Friday, December 25, 2009

European Commission once more proved that they can play GOD

Microsoft offered legally binding commitments to boost competition on the web browser market which was adopted by the European Commission. The Commission expressed it’s concerns that Microsoft may have tied its web browser Internet Explorer to the Windows PC operating system which will amounts to breach of EU rules on abuse of a dominant market position as envisaged under Article 102 of the Treaty on the Functioning of the European Union -TFEU.
Under the commitments approved by the European Commission, Microsoft will make available for five years in the European Economic Area (through the Windows Update mechanism) a " Choice Screen" enabling users of Windows XP, Windows Vista and Windows 7 to choose which web browser(s) they want to install in addition to, or instead of, Microsoft's browser Internet Explorer.
The commitments also provide that computer manufacturers will be able to install competing web browsers, set those as default and turn Internet Explorer off.
By way of a Statement of Objections sent to Microsoft by the European Commission on 15 January 2009 which outlined the European Commission’s preliminary view that Microsoft may have infringed Article 82 of the EC Treaty (now Article 102 of the Treaty on the Functioning of the European Union) by abusing its dominant position in the market for client PC operating systems through the tying of Internet Explorer to Windows.
The Commission take a view at first instance that competition was distorted by Microsoft tying Internet Explorer to Windows, because it offered Microsoft an artificial distribution advantage not related to the merits of its product on more than 90 per cent of personal computers. Furthermore, the Commission hold such a view that this tying hindered innovation in the market and created artificial incentives for software developers and content providers to design their products or web sites primarily for Internet Explorer.
The commitments filed by Microsoft and approved by the European Commission address these concerns. PC users, by means of the Choice Screen, will have an effective and unbiased choice between Internet Explorer and competing web browsers. This should ensure competition on the merits and allow consumers to benefit from technical developments and innovation both on the web browser market and on related markets, such as web-based applications.
The Commission's decision is based on Article 9 of Regulation 1/2003 on the implementation of EU antitrust rules. It takes into account the results of the market test launched in October 2009. This decision, which does not conclude whether there is an infringement, legally binds Microsoft to the commitments it has offered and ends the Commission's investigation. The Commission could impose a fine of up to 10% of Microsoft's total annual turnover without having to prove any violation of EU antitrust rules, if it turned out later that Microsoft broke its commitments. A review clause in the commitments allow the Commission to review the commitments in two years, as Microsoft will report regularly on the implementation of those commitments and under certain conditions make adjustments to the Choice Screen upon the Commission's request. Microsoft also made proposals in relation to disclosures of interoperability information that would improve interoperability between third party products and several Microsoft products, including Windows, Windows Server, Office, Exchange, and SharePoint.Competition Commissioner Neelie Kroes in a press release by the EC expressed that : "Millions of European consumers will benefit from this decision by having a free choice about which web browser they use. Such choice will not only serve to improve people's experience of the internet now but also act as an incentive for web browser companies to innovate and offer people better browsers in the future