Microsoft responded on Friday to a statement of objections sent
by the European Commission to the software giant in proceedings
over alleged abuse by Microsoft of its dominant position in the
market for PC operating systems software by leveraging this power
into the market for server software. The question at issue is
whether Microsoft has the right to discriminate against competitors
with whom it does not wish to share information.
Brad Smith, a Microsoft regulatory lawyer, is reported by
WSJ.com as saying that an order amounting to forced licensing,
“would dramatically reduce the incentive to innovate and reduce
competition over the medium to long term.”
The Commission's proceedings follow complaints by Sun
Microsystems and other rivals that claim Microsoft’s dominance in
the operating system market obliges it to share information with
competitors without discrimination. Sun claims that Microsoft has
applied a policy of discriminatory licensing by distinguishing
between its competitors according to a so-called "friend-enemy"
scheme.
Sun argues that the EU’s 1991 Software Directive does not go far
enough. The Directive provides that, under certain circumstances,
software engineers can effectively reverse engineer the software of
others to see how it works to achieve compatibility.
