The European Commission gave Microsoft Corp. one more chance to remedy monopolistic behavior.
“The commission has gathered additional evidence from a wide variety of consumers, suppliers and competitors. This evidence confirms and in many respects bolsters the commission’s earlier finding that Microsoft is leveraging its dominant position from the PC into low-end servers and that Microsoft’s tying of Windows Media Player to the Windows PC operating system weakens competition on the merits, stifles product innovation and ultimately reduces consumer choice,” said the EC.
Nearly two years ago, the EC began investigating whether Microsoft was using its dominant-market position to tie its Windows Media Player with its Windows operating system. A stripped down version of both products is used in Pocket PC software for personal digital assistants and smart phones.
The EC said Microsoft could either sell a version of Windows without Media Player or it would have to carry Media Player’s competitors, such as products from RealNetworks Inc.
In addition, the EC has concerns about the way servers communicate with desktop computers that run the Windows operating system.
“This statement of objections, which includes the identification of appropriate remedies, gives Microsoft a last opportunity to comment before the commission concludes the case. We are determined to ensure that the final outcome is to the benefit of innovation and consumers alike,” said Mario Monti, EC competition commissioner.
Microsoft has about two months to respond, and a final decision is expected next year.
The Computer and Communications Industry Association, which counts Nokia Corp. as a member, in February asked the EC to break up Microsoft for what it believes is continuing monopolistic behavior. The EC announcement on Wednesday did not deal with these charges.
