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Earlier today, Microsoft and European Commission (EC) regulators concluded settlement discussions without reaching a resolution to the European antitrust case. The EC is expected to issue a ruling against the company next week.
"I believe we reached agreement on the issues of the case," said Steve Ballmer, chief executive officer of Microsoft. "But we were unable to agree on principles for new issues that could arise in the future."
Mario Monti, the EC's competition commissioner, praised Microsoft's attempt to reach a settlement, saying, "I would like to stress the constructive and co-operative spirit displayed by Microsoft in the last few weeks. I also want to acknowledge the high degree of professionalism of the members of the Microsoft team at all levels."
Background on EC Antitrust Case
The EC began its investigation after Sun Microsystems filed a complaint in 1998. The EC first focused on the server market, and later expanded its investigation to include media players. Microsoft faces strong competition in both of these markets.
In November 2003, Microsoft defended its right to innovate during a closed-door hearing before EC competition regulators. Since that time, the company has negotiated virtually nonstop in an attempt to address the EC's concerns.
Innovation Benefits Consumers
While Microsoft worked hard to achieve a settlement, the company did not want to sacrifice its ability to bring new innovations to consumers. "We have to ensure that the law is not just about competitors' complaints about the impact of new features. Consumers must be part of the equation," said Brad Smith, senior vice president and general counsel of Microsoft.
Microsoft will closely examine the details of the forthcoming EC ruling and then determine its next steps. "I hope that perhaps we can still settle the case at a later stage," added Ballmer.
Stay Tuned For Updates From The FIN
We will continue to keep FIN members informed about the progress of this case. For more information about policy debates and news about Microsoft, visit the FIN Web site at www.microsoft.com/freedomtoinnovate.
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