Microsoft under the European monopoly spotlight

Microsoft will again be under the microscope for anti-competitive behaviour when the European Commission (EC) holds two days of meetings with industry representatives next month.

Mario Monti, the European Union (EU) competition commissioner, has earmarked 20 to 21 December for the hearing which will be held before EU commissioners, directorates and representatives from member states.

Under discussion is the statement of objectives issued by the EC outlining the facts and legal theories on which its anti-trust case could be built.

The EC's case is seen by many industry observers as a last attempt to rein in Microsoft.

"The company has a long standing history of abusive, monopolistic power and this has been upheld by 17 federal judges at three different levels of judicial power. But Microsoft wasn't even given a rap on the knuckles - it was more like a hand massage," said Ed Black, chairman of the Computer & Communications Industry Association.

Black is currently in Europe to hold discussions with Monti. He has high hopes that the European investigators will be less politically motivated than was the case in the US.

There have been wide ranging US reports that the Bush administration applied pressure on the US Department of Justice to have the case dropped following large donations - tens of millions of dollars - made by the software company to George W Bush's presidency campaign.

Black claimed Monti is unlikely to suffer the same humiliating climb-down as Charles James, US assistant attorney general, in agreeing to a watered down settlement.

"Charles James is not having fun right now as there is not a single investor or commentator who has not said this is a win for Microsoft. Everyone agrees on this and Monti is unlikely to be embarrassed the way James has or leave himself open to this sort of vulnerability."

Black said the onus was on the EC to enforce a structured remedy.