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Microsoft is about to engulf the workgroup server market, according to the EU
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Microsoft guilty of 'abusive' market tactics

European Competition Commissioner threatens Redmond again

Jane Hoskyn, vnunet.com 26 Mar 2007
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Microsoft is using "abusive behaviour" to dominate the software market, according to the European Union's top antitrust official. 

European Competition Commissioner Neelie Kroes told MEPs that Microsoft is using "illegal tactics" to edge out competition, and threatened the software giant with punitive fines for defying Commission rulings.

"Microsoft is constantly gaining market share, and that is worrying me," she said.

Kroes added that, left to its own devices, Microsoft would engulf the workgroup server market and obliterate any competition.

Microsoft's market share has grown from 35 to 40 per cent in 1999 to around 75 per cent today.

The company's tactics were first investigated by the Commission three years ago, when it was fined a record €497m (£337m) for abusing Windows' dominance of office PC networks.

Commissioners found that Windows PCs are easier to connect using Microsoft products than with products from rivals such as Sun Microsystems and Linux vendors. 

Microsoft appealed against the Commission's demand that it share interoperability information with competitors, claiming that the information is patent-protected intellectual property.

The appeal failed, and last July the Commission imposed a further €280.5m (£190m) fine for failure to comply. Earlier this month the Commission threatened even more fines.

Microsoft has until July to reply to the latest charges.

See also:

European Union regulators have unanimously approved a ruling against Microsoft and could impose a fine of up to €2m a dayRegulators prepare to follow through on anti-monopoly ruling  04 Jul 2006
Microsoft could be forced to pay fines of €2m a day for not complying with the European Commission's demandsLawyers pleased with hearing so far  31 Mar 2006
Microsoft came out fighting today over threats by European Union regulators that Windows Vista would be banned from shops if it was uncompetitiveVista OK, but major back peddling on work group servers  31 Mar 2006
The EU's top antitrust regulator wrote to Microsoft on 20 March expressing concerns about VistaAntitrust regulator may object to certain bundled features  29 Mar 2006

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