It"s déjà vu all over again for Microsoft with the European Commission set to rule on March 24th that it has violated antitrust rules, now that the last-minute talks between the two have collapsed. But like earlier encounters with the U.S. Justice Department -- Microsoft probably will emerge unscathed. "Even if the ruling does stand, and the proposed fine and remedies are imposed, Microsoft"s business won"t be badly affected," Gartner business analyst David Smith notes in a new report.
Microsoft faces a possible fine of US$3.5 billion, which it has already allowed for in its budget, and likely will be required to ship two versions of Windows -- one without its Media Player bundled -- as part of the EC action. It also will have to share more product information with server manufacturers to promote greater interoperability with Windows.
Appeal Road
Microsoft has vowed to appeal the European Commission"s antitrust ruling. The sticking point appears to be Microsoft"s future conduct, according to statements made by company legal counsel Horatio Jutierrez and CEO Steve Ballmer, who beat a path across the Atlantic in hopes of salvaging its position before the EC. However, Microsoft was, "unable to agree on principles for new issues that could arise in the future," Ballmer says in a statement.