlines its preliminary conclusion that Microsoft’s tying of Internet Explorer to the Windows operating system harms competition between web browsers, undermines product innovation and ultimately reduces consumer choice. The SO is based on the legal and economic principles established in the judgment of the Court of First Instance of 17 September 2007 (case T-201/04), in which the Court of First Instance upheld the Commission's decision of March 2004 (see IP/04/382), finding that Microsoft had abused its dominant position in the PC operating system market by tying Windows Media Player to its Windows PC operating system (see MEMO/07/359).
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  • The evidence gathered during the investigation leads the Commission to believe that the tying of Internet Explorer with Windows, which makes Internet Explorer available on 90% of the world's PCs, distorts competition on the merits between competing web browsers insofar as it provides Internet Explorer with an artificial distribution advantage which other web browsers are unable to match. The Commission is concerned that through the tying, Microsoft shields Internet Explorer from head to head competition with other browsers which is detrimental to the pace of product innovation and to the quality of products which consumers ultimately obtain. In addition, the Commission is concerned that the ubiquity of Internet Explorer creates artificial incentives for content providers and software developers to design websites or software primarily for Internet Explorer which ultimately risks undermining competition and innovation in the provision of services to consumers.
  • Microsoft has 8 weeks to reply the SO, and will then have the right to be heard in an Oral Hearing should it wish to do so. If the preliminary views expressed in the SO are confirmed, the Commission may impose a fine on Microsoft, require Microsoft to cease the abuse and impose a remedy that would restore genuine consumer choice and enable competition on the merits.
  • A Statement of Objections is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them. The addressee of a Statement of Objections can reply in writing to the Statement of Objections, setting out all facts known to it which are relevant to its defence against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case. The Commission may then take a decision on whether conduct addressed in the Statement of Objections is compatible or not with the EC Treaty’s antitrust rules. Sending a Statement of Objections does not prejudge the final outcome of the procedure. In the March 2004 Decision the Commission ordered Microsoft to offer to PC manufacturers a version of its Windows client PC operating system without Windows Media Player. Microsoft, however, retained the right to also offer a version with Windows Media Player (see IP/04/382).
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    It's official, hot off the presses (wasn't there a few minutes ago). We're now into a process where DG Competition will revisit its previous order requiring Microsoft to market two versions of Windows, one with Media Player and one without. DG Competition staff were considerably outraged that Microsoft took advantage of a bit of under-specification in the previous order and sold the two versions at the same price. That detail will not be neglected this time around. Moreover, given the ineffectiveness of the previous order in restoring competition among media players, don't be surprised if this results in an outright ban on bundling MSIE with Windows.
Paul Merrell

EU looks into telecoms blocking Internet calls - International Herald Tribune - 0 views

  • European Union regulators are looking into whether mobile phone operators who block customers from making inexpensive wireless calls over the Internet are breaking competition rules. The European Commission, the EU antitrust authority, has sent questionnaires to phone companies asking what "tools" they use to "control, manage, block, slow down or otherwise restrict or filter" Internet-based voice calls. The EU deadline for responding to the survey was Tuesday. The questionnaire, obtained by Bloomberg News, does not identify any companies. Some mobile carriers have blocked services that use voice-over-Internet protocol, or VoIP, which allows users to make calls over the Web. Companies may be seeking to stop customers from accessing applications, like eBay's Skype, to defend voice revenue from the less expensive Internet services, Carolina Milanesi, research director for mobile devices at Gartner, the research company, said.
    • Paul Merrell
       
      Building a Connected World --- The Role of Antitrust Law and Lawyers.
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    Superficially, this sounds like an application of the principles won by DG Competition in the Court of First Instance's Commission v. Microsoft interoperability decision. But note that here we deal with an investigation into deliberately-created interop barriers rather than those maintained by withholding full communication protocol specifications from competitors. Notice that the investigation encompasses throttling of internet connections for particular uses, an increasingly common practice by Comcast and other ISPs in the U.S., where both VOIP and P2P file-sharing are targeted uses. E.U. and U.S. antitrust law are similar, as efforts to harmonize antitrust law on both sides of The Pond are now decades old; this move does not bode well for bandwidth throttling in the U.S., particularly when aimed at throttling competition. It takes no giant mental leap to apply such principles to big vendor-dominated IT standards bodies that deliberately create or maintain interop barriers in data format standards. Indeed, DG Competition Commissioner Neelie Kroes has already served notice that interop barriers in standards-setting is an item of interest.
Paul Merrell

Microsoft Loses E.U. Antitrust Case - washingtonpost.com - 0 views

  • It ordered the software giant to untie the browser from its operating system in the 27-nation E.U.
  • The commission's investigation into Microsoft's Web-surfing software began a year ago, after the Norwegian browser-maker Opera Software filed a complaint. Opera argued that Microsoft hurt competitors not only by bundling the software, in effect giving away the browser, but also by not following accepted Web standards. That meant programmers who built Web pages would have to tweak their codes for different browsers. In many cases, they simply designed pages that worked with market-leading Internet Explorer but showed up garbled on competing browsers.
  • At the time of the complaint, Opera said it was asking E.U. regulators to either force Microsoft to market a version of Windows without the browser, or to include other browsers with Windows.
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    The Post too says that DG Competition ordered the unbundling of MSIE from Windows. But again no attribution for the statement. They also leave the impression that Opera's complaint regarding the undermining of open web standards was upheld, something not stated in either the Microsoft or DG Competition announcements. So the questions of the day are: [i] did the Commission order the unbundling of MSIE from Windows; and [ii] did the Commission also rule on the undermining of open web standards. The latter question could be of critical importance in the still ongoing proceeding regarding the ECIS complaint in regard to the undermining of ODF by Microsoft pushing OOXML.
Paul Merrell

Microsoft Ordered to Delete Browser - NYTimes.com - 0 views

  • BRUSSELS (AP) — The European Union said Friday that Microsoft’s practice of selling the Internet Explorer browser together with its Windows operating system violated the union’s antitrust rules. It ordered the software giant to untie the browser from its operating system in the 27-nation union, enabling makers of rival browsers to compete fairly.
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    The Times goes farther than the DG Competition announcement, saying that Microsoft has been ordered to untie MSIE from Windows throughout the E.U. No source is attributed for the statement. The DG Competition announcement does not state what remedy it proposes to order. So take this report with a grain of salt. The Times is well capable of error.
Paul Merrell

EU/Antitrust cases from 39514 to 39592 - 0 views

  • COMP/39.530 - Microsoft (Tying) Microsoft 14.01.2008 MemoAntitrust: Commission initiates formal investigations against Microsoft in two cases of suspected abuse of dominant market position 14.01.2008 Opening of Proceedings Concerns economic activity: C33.2
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    When the DG Competition statement of objections regarding the tying of MSIE to Windows appears, it should appear here, under COMP/39.530.
Paul Merrell

Microsoft Statement on European Commission Statement of Objections: Statement of Object... - 0 views

  • REDMOND – Jan. 16, 2009 – “Yesterday Microsoft received a Statement of Objections from the Directorate General for Competition of the European Commission. The Statement of Objections expresses the Commission’s preliminary view that the inclusion of Internet Explorer in Windows since 1996 has violated European competition law. According to the Statement of Objections, other browsers are foreclosed from competing because Windows includes Internet Explorer.
  • The Statement of Objections states that the remedies put in place by the U.S. courts in 2002 following antitrust proceedings in Washington, D.C. do not make the inclusion of Internet Explorer in Windows lawful under European Union law.
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    Microsoft's version of events, notable for the statement that DG Competition included a specific ruling that it is not bound by the U.S. v. Microsoft decision in the U.S. That only states the obvious, but is perhaps intended to forestall somewhat Microsoft arguments that the legality of its bundling was conclusively determined in the U.S. case. If so, it may have worked; Microsoft makes no such claim in this press release.
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • The Commission found that Intel engaged in two specific forms of illegal practice. First, Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs from Intel. Intel also made direct payments to a major retailer on condition it stock only computers with Intel x86 CPUs. Such rebates and payments effectively prevented customers - and ultimately consumers - from choosing alternative products. Second, Intel made direct payments to computer manufacturers to halt or delay the launch of specific products containing competitors’ x86 CPUs and to limit the sales channels available to these products.
  • Intel awarded major computer manufacturers rebates on condition that they purchased all or almost all of their supplies, at least in certain defined segments, from Intel: Intel gave rebates to computer manufacturer A from December 2002 to December 2005 conditional on this manufacturer purchasing exclusively Intel CPUs Intel gave rebates to computer manufacturer B from November 2002 to May 2005 conditional on this manufacturer purchasing no less than 95% of its CPU needs for its business desktop computers from Intel (the remaining 5% that computer manufacturer B could purchase from rival chip maker AMD was then subject to further restrictive conditions set out below) Intel gave rebates to computer manufacturer C from October 2002 to November 2005 conditional on this manufacturer purchasing no less than 80% of its CPU needs for its desktop and notebook computers from Intel Intel gave rebates to computer manufacturer D in 2007 conditional on this manufacturer purchasing its CPU needs for its notebook computers exclusively from Intel.
  • Furthermore, Intel made payments to major retailer Media Saturn Holding from October 2002 to December 2007 on condition that it exclusively sold Intel-based PCs in all countries in which Media Saturn Holding is active.
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  • In its decision, the Commission does not object to rebates in themselves but to the conditions Intel attached to those rebates.
  • Intel structured its pricing policy to ensure that a computer manufacturer which opted to buy AMD CPUs for that part of its needs that was open to competition would consequently lose the rebate (or a large part of it) that Intel provided for the much greater part of its needs for which the computer manufacturer had no choice but to buy from Intel. The computer manufacturer would therefore have to pay Intel a higher price for each of the units supplied for which the computer manufacturer had no alternative but to buy from Intel. In other words, should a computer manufacturer fail to purchase virtually all its x86 CPU requirements from Intel, it would forego the possibility of obtaining a significant rebate on any of its very high volumes of Intel purchases. Moreover, in order to be able to compete with the Intel rebates, for the part of the computer manufacturers' supplies that was up for grabs, a competitor that was just as efficient as Intel would have had to offer a price for its CPUs lower than its costs of producing those CPUs, even if the average price of its CPUs was lower than that of Intel.
  • For example, rival chip manufacturer AMD offered one million free CPUs to one particular computer manufacturer. If the computer manufacturer had accepted all of these, it would have lost Intel's rebate on its many millions of remaining CPU purchases, and would have been worse off overall simply for having accepted this highly competitive offer. In the end, the computer manufacturer took only 160,000 CPUs for free.
  • Intel also interfered directly in the relations between computer manufacturers and AMD. Intel awarded computer manufacturers payments - unrelated to any particular purchases from Intel - on condition that these computer manufacturers postponed or cancelled the launch of specific AMD-based products and/or put restrictions on the distribution of specific AMD-based products. The Commission found that these payments had the potential effect of preventing products for which there was a consumer demand from coming to the market. The Commission found the following specific cases: For the 5% of computer manufacturer B’s business that was not subject to the conditional rebate outlined above, Intel made further payments to computer manufacturer B provided that this manufacturer : sold AMD-based business desktops only to small and medium enterprises sold AMD-based business desktops only via direct distribution channels (as opposed to through distributors) and postponed the launch of its first AMD-based business desktop in Europe by 6 months. Intel made payments to computer manufacturer E provided that this manufacturer postponed the launch of an AMD-based notebook from September 2003 to January 2004. Before the conditional rebate to computer manufacturer D outlined above, Intel made payments to this manufacturer provided that it postponed the launch of AMD-based notebooks from September 2006 to the end of 2006.
  • The Commission obtained proof of the existence of many of the conditions found to be illegal in the antitrust decision even though they were not made explicit in Intel’s contracts. Such proof is based on a broad range of contemporaneous evidence such as e-mails obtained inter alia from unannounced on-site inspections, in responses to formal requests for information and in a number of formal statements made to the Commission by the other companies concerned. In addition, there is evidence that Intel had sought to conceal the conditions associated with its payments.
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    This is an uncharacteristically strong press release from DG Competition. I still must read the order, but the description of the evidence is incredible, particularly the finding of concealment of its rebate conditions by Intel.
Paul Merrell

Opera executive praises EU move | Beyond Binary - CNET News - 0 views

  • In a case of convenient timing, Opera Software's top developer happened to be in CNET's office just after Microsoft disclosed that the European Union has objected to Microsoft's bundling of a Web browser into Windows.
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    Opera quotes about DG Competition announcement.
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • Did the Commission co-operate with the United States on this case? The Commission and the United States Federal Trade Commission have kept each other regularly and closely informed on the state of play of their respective Intel investigations. These discussions have been held in a co-operative and friendly atmosphere, and have been substantively fruitful in terms of sharing experiences on issues of common interest.
  • Where does the money go? Once final judgment has been delivered in any appeals before the Court of First Instance (CFI) and the Court of Justice, the money goes into the EU’s central budget, thus reducing the contributions that Member States pay to the EU. Does Intel have to pay the fine if it appeals to the European Court of First Instance (CFI)? Yes. In case of appeals to the CFI, it is normal practice that the fine is paid into a blocked bank account pending the final outcome of the appeals process. Any fine that is provisionally paid will produce interest based on the interest rate applied by the European Central Bank to its main refinancing operations. In exceptional circumstances, companies may be allowed to cover the amount of the fine by a bank guarantee at a higher interest rate. What percentage of Intel's turnover does the fine represent? The fine represents 4.15 % of Intel's turnover in 2008. This is less than half the allowable maximum, which is 10% of a company's annual turnover.
  • How long is the Decision? The Decision is 542 pages long. When is the Decision going to be published? The Decision in English (the official language version of the Decision) will be made available as soon as possible on DG Competition’s website (once relevant business secrets have been taken out). French and German translations will also be made available on DG Competition’s website in due course. A summary of the Decision will be published in the EU's Official Journal L series in all languages (once the translations are available).
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”
  • Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.
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    "In addition, the Commission opened a second antitrust investigation into Amazon's business practices that might artificially favour its own retail offers and offers of marketplace sellers that use Amazon's logistics and delivery services (the so-called "fulfilment by Amazon or FBA sellers"). In particular, the Commission will investigate whether the criteria that Amazon sets to select the winner of the "Buy Box" and to enable sellers to offer products to Prime users, under Amazon's Prime loyalty programme, lead to preferential treatment of Amazon's retail business or of the sellers that use Amazon's logistics and delivery services. The "Buy Box" is displayed prominently on Amazon's websites and allows customers to add items from a specific retailer directly into their shopping carts. Winning the "Buy Box" (i.e. being chosen as the offer that features in this box) is crucial to marketplace sellers as the Buy Box prominently shows the offer of one single seller for a chosen product on Amazon's marketplaces, and generates the vast majority of all sales. The other aspect of the investigation focusses on the possibility for marketplace sellers to effectively reach Prime users. Reaching these consumers is important to sellers because the number of Prime users is continuously growing and because they tend to generate more sales on Amazon's marketplaces than non-Prime users. If proven, the practice under investigation may breach Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position. The Commission will now carry out its in-depth investigation as a matter of priority"
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    On the filed charges, the violation seems to be fairly clear-cut and straightforward to prove. (DG Competition has really outstanding lawyers.) I suspect the real fight here will be over the remedy.
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • As regards interoperability, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies as regards interoperability disclosures. In the complaint by ECIS, Microsoft is alleged to have illegally refused to disclose interoperability information across a broad range of products, including information related to its Office suite, a number of its server products, and also in relation to the so called .NET Framework. The Commission's examination will therefore focus on all these areas, including the question whether Microsoft's new file format Office Open XML, as implemented in Office, is sufficiently interoperable with competitors' products. As for the tying of separate software products, in its Microsoft judgment of 17 September 2007, the Court of First Instance confirmed the principles that must be respected by dominant companies. In a complaint by Opera, a competing browser vendor, Microsoft is alleged to have engaged in illegal tying of its Internet Explorer product to its dominant Windows operating system. The complaint alleges that there is ongoing competitive harm from Microsoft's practices, in particular in view of new proprietary technologies that Microsoft has allegedly introduced in its browser that would reduce compatibility with open internet standards, and therefore hinder competition. In addition, allegations of tying of other separate software products by Microsoft, including desktop search and Windows Live have been brought to the Commission's attention. The Commission's investigation will therefore focus on allegations that a range of products have been unlawfully tied to sales of Microsoft's dominant operating system.
    • Paul Merrell
       
      Note the scope of the original complaint now being prosecuted by DG Competition: [i] tying MSIE to Windows; [ii] adding proprietary tehnology to MSIE that conflict with open internet standards; [iiii] tying desktop search and Windows Live, presumably to Vista. Initial press reports of the DG Competition statement of objections mention only the tying of MSIE to Windows issue,. So we do not yet know whether the other complaints are being prosecuted. But perhaps worthy of note, the press's acknowledged source of information iis Microsoft, which has incentives to soft-pedal the scope of the objections. Also note from the press reports that the Comission has not yet announced its position on the ECIS complaint involving Office and OOXML.
Paul Merrell

Antitrust Week Continues: EU Slams Intel With $1.45b Fine - Law Blog - WSJ - 0 views

  • Most likely, we grant you, it was coincidence. But we couldn’t help notice the timing: Two days after the DOJ’s new antitrust head, Christine Varney, publicly repudiates her predecessors by pledging to ramp up enforcement on so-called “single-firm” monopolistic behavior, the European Union takes a sledgehammer to Intel Corp., fining it $1.45 billion for alleged monopolistic activity. The fine is the largest ever assessed for monopoly abuse. Click here for the WSJ story, from Charles Forelle; here for the NYT story; here for the NYT story; here for the FT story; here for the Commission’s statement; here for Intel’s response.
    • Paul Merrell
       
      See my earlier Diigo bookmark quoting the DG Competition statement that it had coordinated with the U.S. Justice Dept. in its simultaneous and ongoing investigation of INtel.
  • John Pheasant, an antitrust practitioner at Hogan & Hartson in London and Brussels, told the Law Blog that some of the evidence does “not look very good for Intel,” adding that “if the facts are there, this type of conduct is more likely to be regarded as abusive if practiced by a dominant company. . . .”
  • On Varney’s statement from earlier this week, Kroes said the Justice Department’s stance gave her a “huge positive feeling. The more competition authorities joining us in our competition philosophy, the better it is.”
Paul Merrell

Alfresco Press Releases - Alfresco Gives Microsoft Office Users a SharePoint Alternative - 0 views

  • Alfresco Software today announced the availability of Alfresco Labs (Beta) 3, the open source alternative to Microsoft® SharePoint®.  Alfresco Labs 3, formerly called Alfresco Community, offers Microsoft users greater choice by providing them with the first open source fully-compatible SharePoint repository.  With Alfresco Labs 3, companies can leverage existing investments in Linux and Java as well as Microsoft .NET connection software to significantly reduce their SharePoint total cost of ownership and maximize their hardware and software investments.  Alfresco Labs 3 will be available for download at http://wiki.alfresco.com/wiki/Alfresco_Labs_3
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    Earlier this year, Microsoft was pressured by the European Commission's DG Competition into releasing, inter alia, the communications protocols for Sharepoint/Office interactions. To my knowledge, Alfresco is the first open source ECM to support those protocols, allowing Alfresco integration with Office and/or Sharepoint Server.
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    Most quality online stores. Know whether you are a trusted online retailer in the world. Whatever we can buy very good quality. and do not hesitate. Everything is very high quality. Including clothes, accessories, bags, cups. Highly recommended. This is one of the trusted online store in the world. View now www.retrostyler.com
Paul Merrell

News - Antitrust - Competition - European Commission - 0 views

  • Google inquiries Commission accuses Google of systematically favouring own shopping comparison service Infographic: Google might be favouring 'Google Shopping' when displaying general search results
  • Antitrust: Commission sends Statement of Objections to Google on comparison shopping service; opens separate formal investigation on AndroidWed, 15 Apr 2015 10:00:00 GMTAntitrust: Commission opens formal investigation against Google in relation to Android mobile operating systemWed, 15 Apr 2015 10:00:00 GMTAntitrust: Commission sends Statement of Objections to Google on comparison shopping serviceWed, 15 Apr 2015 10:00:00 GMTStatement by Commissioner Vestager on antitrust decisions concerning GoogleWed, 15 Apr 2015 11:39:00 GMT
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    The more interesting issue to me is the accusation that Google violates antitrust law by boosting its comparison shopping search results in its search results, unfairly disadvantaging competing shopping services and not delivering best results to users. What's interesting to me is that the Commission is attempting to portray general search as a separate market from comparison shopping search, accusing Google of attempting to leverage its general search monopoly into the separate comoparison shopping search market. At first blush, Iim not convinced that these are or should be regarded as separable markets. But the ramifications are enormous. If that is a separate market, then arguably so is Google's book search, its Google Scholar search, its definition search, its site search, etc. It isn't clear to me how one might draw a defensible line taht does not also sweep in every new search feature  as a separate market.   
Paul Merrell

MICROSOFT CORP (Form: 10-Q, Received: 01/22/2009 09:02:43) - 0 views

  • In January 2008 the Commission opened a competition law investigation related to the inclusion of various capabilities in our Windows operating system software, including Web browsing software. The investigation was precipitated by a complaint filed with the Commission by Opera Software ASA, a firm that offers Web browsing software. On January 15, 2009, the European Commission issued a statement of objections expressing the Commission’s preliminary view that the inclusion of Internet Explorer in Windows since 1996 has violated European competition law. According to the statement of objections, other browsers are foreclosed from competing because Windows includes Internet Explorer. We will have an opportunity to respond in writing to the statement of objections within about two months. We may also request a hearing, which would take place after the submission of this response. Under European Union procedure, the European Commission will not make a final determination until after it receives and assesses our response and conducts the hearing, should we request one. The statement of objections seeks to impose a remedy that is different than the remedy imposed in the earlier proceeding concerning Windows Media Player.
  • While computer users and OEMs are already free to run any Web browsing software on Windows, the Commission is considering ordering Microsoft and OEMs to obligate users to choose a particular browser when setting up a new PC. Such a remedy might include a requirement that OEMs distribute multiple browsers on new Windows-based PCs. We may also be required to disable certain unspecified Internet Explorer software code if a user chooses a competing browser. The statement of objections also seeks to impose a significant fine based on sales of Windows operating systems in the European Union. In January 2008, the Commission opened an additional competition law investigation that relates primarily to interoperability with respect to our Microsoft Office family of products. This investigation resulted from complaints filed with the Commission by a trade association of Microsoft’s competitors.
Paul Merrell

EC Ruling: Statement by Intel President and CEO Paul Otellini - 0 views

  • "Intel takes strong exception to this decision. We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal." "We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don't perform the market acts accordingly."
  • "Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we're in compliance with their decision.
Paul Merrell

Rapid - Press Releases - EUROPA - 0 views

  • The Commission has found that Intel excluded its competitor in two ways: through illegal loyalty rebates by paying manufacturers and retailers to restrict the commercialisation of competitors' products.These illegal actions were designed to preserve Intel's market share at a time when their only significant rival - AMD - was a growing threat to Intel's position. This threat was widely recognised by both computer manufacturers and in Intel's own internal documents seen by the Commission. The computer manufacturers involved are Acer, Dell, HP, Lenovo and NEC. The retailer involved is Media Saturn Holdings, the parent company of Media Markt.
  • Naturally, the Commission favours strong, vigorous price competition, including by dominant firms. However, Intel went beyond normal price competition by giving rebates to computer manufacturers on the condition that they bought all, or almost all, of their CPUs from Intel. Intel also made direct payments to a major retailer – Media Markt - on the condition that it stocked only computers with Intel CPUs.
  • Just to give you one example: in one case, a computer manufacturer took up only a small part of an offer by AMD of free CPUs because acceptance of all the free CPUs offered would have led that computer manufacturer to breach the conditions of its agreement with Intel and to lose rebates on all its much more numerous Intel purchases.
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  • Intel made direct payments to computer manufacturers to halt or delay the launch of products using their rival's chips, and to limit their distribution once available. The Commission has specific, documented examples, of Intel paying other manufacturers to, for example, delay the launch of an AMD-based PC by six months, and to restrict the sales of AMD-based products to certain customers.
  • The Commission Decision contains evidence that Intel went to great lengths to cover-up many of its anti-competitive actions. Many of the conditions mentioned above were not to be found in Intel’s official contracts. However, the Commission was able to gather a broad range of evidence demonstrating Intel's illegal conduct through statements from companies, on-site inspections, and formal requests for information.
  • Finally, I would like to draw your attention to Intel's latest global advertising campaign which proposes Intel as the "Sponsors of Tomorrow." Their website invites visitors to add their 'vision of tomorrow'. Well, I can give my vision of tomorrow for Intel here and now: "obey the law".
Paul Merrell

Excite News - EU files antitrust charges against Google - 0 views

  • BRUSSELS (AP) — The European Union's competition chief is filing an antitrust complaint alleging Google has been abusing its dominance in Internet searches and is opening a probe into its Android mobile system.EU Competition Commissioner Margrethe Vestager said Wednesday she is "concerned that the company has given an unfair advantage to its own comparison shopping service."Vestager said the separate antitrust probe into Android will investigate whether the Internet giant relies on anti-competitive deals and abuses its dominant position in Europe's mobile market.Vestager said her chief goal was to make sure multinationals "do not artificially deny European consumers as wide a choice as possible or stifle innovation".Google's general counsel Kent Walker wrote late Tuesday that a "statement of objections" to Google's business practices was to be released by Vestager Wednesday.
Gonzalo San Gil, PhD.

European Commision vs Microsoft: chronology of the case - 1 views

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    "1998 Sun complains to the EC on Microsoft's dominant position as a supplier of operating systems for personal computers. 02/2000 EC launches investigation on Microsoft's anti-competitive conduct ("Case No. COMP/C-3/37.792"). Two main issues are under investigation: (1) lack of interoperability information, and (2) incorporation of Windows Media Player with the Windows operating system."
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    EC v. Microsoft was a landmark advance in the law governing software interoperability. In the preceding case in the U.S., the courts refused to set a standard for the degree of "compatibility" that Microsoft would have to provide competitors. Forewarned, the DG Competition prosecutors had done their homework. Commission v. Microsoft, No. T-167/08, European Community Court of First Instance (Grand Chamber Judgment of 17 September, 2007), para. 230, 374, 421, http://preview.tinyurl.com/chsdb4w (rejecting Microsoft's argument that "interoperability" has a 1-way rather than 2-way meaning; information technology specifications must be disclosed with sufficient specificity to place competitors on an "equal footing" with Mictrosoft's own software in regard to interoperability; "the 12th recital to Directive 91/250 defines interoperability as 'the ability to exchange information and mutually to use the information which has been exchanged'").
Paul Merrell

Update: EU hits Microsoft with new antitrust charges - 0 views

  • January 16, 2009 (Computerworld) Microsoft Corp. confirmed today that European Union regulators have formally accused the company of breaking antitrust laws by including the company's Internet Explorer (IE) browser with the Windows operating system. "Yesterday, Microsoft received a Statement of Objections from the Directorate General for Competition of the European Commission," the company said in a statement on Friday. "The Statement of Objections expresses the Commission's preliminary view that the inclusion of Internet Explorer in Windows since 1996 has violated European competition law." According to Microsoft, the EU claimed that "other browsers are foreclosed from competing because Windows includes Internet Explorer."
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