European Court Rules Against Microsoft [It's WAR against American businesses!]

AP via Yahoo! ^ | December 22, 2004 | RAF CASERT

[Brilliant]

BRUSSELS, Belgium - A European Union court ruled Wednesday that Microsoft Corp. must immediately divulge some trade secrets to competitors and produce a version of its flagship Windows operating system stripped of the program that plays music and video.

The 91-page ruling effectively thwarts Microsoft's attempt to delay, pending appeal, implementation of the EU's landmark antitrust decision in March that demanded changes in the software giant's business practices.

The implications for Microsoft are huge, though the company did not immediately disclose whether it intended to offer a version of Windows without the Media Player in Europe alone or more broadly. Software that plays media files is increasingly in demand as more consumers get broadband connections to the Internet and use their PCs as entertainment centers.

There is also the question of precisely what computer code Microsoft will share with competitors so that those companies' programs work better on networks run by Microsoft server software.

The Luxembourg-based European Court of First Instance found that Microsoft "has not shown that it might suffer serious and irreparable damage as a result of implementation of the contested decision," the court said.

"Microsoft's application for interim measures is therefore dismissed in its entirety," said the president of the court, Judge Bo Vesterdorf.

The EU was buoyant since its ruling was fully upheld and would force immediately compliance from Microsoft.

"Implementation of the Commission's March decision will not only benefit consumers of computer products in terms of choice of media players on computers and choice of work group servers, but also stimulate innovation," EU spokesman Jonathan Todd said.

"Today's order is important because it preserves the effectiveness of antitrust enforcement, in particular in fast-moving markets."

Nevertheless, Microsoft said the ruling still held encouraging comments on the case and hoped it would help reopen settlement talks with the European Commission. "There is ample room for us to continue to press forward with cause for optimism," said Microsoft counsel Brad Smith.

"While the court did not find immediate irreparable harm from the Commission's proposed remedies, the court recognized that some of our arguments on the merits of the case are well-founded and may ultimately carry the day when the substantive issues are resolved in the full appeal," the company said in a statement.

Microsoft said it would look closely at the order before deciding on its next step but will comply fully with the court order when it comes into force.

The full appeals process could take up to five years.

Though Microsoft reiterated its desire for settlement discussions, EU officials have said a court ruling in their favor would make it unlikely that the bloc's antitrust regulators would reopen talks.

"We are not in the process of renegotiation," said Todd.

Such talks had failed to make headway after EU antitrust regulators fined Microsoft a record 497 million euros ($666 million) and ordered the other measures. They had ruled that Microsoft abusively wielded its Windows software monopoly and locked competitors out of the market.

Microsoft had settled with four of the five major interveners in the EU's case. Novell Inc. and the Washington-based Computer and Communications Industry Association pulled out of the case following deals with Microsoft, and the company spent $2.4 billion to settle claims by Time Warner Inc. and Sun Microsystems Inc.

Seattle-based RealNetworks Inc., maker of a rival to Microsoft's digital Media Player application, is Microsoft's last big commercial opponent in the case.

"The court has taken an important step toward promoting robust competition in digital media, fostering technological innovation and giving consumers real choice," said Dave Stewart, deputy general counsel for RealNetworks. He said the company would "continue to cooperate with the Commission's efforts to stop Microsoft's unlawful attempt to control how music, movies and other digital content will be delivered in the future."

Vesterdorf had been assessing the case since the final hearings in early October.

Analysts predicted the financial impact on the company would not be huge. Microsoft has already counted the fine against its quarterly earnings, said Matt Rosoff, an analyst with Directions on Microsoft.

Rosoff also predicted the company wouldn't suffer much in the near term if it's forced to release a version of Windows without Media Player, because it's already prepared a version of the operating system without it.

Even if the court makes Microsoft put "Windows lite" on the market, Rosoff said he can't imagine many manufacturers would want it and consumers are not crying out for it either, he said. "I don't see a lot of consumer demand for a PC without Media Player," he said.

Rosoff said the biggest threat was that the ruling, compelling Microsoft to strip something out of its operating system, would set a legal precedent for similar lawsuits.

Mark Ostrau, an analyst with Fenwick and West, also said that the ruling would hamper Microsoft's ability to bundle as much software into its operating systems as it would like.

"The real key to Microsoft's success is its ability to bundle. So not being able to bundle, or having that risk every time they want to bundle, that really does cramp their style."

[Brilliant]

This is a brazen effort to exclude American business from Europe under the guise of antitrust regulation, and to allow EU businesses to steal Microsoft's trade secrets. My suggestion is that the US should retaliate by bringing antitrust actions against the German business software maker, SAP.

[SubMareener]

I hope Microsoft says: "Fine! We won't sell Windows in Europe."

[Brilliant]

Unfortunately, they are not saying that.

[E Rocc]

Telling them to clinton themselves and pulling out of the EU might be the best approach here. Let's see how the Euros function without access to what's become the world computer standard.

They'd probably lose only 50% or so of their European market, the rest being bought "gray market" in the US and Asia. That would hurt them less than Russian, Chinese, and Indian hackers getting access to their most critical intellectual property.

The Eurocrats are in dire need of a smackdown and MS might just be powerful enough to hand it to them.

-Eric

[Ironfocus]

Look for Apple's i-tunes to be next. The EU has a typical socialist not-built-here attitude towards US businesses. Maybe the US should sue SAP for the same thing that Microsoft was found guilty of.

[steve8714]

The Euros would buy Chinese pirate copies, and then the Euro/Kangaroo court would insist that M's copyrights and patents were invalid in the EU.
They are national socialists, why expect them to respect private property?
Hitler has now officially won World War II.

[CBart95]

"The full appeals process could take up to five years"

Game,set, match.

[Publius6961]

The 91-page ruling effectively thwarts Microsoft's attempt to delay, pending appeal, implementation of the EU's landmark antitrust decision in March that demanded changes in the software giant's business practices.

I'm no friend of Microsoft, but every time I see stuff like this coming from the Euroeunuchs, I immediately wonder why they never filed anti-trust rulings against OPEC...

[TommyDale]

Better yet, they should sell them Windows ME with a new name on it!

[Brilliant]

Fantastic. Call it "Windows EU". Even Windows ME could beat the competition in Europe, and it would drive the EU consumers nuts! (It would also not have the media player that the EU apparently finds so offensive).

[TommyDale]

Europe could call it Windows EU. We already call it "Windows EWWWWWWWW!

[hchutch]

Amen to that. Do they REALLY think Linux is the answer?

The EU needs Bill Gates more than Bill Gates needs them.

[Incorrigible]

Bump!

[geedee]

. . . I immediately wonder why they never filed anti-trust rulings against OPEC...

Damn good question, Publius. Or . . . why haven't we?

I've never thought about it before but some American company should take this up with the WTO or the European Courts or one of those numerous little busy-body organizations at The Hague.

Our companies keep getting nailed by the "World" bodies . . . why not either shine the light on some other countries and/or organizations who are TRULY evil? The World Bodies would then, probably, show themselves for that they TRULY are . . . like the UN, organizations set up for no other reason than to rein in the U.S.

BTW . . . I share your distrust of Microsoft and ANY ruling that would force them to face more competition WORLD-WIDE would be welcomed by me. Bill Gates is nothing more than a John D. Rockefeller with a monopoly on a different industry in a different time. There's no doubt in my mind that Microsoft stifles innovation with their protectionist policies.

[KwasiOwusu]

"This is a brazen effort to exclude American business from Europe under the guise of antitrust regulation, and to allow EU businesses to steal Microsoft's trade secrets. My suggestion is that the US should retaliate by bringing antitrust actions against the German business software maker, SAP."

We have the Microsoft-hating open source lunatics (who never saw a piece of intellectual property they never wanted to steal), the Bush-hating Rob Glaser of Real Networks and Scott McNealey of Sun Microsystems to thank for this blatant attempt by the Euro-nuts to steal American intellectual property and give it free of charge to the Europeans.

Time for swift retaliation against European companies doing business in America, starting with about the only European software company with any market share that counts, SAP, then moving on to take out the heavily subsidized Euro Airbus thieves.

If anyone wants to know why Europe is growing at a measly 0.1% , with unemployment averaging up to TWICE that in America at 11%, one only has to look at this vicious, evil rilling.
Time to launch a full scale counter-attack against this malicious declaration of trade war by the dopey Europeans.
Expect the Bush administration to cme out with vigoruus counter-measures aginst these evil, sleazy European IP thieves

[Nick Danger]

I've never seen such nutty stuff on a thread. "Pull out of Europe." Yeah, right. How many billions in revenue is that? For what... spite?

Besdies which, what the Yurps did here isn't a bad idea. Look what Microsoft did with the web browser: bundle IE, drive the other guys out, then sit on their butts... with no new features in how many years now? Why should they do the same thing with media browsers? Do people here want a tired, old "Windows Media Player" 3, 4, and 5 years from now? That's what happened with IE. Why wouldn't it happen here? The only new "features" Microsoft has been adding to the Media Player are the ones that manage the content on behalf of Hollywood and RIAA. That's not a bad thing, but it doesn't add any value for users.

There's a bunch of flag-waving, passive-aggressive hoo-hah in here that makes no sense. They should give up billions in revenue to show the Yurps "who's boss?" Oh yeah, Wall Street will just love that.

[hchutch]

Hey, we can't let the Euroweenies push our guys around here. Maybe it's time to go after Airbus and a few of these European consortiums that get government subsidies.

Hey, I use Mozilla, but between Bill Gates and the EU, I'll side with Bill Gates.

[longtermmemmory]

The EU is looking to replace the USA as the world's regulator. The EU is using regulations instead of guns.

The USA should figure out a way to make the euro collapse.

[Brilliant]

I do agree that they would be stupid to pull out, but I don't agree that the antitrust arguments make sense. They have not had significant innovation in the last 5 years or so because of the antitrust pressure that government has exerted on them. They don't want to compete too well.

And the reason the EU is doing this is not simply because they are a monopoly. They are doing it because they are an American company who competes too well against their domestic companies.

Our government, unfortunately, has done nothing to combat these actions by the EU, and in fact, has helped feed the frenzy in Europe by bringing its own antitrust suit against Microsoft.

[KwasiOwusu]

"BTW . . . I share your distrust of Microsoft and ANY ruling that would force them to face more competition WORLD-WIDE would be welcomed by me. Bill Gates is nothing more than a John D. Rockefeller with a monopoly on a different industry in a different time. There's no doubt in my mind that Microsoft stifles innovation with their protectionist policies."

That is nofrmal garbage from a normal Microsoft-hating open source lunatic.
I'd back Microsoft against the IP thieves of the open source movement and the EU any day, anytime.

Microsoft's IP is Microsoft's IP.
This is nothing but a blatant attempt by the sleazy open source fanatics to get the cretinous American-hating Euro-nuts to steal the IP of an American company.
There is always going to be strong reaction from President Bush to open declarations of against America, whether its from Al Quaeda vermin or a declaration of trade war by the equally insidious Euro-nasties of the EU against America.

Bill Gates is NOT Rockefeller, no matter how hard you keep shouting that piece of nonsense. I have read the history of Rockefeller, I suggest you do the same before you show even more ignorance.
Your pal judgePenfiled Jackson tried to pass on that piece of fraud too. The result? He got removed from the case by the entire appeals Court panel of judges for being a buffoon and breaking every single law of jurisprudence known to man in his handling of the Microsoft case.
If anyone sniffles competition, its the Communist Party Central Committee of the People's Republic of the Open Source Movement.