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Compliance Toolkit

EC: We had to fine Microsoft

Dawn Kawamoto CNET News.com

Published: 14 Jul 2006 16:10 BST

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…on the potential competition implications of Vista. We are still in contact with Microsoft concerning Vista and of course expect Microsoft to ensure that Vista will be fully compliant with the EU's competition rules.

Microsoft Chairman Bill Gates recently announced that he's stepping down from any daily involvement with the company in the coming two years. What impact, if any, do you think this will have on the Commission's relationship with Microsoft?
The Commission enforces the EU competition rules in light of the applicable treaty provisions and court jurisprudence, and on the basis of the specific factual circumstances of each individual case. Personal working relationships do not, therefore, in themselves influence how we enforce competition policy. Having said that, it has always been the case that our working relationship with Microsoft has been characterised by courtesy and professionalism at all levels.

More specifically, did the Commission ever suggest to Microsoft that the relationship between the software giant and the Commission could improve if Gates were less involved with the company, prior to his announcement of relinquishing his chief software architect role?
Absolutely not. As I have outlined, such issues do not influence the way the Commission enforces competition policy. In any case, I should point out that my contacts have been with (Microsoft chief executive Steve) Ballmer.

Microsoft, meanwhile, is appealing your 2004 order. What happens to the fines it already paid if the Court of First Instance rules in its favour?
Microsoft has paid the money into a "blocked account". Should the Court of First Instance rule in Microsoft's favour, that money will be repaid to Microsoft, with interest.

Would competition be improved if the US District Court's original ruling — that Microsoft be broken up — had been carried out? I can only comment on the Commission's decision, where remedies were imposed to restore effective competition in the concerned markets on the basis of the specific factual and legal circumstances before us. It would not be appropriate for me to comment on competition decisions taken by the US authorities.

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  1. Thank you, Mrs. Kroes. Arthur B.

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