Biggart Baillie Solicitors

Microsoft Loses Appeal - More Choice For Consumers?

Monday, October 01, 2007

by Colin Miller

Last week, the European Court of First Instance threw out Microsoft's appeal against the record £343 million fine imposed by the European Commission in 2004.  This recent ruling supports the commission's view that Microsoft's bundling of products is an abuse of its dominant position in the market.  Microsoft has been accused of making its operating systems and software difficult to integrate with competitor's products.  The company has making certain software obligatory when purchasing their operating systems and has been failing to provide comprehensive technical information to rivals.  With the company's Windows operating system in use by over 90% of personal computers worldwide, this move should open up choice for consumers.

EC President, Jose Manuel Barroso, said "This judgment confirms the objectivity and credibility of the commission's competition policy, which protects European consumer interests and ensures fair competition between businesses in the internal market."

Whilst many welcome this as a victory for consumers and innovative companies, others are concerned by the effect that this move will have on the market where bigger players will no longer compete for fear that success will bring regulatory intervention and fines. 

Neelie Kroes, the EU competition commissioner described the victory as 'bittersweet'.

For more information, please contact Colin Miller.