Microsoft EU Antitrust Case
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Case Details:
Case Code : BENV005
Case Length : 16 Pages
Period : 1998-2006
Pub Date : 2006
Teaching Note :Not Available
Organization : Microsoft
Industry : Information Technology and Related Services
Countries : US, European Countries
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction Contd...
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The outcome of the case was critical for Microsoft since it was planning to
release its new O/S Vista in 2007. Moreover, the case had been a drag on the
company's European operations as the company had been under constant pressure
from the EC to comply with its regulations.
Commenting on this, Kim Caughey, equity analyst at Fort Pitt Capital Group said,
"I would have to say that I don't know how much it really affects the day-to-day
operations, but it is a big deal for the company. They need to prove they can
get along in other economies than the United States."8
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EC Issues 'Statement of Objections'
The clash between the EU and Microsoft began when, on February 09, 2000,
just before the release of Windows 2000 O/S9, the EC's Commissioner for
Competition, Mario Monti (Monti) announced that the launch of Windows 2000
O/S along with server software, could breach EU's antitrust rules (Refer
Table I for list of O/S released by Microsoft).
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The
announcement was made in response to the complaint filed by Sun in
December 1998, alleging that Microsoft had breached EU antitrust rules
by not disclosing necessary information regarding its Windows O/S for
interoperability10 and that the company followed a discriminatory
licensing policy by giving the information to only selected competitors.
Sun's contention was that Microsoft's dominant position in Windows
client O/S required it to reveal its interface information to
competitors to allow them to manufacture server software (non-Microsoft)
that facilitated interoperability with PCs using Windows O/S11. |
Microsoft refused to provide such information regarding
Windows 95, 98, NT 4.0, and the latest Windows 2000, to Sun. This meant that
people using Windows O/S could use only Windows server O/S for achieving
complete interoperability. This affected the business of competing server O/S
manufacturers like Sun...
Excerpts >>
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