Microsoft plays nice with the EU

Microsoft's general counsel has pledged to comply with the judgement of the European Court of First Instance, and has said that the EU Competition Commission was correct to punish the company.

Brad Smith said at a press conference for European journalists that Microsoft will work hard to rectify the issues contained in the judgement.

However, Smith stated that he had only read the ruling once since its release, and that the decision had not yet been made on whether to appeal.

"The first question to address as a company is what we will do to ensure we comply with the judgement," he said.

"We are 100 per cent committed to complying with every decision of the court. The decision is not what we hoped for, and to say so would be less than candid. But it does provide clarity and we hope to develop our relationship with the EU. "

Referring to the aspect of the case related to Microsoft's bundling of Media Player, Smith said that Microsoft had been selling a version of Windows without the player for the past two years.

But he maintained that it is important for the company to also offer a full version.

Microsoft said that will continue to work with the EU to resolve differences over the licensing of its interoperability software.

Smith noted that the price currently being charged for the 8,000 pages of technical documentation represented one per cent of revenues, but that if the EU felt that this was still too high then Microsoft would work to comply.

"We will license on reasonable terms the technologies important to interoperability," he confirmed.

"We are open for business when it comes to licensing technology important for interoperability. If price is, in the Commission's view, too high we will work hard to make sure that the price is suitable."

Smith also committed to expanding Microsoft's business and R&D in the EU over the years to come.

He said that in 1998, when the complaint was made, Microsoft spent just €3m on R&D in Europe but that this had now risen to €500m and would rise further.

But Smith could not resist a dig or two at Apple, pointing out that Microsoft's old adversary has around 70 per cent of the EU media player market.

"In digital music Apple is far and away the leader in the field," he said. " Apple does not license its communications protocol, and it does not appear that Microsoft has held back the [media player] market in any way."

Smith refused to say whether he had discussed the content of the report with Microsoft chairman Bill Gates, pointing out that, given the timing of the report, everyone in Seattle was just waking up.

He had, however, called members of the Commission to congratulate them on the work they had put in.

Microsoft's competitors, meanwhile, have been revelling in the decision.

"Red Hat would like to congratulate the Commission, and particularly Neelie Kroes and her services, for their persistence and courage in bringing this matter to a successful result," said Matthew Szulik, chairman of Red Hat.

"The Court has confirmed that competition law prevents a monopolist from simply using its control of the market to lock in customers and stifle new competitors.

"In our business, interoperability information is critically important and cannot simply be withheld to exclude all competition."