After nearly a decade-long battle, Microsoft Corp. has announced that it is stepping down from its anti-trust fight with the European Commission, and says it will allow competitors access to technology that could create innovation in the market.
The result of the 2004 decision made by the Commission, requiring Microsoft to provide information allowing third partydevelopers and competitors access to that technology would be lower prices and more choices for customers.
Microsoft agreed to three substantial changes that willbring them into compliance with the decision, the first being that “opensource” software developers will be able to access interoperabilityinformation. Secondly, royalties payablefor the information will be reduced to a nominal one-off payment of 10,000euros (roughly $14,200). And third,royalties for a worldwide license including patents will be reduced from 5.95percent to 0.4 percent.
“The Commission willremain vigilant to ensure that Microsoft continues to respect its complianceobligations and does not engage in other anti-competitive behavior. I havealways said that open source software developers must be able to take advantageof this remedy: now they can.” — Neelie Kroes, EU Competition Commissioner
“I welcome that Microsoft has finally undertaken concrete steps toensure full compliance with the 2004 Decision,” said EU CompetitionCommissioner Neelie Kroes in a statement. “It is regrettable thatMicrosoft has only complied after a considerable delay, two court decisions,and the imposition of daily penalty payments. However, the measures that theCommission has insisted upon will benefit computer users by bringingcompetition and innovation back to the server market. The Commission willremain vigilant to ensure that Microsoft continues to respect its complianceobligations and does not engage in other anti-competitive behavior. I havealways said that open source software developers must be able to take advantageof this remedy: now they can.”
The Commission said it will adopt a decision as soon as possible onthe pending case regarding past unreasonable pricing forinteroperability information. Microsoft, inaddition, has ongoing obligations to continue complying with the 2004 decision,and if the company fails to do so, the Commission can issue a new decision toimpose daily penalties.
Microsoft yesterday issued the following statement regarding theannouncement:
“At the time the Court of First Instance issued its judgment in September,Microsoft committed to taking any further steps necessary to achieve fullcompliance with the Commission’s decision. We have undertaken a constructivediscussion with the Commission and have now agreed on those additional steps.We will not appeal the CFI’s decision to the European Court of Justice and willcontinue to work closely with the Commission and the industry to ensure aflourishing and competitive environment for information technology in
The company now provides two separate licensing agreements to companies that wish to obtain the information as foreseen by the 2004 decion’s remedy. The first, a “No Patent Agreement, allows licensees to the iinteroperability nformation, but without taking a license for patents which the company claims necessary.