Opera seeks tougher remedy in Microsoft case
Microsoft was considered to have escaped lightly after the European Commission
found it guilty in 2004 of bundling its media player software with Windows to
the detriment of competition. It was ordered to sell a second version of Windows
in Europe without its media player, but the new version was priced the same,
few PC makers stocked it and the product effectively bombed in the market.
People continued to buy the original version of Windows, complete with the
media player, and the remedy did little to help Microsoft's rivals.
With its fresh antitrust suit filed with the Commission this week, browser
maker Opera Software is hoping for a tougher penalty to rein in what it sees
as Microsoft's illegal bundling of its Internet Explorer (IE) browser with Windows.
One legal expert said that this time around, Microsoft might not be so lucky.
"The landscape has changed quite a bit between Microsoft and the European
Commission since the last ruling. If there's a replay of what led up to the
2004 ruling, and Microsoft takes similar positions regarding bundling, then
I wouldn't be surprised if the Commission comes down harder now," said
Chris Norall, a partner in the Brussels office of the law firm Morrison &
Foerster.
Opera argues that because each version of Windows comes with only IE preinstalled,
Microsoft has an unfair advantage against rivals like Opera and Firefox. That
has helped it maintain a consistent market share on Windows PCs of around 80
percent, Opera contends.
The Norwegian company now wants the Commission to come up with a tougher remedy
to overcome Microsoft's advantage. If the Commission agrees that the bundling
of IE is just as illegal as the bundling of Windows Media Player was in 2004,
its remedy this time "will be tougher, it will have teeth," said Norall,
whose law firm is not involved in the Microsoft case.
One possible outcome would be to make Microsoft offer a second version of Windows
without Windows Media Player, and to sell it at a lower price than the "complete"
version of Windows. That may give PC makers more incentive to offer it. Opera's
preferred solution, however, is simply to force Microsoft to pre-load other
browsers with Windows when it ships.
"In our minds, the best solution would be one version of Windows with
a must-carry type of provision," said Jason Hoida, Opera's deputy general
counsel.
Microsoft is likely to fight that remedy fiercely. It says it will cooperate
with the Commission's investigation, but argues, as it has before, that consumers
benefit from bundling its browser with Windows. What's more, it notes, PC makers
and consumers are free to install any other browser if they wish.
Microsoft's position my be
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