Microsoft Corporation’s Response to the Japanese Fair Trade Commission’s Recommendations
July 26, 2004
Microsoft believes that the licensing contracts concerned are not in violation, and looks forward to further explaining its views and fostering understanding of its position at JFTC hearings.

TOKYO, July 26, 2004 — Microsoft Corporation received a Recommendation from the Japanese Fair Trade Commission (JFTC) on July 13, 2004, finding that Microsoft is in contravention of Japans Antimonopoly Act. After careful examination of the contents of the Recommendation, Microsoft has decided that it is unable to accept the demands of the Recommendation, and has today informed the JFTC of this decision.

The JFTC Recommendation finds that Microsoft has, when licensing its Windows operating system to PC makers, imposed undue restrictions on their business activities, and as such, is in breach of Article 19 of the Antimonopoly Act. However, Microsoft believes that the licensing contracts concerned are not in violation of any of the Antimonopoly Act, and as such has decided not to accept the JFTCs Recommendation.

Microsoft looks forward to further explaining its views and fostering understanding of its position at JFTC hearings.

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