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Commission investigates Microsoft licenses with hardware companies

OUT-LAW News, 03/11/2003

The European Commission confirmed on Thursday that it is seeking details of licensing agreements between Microsoft and some hardware manufacturers as part of its investigation into alleged anti-competitive behaviour by the software giant.

The European Commission has been investigating Microsoft since 1998, when competitors accused the company of failing to disclose hardware specifications necessary to integrate non-Microsoft software into corporate networks.

In August this year the Commission announced a preliminary verdict that "Microsoft's abuses are still ongoing", but gave the company a final opportunity to comment before concluding the antitrust probe. Microsoft will put forward its case at a hearing before the Commission on 12th November.

The latest investigation relates to the "conditions offered by Microsoft for the licensing of their IT related technology to original equipment manufacturers (OEM's) in the IT and consumer electronics sector", said the Commission.

Commentators translate this as being an investigation into whether Microsoft has used its dominant position in the software market to influence actions taken by hardware manufacturers – particularly as regards patents.

Letters have been sent to a number of companies in the market but, stressed the Commission, these "are a routine step and do not signify that the Commission has reached any conclusions as to the assessment of these licensing conditions under the competition rules."

The Commission has not revealed the identities of the 20 or so companies involved, but reports suggest that they include Toshiba, Hitachi and IBM.

 

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