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Mumbai: Software giant Microsoft Corporation has ended
three years of resistance and agreed to comply with the EU Commission''s 2004 anti-trust
ruling that it was abusing its dominant market position. Two months ago
a European court confirmed the EC''s finding that Microsoft had used its Windows
personal computer operating system to crush rivals in related markets. The
court also backed the imposition of a record 497 million euros ($690 million)
fine on Microsoft. Microsoft said it would not appeal against the court
ruling and agreed to make "substantial changes" to comply with the EC
ruling. As per the ruling, Microsoft will have to reduce royalties payable
for interoperability information on its Windows computer programme to a "nominal"
one-off payment of 10,000 euros ($14,000) for rival firms. The royalties
for a worldwide licence, including patents, will be reduced from the current 5.95
per cent to 0.4 per cent, the EC announced. "The EC has ensured that
Microsoft will now take the necessary steps to comply with its obligations...
regarding work group server operating systems," including making interoperability
information available to rival software companies, the EC said in a statement.
Software developers "will be able to access and use the interoperability
information," competition commissioner Neelie Kroes said. "In
these agreements between third party developers and Microsoft, Microsoft will
guarantee the completeness and accuracy of the information provided," the
statement said, adding that the agreements will be enforceable in the London High
Court, along with the EC''s own enforcement powers. The verdict
is a big blow to Microsoft''s Widows-based business strategy, which made the company
one of the biggest and most profitable enterprises in the world.
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