[Am-info] Balmer to offer "bribes" in europe?

[Mike Stephen]

cp technology news
Tuesday, Mar 16, 2004 	
	
Microsoft CEO Ballmer in 11th-hour talks with EU antitrust officials

BRUSSELS (AP) - Microsoft Corp. chief executive Steve Ballmer held 
11th-hour talks Tuesday with the European Union antitrust chief, just a 
week ahead of a final decision on a long-running antitrust case against 
the world's biggest software company.

Ballmer met with EU Competition Commissioner Mario Monti for a couple of 
hours at the EU head office in Brussels, the Belgian capital.

"There has been a meeting today and the discussions are ongoing," EU 
spokeswoman Amelia Torres told reporters after the talks broke up.

There was no immediate indication when they would resume, or where.

Also attending Tuesday's meeting was Brad Smith, Microsoft's senior 
vice-president for law and corporate affairs. Microsoft spokesman Tom 
Brookes said afterward, "We are actively engaged with the commission" in 
trying to reach an overall settlement.

He added he did not know if there would be any more high level meetings.

Tuesday's session came a day after antitrust advisers from the 15 EU 
countries approved the commission's draft ruling that the software giant 
had broken antitrust law. A final decision is expected on March 24.

Sources have said the EU draft finds Microsoft abused its Windows 
monopoly and demands changes in the way the company operates.

Microsoft is seeking to avert a far-reaching order that could result in 
a fine of up to $3 billion US and also force the company to change the 
way it sells its flagship Windows to computer-makers in Europe.

Given the size of the EU market, such an order could have global 
implications for Microsoft, which argues its practice of continually 
adding new features to Windows benefits consumers. Rivals complain it 
amounts to unfair competition.

A negative decision would be the biggest setback for Microsoft since a 
U.S. judge found it guilty of antitrust violations involving Internet 
browsers in 2000. Microsoft reached a settlement with the Bush 
administration a year later, allowing it to keep its Internet Explorer 
in Windows with some conditions.

Sources say the EU's draft ruling similarly finds Microsoft abused its 
monopoly in computer operating software to gain share in markets for 
digital media players and low-end servers. But the remedies sought go 
beyond the U.S. deal.

The EU wants Microsoft to offer computer makers a version of Windows 
without the Windows Media Player to give rivals like RealNetworks Inc. a 
better shot at getting onto consumer desktops. It also would demand 
Microsoft release more basic Windows code to improve "interoperability" 
with competing networking software made by Sun Microsystems and others.

The national antitrust regulators reconvene next Monday to consider the 
size of the fine against Microsoft. The commission is expected to adopt 
the decision as early as March 24 and set out a time frame, usually a 
matter of months, for compliance.

© The Canadian Press, 2004