Associated Press
WASHINGTON — Microsoft Corp. asked European antitrust enforcers to accept the terms of the proposed settlement it negotiated with the Bush administration in its U.S. trial, saying complaints it faces in Europe will be "inevitably affected" by concessions it made in the deal with the White House.
Microsoft’s confidential response to the antitrust case in Europe, outlined in a 102-page court filing obtained by The Associated Press, said "all of the areas" of the most recent antitrust complaints in Europe were covered by the U.S. settlement, which the trial judge must still approve.
Microsoft urged EU antitrust officials to consider what it described as the "extraordinary nature" of its proposed U.S. settlement, including a provision that requires it to disclose technical details about how its powerful Windows server software sends data over computer networks.
"No other commercial software company operates under such strictures," Microsoft’s lawyers wrote.
The EU is investigating complaints that Microsoft is leveraging its monopoly in Windows operating-system software for desktop computers to compel consumers also to use its server software. Some of Microsoft’s newest features, for securing sensitive data and moving information more easily onto laptops, require both server and desktop computers running different versions of Windows.
Microsoft’s response in Europe is significant because it suggests which sanctions are possible and it fears most. Microsoft’s arguments also suggest an emerging courtroom strategy as its U.S. antitrust trial proceeds in federal court here.
In its U.S. case, the judge has set a Friday deadline for government lawyers to propose new penalties against Microsoft. Nine states and the Justice Department have already agreed to settle the case, but nine other states are pressing ahead in court for tougher sanctions.
The company told EU enforcers that changes it agreed to make under the settlement "cover subject matters that are squarely within the scope" of the European case.
Microsoft’s court filing made clear that the EU is considering requiring the company to broadly disclose sensitive blueprints for its flagship Windows software. Microsoft warned against what it called a "sweeping remedy" that it said would enable its largest rivals — such as IBM and Sun Microsystems Inc. — to develop nearly identical "clone" software at relatively little expense.
Microsoft also identified rivals AOL-Time Warner Inc., Novell Inc. and Oracle Corp. as complaining about it to European regulators.
Microsoft acknowledged the charge that it has designed some of its most compelling features to require Windows running on both servers and desktop computers, but called that "irrelevant to competition law." The company said many businesses successfully use both Windows and non-Windows operating systems on the same networks.
Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.