Microsoft Corp.’s failure to settle a five-year European Union antitrust case may set a precedent for
deeper regulatory scrutiny of the company’s software development plans for everything from handheld computers to mobile phones, Bloomberg reports.
“There is a fundamental conflict that may not be solvable,”
Mark Schechter, a Washington antitrust lawyer who negotiated
a settlement with Microsoft as a Justice Department attorney in
1994 told Bloomberg. “(Microsoft’s) business model is built on bundling new applications
into their software. They’re probably very nervous about the
notion that there will be ongoing regulatory oversight.”
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The EU accuses Microsoft of abusing the monopoly of its
personal computer operating system, which powers about 95 percent
of PCs, to stifle competition in markets for servers and music and
video software, Bloomberg reports.
Microsoft, based in Redmond, Washington, incorporates software such as Web browsers, e-mail programs and music players in Windows. It has resisted attempts in both the U.S. and Europe
to force it to change. The current probe began with a complaint from
Sun Microsystems Inc. in December 1998 and broadened to include
the Windows Media Player in August 2001, Bloomberg reports.
Microsoft’s revenue in the year to June 2003 rose 13 percent
to $32.2 billion. Sales for mobile devices, such as handheld
computers and so-called smart phones, rose 23 percent to $153
million in the same year, according to Bloomberg data.
Bloomberg News
