After US court ‘deal’ Microsoft must face the wrath of Europe

AFTER a court settlement by Microsoft in the US, the battle now shifts to Europe where Competition Commissioner Mario Monti may soon impose his own set of sanctions against the software giant.

Monti will make a preliminary decision by the end of the year whether to act against Microsoft for allegedly abusing dominance in its Windows operating system.

US District Judge Colleen Kollar-Kotelly on Friday last endorsed Microsoft’s anti-trust settlement with the United States Justice Department and nine states. The agreement sets remedies for Microsoft’s illegal abuse of monopoly power.

After Friday’s closing bell, Microsoft’s stock jumped above $56 from its close at $53 on the Nasdaq and market watchers will today be seeing how investors react to the landmark decision.

A Microsoft representative said that in the interests of trans-Atlantic consistency the company hopes the US decision will become a reference point. “Legally they (the European Commission) are free to do whatever they deem appropriate,” said Horacio E Gutierrez, associate general counsel for Microsoft in Europe. He said it was conceivable the Commission might take steps inconsistent with Kollar-Kotelly’s decision.

However, a strong critic of Microsoft said the Brussels case is different and the Commission must act independently. “The settlement does not reach over to do anything to cure the problem in Europe,” said Ed Black, president of the Computer and Communications Industry Association in Washington.

EU officials have always said their case was different from the US Justice Department approach. On the other hand they’ve also said that before acting they wanted to see what the judge’s ruling would be. The European Commission says that Microsoft bundles its Media Player with its ubiquitous Windows operating system, putting rivals such as RealNetworks and Apple Computer’s QuickTime at a disadvantage.