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EC: More Microsoft fines could be on the way
Microsoft 'charging too much' for protocols...

By Tom Espiner

Published: Thursday 01 March 2007

The European Commission has warned Microsoft that it could impose further penalties in its ongoing antitrust case against the software giant.

The EC claimed on Thursday that Microsoft wants to charge too much for interoperability protocol licences that enable third-party software vendors to develop software compatible with Windows servers.

In a damning statemement, the EC claimed that the protocols 'lack significant innovation', even though Microsoft has been awarded patents on much of the technology in question.

"Microsoft has agreed that the main basis for pricing should be whether its protocols are innovative," said EU competition commissioner Neelie Kroes. "The Commission's current view is that there is no significant innovation in these protocols. I am therefore again obliged to take formal measures to ensure that Microsoft complies with its obligations."

Microsoft rejected the EC statements, claiming that it had been fair in setting the protocol prices, and an analysis had found the proposed prices "were at least 30 percent below the market rate for comparable technology".

This dispute dates back to the landmark EC antitrust ruling against Microsoft in 2004. Under this, Microsoft was ordered to hand over server interoperability specifications for work group server operating systems so that rival software makers could ensure full compatibility with Windows.

Microsoft submitted the specifications in a 1,500 page document in July 2006. After six months of examination the EC has concluded that they lack innovation, and that as such Microsoft's proposed pricing is excessive.

Tom Espiner writes for ZDNet UK.