Saturday, April 7, 2007

Familiar news: EU tightens screws on Microsoft

In an anti-trust ruling from 3 years back, the European Commission had ordered that Microsoft had to license technical information to competing companies (IBM, Sun, and Oracle) so that they make their softwares work better with the Windows platform.
For Microsoft, complying with the order would have been hard to do, since it never believed that it was doing anything wrong; more so, because the European Commission was far stricter than US regulatory authorities on finding Microsoft guilty of anti-trust.
As a result, Microsoft demanded around 5.95% of these competing companies server revenues for royalty purposes. This is a pretty high amount, given that margins are not very high, and companies would be very unwilling to pay such revenues.
Now it seems that the European Commission is proposing that this demand from Microsoft be rejected, with objections from the commission stating that this demand was very high. A response from Microsoft is awaited.
Read this story here.

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