EU probe into Windows 2000

EU probe into Windows 2000
Adrian Croft

BRUSSELS, FEB 9: The European Union said on Wednesday it has launched a probe into whether Microsoft Corp's new operating system breaks EU competition law by allowing it to gain a stranglehold over server software and ultimately electronic commerce.

If the allegations against Microsoft are proven, the EU's executive Commission said it could force the US software giant to make changes to its next generation Windows 2000 operating system, due to be launched on February 17, or impose a fine.pIn a surprise announcement, EU Competition Commissioner Mario Monti said the Commission sent Microsoft a formal request for information last week after receiving allegations about Windows 2000. Microsoft has four weeks to reply. "I have given the green light to start an examination into certain new features of Microsoft's next generation of operating system marketed under the name of Windows 2000," Monti told a news conference. End-users, small computer businesses and competitors of Microsoft had alleged it had designedparts of Windows 2000 in a way which would allow it to extend its dominance in personal computer operating systems to server operating systems and ultimately electronic commerce, Monti said.

Servers are powerful computers used to manage networks of other machines. "Whoever gains dominance in the server software market is likely to control E-commerce too," Monti said.

According to the allegations, Microsoft through Windows 2000 had bundled its personal computer operating system with its own server software and other Microsoft software products, known as middleware "in a way which permits only Microsoft products to be fully interoperable," Monti said.

"Microsoft's competitors, which do not have access to the interfaces, would therefore ... be put at a significant competitive disadvantage," he said. "On the basis of all the information gathered we will examine if the allegations are well founded," Monti said.

Asked whether Microsoft could be forced to delay the launch of Windows 2000, Monti said it wasup to the company to decide. If the allegations were proven, Microsoft "would have to cease the abuse committed and therefore modify their programmes," Monti said, adding fines could also be imposed. Monti said the Commission had also reopened a probe into Microsoft's pricing policy in France. An EU court ruled in December that the European Commission had been wrong to dismiss a French software wholesaler's complaint against Microsoft.

The French company, Micro Leader Business, had alleged that Microsoft had abused position by preventing it from buying cheaper software in Canada for resale in France. "We have already started re-examining the case in accordance with the court's findings. Microsoft will have to provide information on its pricing policy and provide reasons for any possible differences in prices " Monti said.