Microsoft Dragging Feet, Says EU

Software Giant Not Complying With EU Ruling, Official Says

(AP)  Microsoft Corp.'s pledge to cooperate with last year's landmark European Union ruling against it "doesn't seem to be working at all" and could result in more fines, an EU official said Friday.

After hearing from Microsoft's competitors, the EU's antitrust office found that the system the company had set up to improve the interoperability between its Windows server and other software companies was insufficient.

"Based on the market tests, it doesn't seem to be working at all," said EU spokesman Jonathan Todd.

EU antitrust regulators fined Microsoft a record 497 million euros ($665 million) when they ruled last March that Microsoft abusively wielded its Windows software monopoly and locked competitors out of the market.

It ordered remedies to give rivals better access to Windows technological information, but it now says Microsoft is dragging its feet.

Todd said it was difficult for competitors to have access to the technical information needed to make a judgment whether to buy a license for it.

He also said that Microsoft forced the rivals to buy the full license package and did not allow companies to pick and choose what they needed. And the Commission felt the cost for the license was excessive.

The Commission can inflict additional punishment if necessary and fines against Microsoft could reach as high as 5 percent of daily sales.

Microsoft has always said it was doing its utmost to comply with the EU ruling.

Spokesman Jim Desler confirmed that the company had received feedback from the European Commission about its plans for licensing certain software blueprints. But he would not say what specific changes regulators had asked for.

Desler said Microsoft was "grateful to receive the feedback because it allows us to respond promptly and in an appropriate way."

The EU ruling also forces the company to offer an alternative Windows version for sale without its video and music Media Player application.

Friday's criticism did not access that issue, Todd said.

Forcing Microsoft to shed Media Player from its Windows platform was seen as an attempt to strike at the commercial backbone of the company's global software empire.

The Commission has rejected one name for the stripped-down version of Microsoft Windows operating system, arguing it would be too much of a sales disincentive. It is still considering further testing for names.

Microsoft said the version without Media Player had reached manufacturers, but will not end up in computer shops until the name issue is resolved.

The EU's ruling in March went much further than Microsoft's 2002 settlement of similar charges with the U.S. Justice Department, which required only that users be allowed to hide Media Player and set another as the default.