Microsoft Antitrust Case Continues in Europe

The proposed settlement between Microsoft and the U.S. Department of Justice for now does not change the European Commission's investigation into the practices of the software maker, a Commission spokesperson said Monday.

Elements of the proposed settlement, announced Friday in the United States, could affect the European probe of Microsoft, but it is much too early to tell, according to Amelia Torres, a Commission representative.

"There might be certain features in the U.S. settlement which might or might not have an impact on the Commission's own investigation involving Microsoft," she said. The Commission, the European Union's executive body, is going ahead with its antitrust investigation.

"The investigation is ongoing and it's at a preliminary stage," Torres said.

Separate Fight

Microsoft realizes a settlement in the U.S. lawsuit won't end its case in Europe, but the company said it hopes to settle with the Commission as well.

"We suspect that the Commission will take a look at this settlement. We're engaged in a process with the European Commission and as we have wanted to settle this matter (in the United States), so would we like to appropriately settle the matter with the European Commission," said Microsoft President and Chief Executive Officer Steve Ballmer at a news conference Friday at Microsoft headquarters in Redmond, Washington.

Although the software company has reached a tentative settlement with the Justice Department, it's unclear whether the 18 states that were also plaintiffs in the case are agreeing to its terms. The attorney general of at least one state, Massachusetts, has indicated the jurisdiction will pursue a separate settlement or continue the case in court.

Similar Charges

The European Commission is investigating whether Microsoft violated European rules to extend its position in the market for low-end server operating systems by using its dominant position in PC operating systems, and also is examining Microsoft's software bundling tactics, with Windows Media Player a particular focus.

The commission decided not to try to delay the launch of Windows XP, which shipped October 25. But the organization said it would continue its study, merging two cases into one investigation of Microsoft's operating system development and marketing strategy.

One case was originally brought by Sun in 1998. The company alleged Microsoft was using Windows to muscle rivals out of the market for operating system software, and alleged discriminatory licensing. The commission itself began the second investigation in February 2000, to consider Microsoft's procedure with Windows 2000.

The European Commission, the executive body of the European Union, says Microsoft may have violated European antitrust rules by "using illegal practices to extend its dominant position in the market for personal computer operating systems into the market for low-end server operating systems."

Paul Meller in Brussels contributed to this report.