Judge challenges EU position on Microsoft

05 Oct, 2004

A top European Union judge challenged the EU executive's reasoning in its antitrust court battle with Microsoft Corp on Friday, questioning why it opposed the US software giant's setting industry standards.
Bo Vesterdorf, president of the European Union's Court of First Instance, threw down the challenge during the second day of hearings on Microsoft's request to suspend penalties levied on it while it pursues an appeal that could take years.
At the end of the day Vesterdorf said he would decide soon whether to freeze the penalties.
The EU decision requires Microsoft sell a version of Windows without audio-visual software and forces it to provide information so rival makers of servers can compete more easily.
The Commission found in March that Microsoft abused its operating system monopoly to hurt competitors. Microsoft, which must show "irreparable harm" to overturn that finding, says offering a degraded system would damage its good name.
Vesterdorf said the Commission had acknowledged that if Microsoft's media player were not available on all copies of Windows, then developers would face increased costs should they choose to write for both Windows Media Player and its rivals.
Commission lawyer Per Hellstrom said those increased costs would be balanced by the public interest in competition, which would lead to innovation and consumer choice.
Vesterdorf asked how the Commission would react if all of the major players in the field got together and agreed on industry-wide standards for audio-visual software.
"I have dreamed about that, about an open standard," replied Hellstrom.
"But you oppose an industry standard because it is brought about by the largest company on the market?" asked Vesterdorf.
When Hellstrom said a standard set by a Microsoft would preclude competition, the judge replied:
"Isn't there a fault in your reasoning? Microsoft does not enter into exclusive agreements with (original equipment manufacturers)."

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