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Microsoft sneaks in under EU deadline

by Iain Thomson

02 Jun 2005

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Microsoft has submitted its response to the EU over its anti-trust case with less than 24 hours to spare.

The EU had been preparing to hit Microsoft with fines worth five per cent of its global turnover after the company was fined £340m for abusing its market position.

A response from Microsoft had been demanded by midnight on 1 June and the company has confirmed that the proposals have been submitted.

"We are working hard with the Commission to address any outstanding issues and we remain committed to comply with the decision," said a Microsoft spokesman.

However, some analysts have questioned whether these are serious proposals or merely a delaying tactic.

"Apparently, the new proposal from Microsoft had very little new in it, and the Commission has already indicated its dissatisfaction with the earlier proposals. It looks as though fines are likely," said David Bradshaw, principal analyst at Ovum.

"This issue will clearly run and run, but at the end of the day there will be only one set of winners: the lawyers."

Bradshaw explained that, if the decision goes against Microsoft, the Commission will issue formal objections, leaving Redmond with two weeks to resubmit. After that the fines will commence, based on current global turnover.

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