Microsoft looking to settle EU antitrust issues – until next time

July 8, 2009

Microsoft looking to settle EU antitrust issues - until next timeTo say Microsoft has a love/hate relationship with the European Union (EU) would be completely wrong. In reality, it’s a hate/hate relationship which has only gotten worse in the past few months. But both sides may now be looking to settle the remaining antitrust issues before more fines and sanctions against the company are imposed.

The EU has long held the view that Microsoft is abusing its monopoly on the continent and beyond. It does this by bundling software which has free and paid-for rivals with its Windows operating system, which only really has any competition from Apple Mac and Linux, both popular but still considered niche compared to Windows.

By making software such as Internet Explorer and Windows Media Player part of the Windows OS, Microsoft is pushing this on to the millions of consumers who use Windows-based PCs, at least according to the EU.

Microsoft has already been fined 1.68 billion euros ($2.4 billion) by the EU, and is currently embroiled in a bitter row about the inclusion of Internet Explorer in Windows. Microsoft cleverly avoided the antitrust claims by removing IE from the upcoming Windows 7 altogether in Europe. But the situation remains unresolved as far as the EU is concerned.

Now, according to Bloomberg, Microsoft is currently entered in preliminary talks concerning two additional antitrust issues. The company is thought to be keen to settle the cases before EU Competition Commissioner Neelie Kroes leaves office at the end of this year. Kroes is willing to try and settle the case without resorting to the use of sanctions against Microsoft.

The two probes still on the table are thought to be the one concerning Internet Explorer, and one concerning how Microsoft limits third-party software compatibility with Microsoft Office. The talks are confidential, with no details of what each side is willing to offer to secure a settlement, but someone in the know has clearly decided to talk.

What’s clear is that whether deals are brokered in regards to these two issues, there are bound to be more antitrust claims lurking just around the corner. Microsoft is constantly under scrutiny from the EU concerning how it does business and that situation is unlikely to change anytime soon.

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