Monday, January 19, 2009

Microsoft charged with monopoly abuse

Microsoft is harming competition by bundling Internet Explorer with Windows, according to a new ruling by the European Commission.
"Microsoft's tying of Internet Explorer to the Windows operating system harms competition between web browsers, undermines product innovation and ultimately reduces consumer choice," says a statement from the Commission.
The verdict comes at the end of a year-long investigation that was instigated at the behest of rival Opera software. The charges were officially delivered as a Statement of Objections to Microsoft's Redmond headquarters last Thursday, and the company now has eight weeks to respond.
Microsoft says it is studying the commission's preliminary findings, and may request a formal hearing.
European Commission and Microsoft. Five-years ago, the company was fined over 1.6 billion euros for similiar offences. This was followed by an 899 million euro fine last year for late compliance.
Opear was jubliant on the verdict: "On behalf of all internet users, we commend the Commission for taking the next step towards restoring competition in a market that Microsoft has strangled for more than a decade," says Jon von Tetzchner, CEO of Opera Software.
"The Commission's Statement of Objections demonstrates that the Commission is serious about getting Microsoft to start competing on the merits in the browser market and letting consumers have a real choice of internet browsers," he says.
Opera says it is still waiting to see if the Commission will pursue its second charge against Microsoft, that it is undermining open software standards on the internet.
Internet Explorer is still the world's most dominant browser, despite its market share dipping below 70% in 2008 as Firefox gains ground. According to web analytics company Net Applications, Opera currently holds around 0.71% of the global market

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