Microsoft Details Antitrust Concessions
Less than a week after Microsoft submitted its final plan to comply with antitrust remedies imposed by the European Commission in March 2004, EU officials have backed away from harsh rhetoric and are praising the offer. Microsoft says it made "tough concessions," but continues to refuse demands to open source its server protocols.
"I am happy that Microsoft has recognized certain principles which must underlie its implementation of the Commission's decision," European Competition Commissioner Neelie Kroes said in a statement.
Despite initial concerns, there are no outstanding issues regarding the demand that Microsoft unbundle Windows Media Player from its operating systems, Kroes said.
Still, the Commission is not entirely content with Microsoft's response to the requirement that it license the source code to its Windows protocols in order to allow better interoperability between different platforms. The code would enable third-party systems, such as game consoles, to better communicate with Microsoft systems.
A disagreement revolved around pricing for the protocols, which ran as much as $600 per server, and Microsoft's refusal to give access to open source projects. Now, Microsoft says it will provide some source code free of charge and make the program available to developers around the world, as opposed to just those in Europe.
But Microsoft says it will not allow open source projects full access to the technology, saying the protocols may only be used if published under a separate licensing agreement. An independent party appointed by the EU commission will now evaluate the royalty proposal during a two-week market test period.
"We worked to be creative in enabling developers to work with our technology together with open source software, yet still protect our intellectual property. Our proposal addresses this objective," said Microsoft General Counsel Brad Smith. "While we have not reached agreement with the Commission on whether open source developers can go even farther and publish the source code that implements our technology, we are comfortable turning to the courts for guidance on this issue."
After market testing is complete, the EU Commission will determine if Microsoft has complied with the ruling against it. Under EU policies, it has the right to fine Microsoft up to five percent of its daily sales if it deems the company is not following orders.
"I remain determined to ensure that all elements of the decision are implemented," Kroes said. "This includes the ability for developers of open-source software to take advantage of the remedy."