Focus switches to Europe in Microsoft anti-trust case

The European Commission (EC) is remaining tight-lipped about its Microsoft Windows 2000 investigation despite the dramatic ruling against the software giant in the US late on Monday night.

The EC is currently probing the company for allegedly abusing its power, following complaints that Microsoft products were bundled with Windows 2000 in such a way that only they would be fully interoperable with the operating system.

The Commission said yesterday that it is "too early to say" whether a separate European case will or will not be brought against the company. Michael Tscherny, competition spokesman for the EC, insisted that Judge Penfield Jackson's latest findings will be examined with great care. But he added that it is Commission policy not to comment on the legislative processes of other countries.

However, Mike Pullen, EU law specialist at Dibb Lupton Alsop, said if the Commission does launch a suit against Microsoft, and finds the company guilty of abusing its power under article 82 of the EU Treaty, then it could fine the company up to 10 per cent of its annual revenues.

"Given that Judge Penfield Jackson's judgement is in such strong language, then it could have a persuasive effect on what happens in Europe.

"If the US takes divestiture measures, then it might solve the problems that the Commission has with Microsoft. If this does not happen, then I guess the EU will order Microsoft to cease its business practices in Europe," said Pullen.

However, one industry analyst claimed the Commission has acted too late to be effective.

Chris Setz, director of the Network Professionals Association, said: "The European Commission has centred on a new product. To what extent have the processes been changed in that product since the anti-trust case began 18 months ago? It is unlikely Microsoft would risk monopoly allegations again with its latest product.

"If the Commission had acted earlier, which it should have done, then it could have found Microsoft guilty - but now it is too late," he said.