Microsoft's chief counsel, briefing reporters in the lead-up to a European Union court hearing this week, said Monday he remains hopeful the software giant's European antitrust case can be settled.
Microsoft has challenged the European Commission's finding that the software giant abused its dominance of PC operating systems. But its top counsel said negotiations remain the preferred course.
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Special report Europe plays hardball with Microsoft  Read our complete coverage of the EU's decision to fine Microsoft $613 million. |
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The company asked the Court of First Instance in Luxembourg to suspend remedies demanded by the EU until the case is completed. These require the software giant to sell a modified version of Windows and offer additional information to rival makers of server computers.
Chief counsel Brad Smith said the company plans to argue Thursday and Friday--and possibly Saturday--that although the company has spent millions of dollars preparing to comply with the orders, it would suffer irreparable damage if it did so.
"We'll be ready to comply with whatever the court orders," Smith said.
On its side, the EU executive will argue that if the remedies are delayed they will become irrelevant and meaningless by the time the case is completed and the market has moved on.
The Commission ordered Microsoft to sell a version of its Windows operating system without the Windows Media Player audiovisual software to computer makers. That way, the computer makers can more easily offer Windows with rival audiovisual applications such as RealNetworks RealPlayer.
Court of First Instance President Bo Vesterdorf asked Microsoft to explain why it could not offer a version of Windows without Media Player, as illustrated by a RealPlayer demonstration at Microsoft's hearing before the Commission, a source familiar with the situation said.
The Commission also ordered Microsoft to make available protocols, or software rules, to rivals so their products are on a level playing field when it comes to communicating with Windows-based desktop computers.
Microsoft said the order would impinge on its limited-time exclusive rights, including its patents, copyright and trademarks.
For example, Smith said the company's software allows a traveling laptop plugged into a system in New York or London to automatically find the closest printer. Rivals should not enjoy the advantage of that kind of development, Smith said.
The court's Vesterdorf asked Microsoft to explain why it should not share its protocols with many companies, since it has already agreed to share them with Sun Microsystems, a source familiar with the situation said.
Vesterdorf will decide on Microsoft's request to suspend, but the case itself will later be heard by a three-judge panel.
The Commission in March fined Microsoft a record 497 million euros ($609.3 million), a small portion of the company's more than $50 billion in reserves.
Smith reiterated the company's view that it wants to negotiate with the Commission.
Competition Commissioner Mario Monti's term is winding down. In fact, this also happens to be the week in which Monti's replacement, Dutch businesswoman Neelie Kroes, faces a confirmation hearing at the European Parliament.
Smith declined to be drawn into any discussion of the relative merits of the two commissioners but reiterated the company's hopes of settling the case and its disappointment the case was not settled under Monti.
"We do tend to believe that technologically complicated issues like this tend to lend themselves best to a negotiated resolution where two people can sit down in a room together and work out all of the details in a very precise way," Smith said.
Story Copyright © 2004 Reuters Limited. All rights reserved.
