Monti leaves door open for settlement over Microsoft anti-trust case

Date: 18/03/04

MARIO Monti, the commissioner for competition, left the door slightly ajar for a settlement in his anti-trust battle with Microsoft over allegations the company abused its dominant position.

Monti's aides raised the possibility of using new rules that enter into force on 1 May, which allow the EU executive to issue a negotiated 'commitments decision' instead of ruling against the company.

Such a deal would acknowledge illegal behaviour but would avert the need for fines - unless the Commission decided that Microsoft broke its promises. In that case, the company could then be fined up to 5% of its daily turnover.

But as European Voice went to press, top lawyers predicted Monti would go ahead next week with multi-million euro fines and tough concessions, after a panel of EU governments backed a draft decision.

This is believed to include demands that the company give rival computer companies, such as Sun Microsystems, more information about making their server software work with Windows. It is also expected to force it to give PC makers the choice of selling Windows minus the Media Player software. This would make it easier for rivals, such as RealPlayer, to sell alternative products.

David Wood, a former official in Monti's department, now an attorney with US firm Howrey Simon Arnold & White, said the Commission would likely need to fight a lengthy court battle to uphold its decision. But if the European Court of Justice agreed with Monti, it would be the best way to stop Microsoft committing similar alleged acts of anti-competitive behaviour.

"A commitments decision is easier to enforce and has some advantages from the Commission's point of view."

He said an accord would also avoid a messy court battle with Microsoft - although rivals would be likely to complain. "But," he added, "we have yet to see if Microsoft is committed to a meeting of minds with the Commission."

Dave Stewart, deputy-general counsel of RealNetworks, said anything less than a negative ruling next week would be a letdown for customers and Microsoft's rivals, now and in the future.

He told this newspaper: "A Commission decision would send a clear message to Microsoft that predatory conduct will not be tolerated and to entrepreneurs across Europe that innovative applications will be able to compete on their merits."