Linked by Thom Holwerda on Mon 17th Sep 2007 15:17 UTC, submitted by Rahul
Legal Microsoft suffered a stunning defeat on Monday when a European Union court backed a European Commission ruling that the US software giant illegally abused its market power to crush competitors. The European Union's second-highest court dismissed the company's appeal on all substantive points of the 2004 antitrustruling. The court said Microsoft, the world's largest software maker, was unjustified in tying new applications to its Windows operating system in a way that harmed consumer choice. The verdict, which may be appealed only on points of law and not of fact, could force Microsoft to change its business practices.
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MS should split themselves up
by MollyC on Tue 18th Sep 2007 18:28 UTC
MollyC
Member since:
2006-07-04

Regarding this particular case (I talk of the server protocol issue, since the WMP issue is a total joke, particularly since MS and Real settled their differences already), I think it's clear that this is about MS server competitors wanting to be able to mimic ActiveDirectory, without having to pay to license the ActiveDirectory tech. As such, it means that Microsoft spent millions in R&D to create ActiveDirectory, and big government wants to force Microsoft to give that tech away for free, at the point of a gun. (I hate to sound like a right-wing nut, but what they say is true, that when it comes down to it, all government law is ultimately enforced by force of arms.)

According to statements made by the EC commissioner, the goal is to bring down Microsoft's server marketshare (he talks of a bringing down their 95% share to ~50%, but Microsoft doesn't have 95% share in servers, so he doesn't even know what his own case is about, but whatever.) He has stated that he will keep punishing Microsoft and/or manipulating the market until he brings down MS's share.

Rather than continue to deal with the EU's laws, which are at odds with the US laws, eere I running Microsoft, I'd split the company into two companies: Microsoft and MS-Europe. The existing shareholders get shares in both companies, of course. To start with, MS-Europe gets all the IP that Microsoft has, and they sell the same products. But they begin to hire their own employees, eventually Microsoft and MS-Europe have completely different staffs, supporting the same product line. Then, Microsoft simply withdraws from the EU market, leaving that market to the new MS-Euro company.

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