D-Day for Microsoft on EU's penalties

Microsoft's battle with the European Commission is set to reach a climax today, when the software giant will be fined and disciplined…

Microsoft's battle with the European Commission is set to reach a climax today, when the software giant will be fined and disciplined for abusing its Windows monopoly.

Mr Mario Monti, Competition Commissioner, has called for Microsoft to be fined €497 million for trying to shut out competitors in other markets. The figure could be adjusted by the 20 European Commissioners at a meeting today, but significant changes are thought unlikely.

A draft of the Commission decision says Microsoft broke EU competition law by "failing to provide the information" needed by its rivals for computer servers and by "making the supply of Windows... conditional" on the inclusion of its Media Player program. The Commission argues that Microsoft unfairly disadvantaged rivals by withholding technical codes that allow Windows-based personal computers to work better with servers.

Microsoft contends that the information is its own intellectual property.

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The draft decision gives Microsoft 120 days to reveal the information needed by companies involved in "developing and distributing" rival server products. - (Financial Times Service)