Microsoft backs down in EU debate

Microsoft has backed down over its request for a hearing in front of the European Commission (EC) to discuss the ongoing case against the software giant.

John Frank, legal counsel for Microsoft in Paris, said the company had withdrawn a request for a hearing but offered no explanation why.

However, the move could speed up the process towards a possible settlement by allowing talks to begin earlier. It also avoids the possibility of a heated and potentially confrontational discussion between the two sides.

The EC issued its statement of objectives on 30 August outlining the facts that led it to open an investigation into anticompetitive behaviour by Microsoft.

The company was given two months to submit a written reply and hold a hearing to present its case. It is this hearing that the software company has decided to forego.

In the statement, the EC accused Microsoft of violating article 82 of the EC Treaty by using illegal practices to abuse its dominant position in the low-end server and PC market.

This included allegations of withholding technical information that rivals need to ensure server software is interoperable with desktop machines.

Microsoft is also accused of illegally bundling its Media Player software into the Windows operating system to freeze out competition from rivals such as Real Networks.