Microsoft was accused of by the European Commission of the European Union for abuse of its dominant position in the market. Inquire into this event which started at about 1993 and still continues to the present day. As a guide, think of the underlying reasons and laws leading to this event, the consequences of breaking these laws and other points that could have influenced it.
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When Novell complained over the Microsoft for anti-licensing practice in 1993 and continued with European Union ordering Microsoft to divulge certain information about its several product and launch a new version of Microsoft windows without media player, form that situation Microsoft was accused by the European Commission of EU for abuse of domain of its dominant position in market and this situation was such a tempering situation for Microsoft.
If we look on cases against Microsoft starting from 1998 to 2009 then we can many argues and points to consider against Microsoft and its strategies. In 1998 Sun Microsystems had complained against Microsoft for the ‘Server Interoperability’. Then in next 2 year, Commission started investigation on Microsoft for integration of media playback capability in Windows. In 2004 Microsoft was commented by Commission that Microsoft had abused a dominant market position. The Commission issued a statement of objection starting that, those documents were not in submission with 2004 decision by 2005 end. Microsoft announced in 2006 that it would be provided all the technical documentation required but Commission fined Microsoft for inadequate technical certification. In 2007 Commission issued a statement for objection starting that pricing of Microsoft for patents reading on its protocol specification is not reasonable and discriminatory. In 2008 Commission announced that two new investigations one was complained from industry association of Microsoft competitor related to interoperability and other was from European browser maker opera relating to inclusion of IE in windows and it was fined by Commission. In 2009 Commission another statements for objection of IE in windows since 1996 was an abuse of Microsoft’s dominant position. Therefore Microsoft was been announced for the proposal of market research and testing then in last it was formal adoption. Then Commission formally accepted the proposal of the Microsoft the market testing then it was fully resolved to Commission’s competition law concern relating to the Internet Explorer in windows and interoperability.
As per the few last decades the relations between the Microsoft and the European Union were not good because of few complain and action on Microsoft my EU, and in this situation Microsoft come to know few new thing from that situation, and as a result Microsoft and European Union has got the compromised under the tight competition rules of the European Union, this was only because Microsoft was just wanted to reduced the fines and competitive behaviour, and finally it was agreed for barter exchange. To spread the spirit of the European Union, Microsoft has decided to shell the product with the collaborative flag of EU and Microsoft in the next Windows 7 logo, it was just great solution decided by the Microsoft as cost-effectiveness, and European Union was also agreed with this deal and to create new and strong relation.
Then for breaking the law of anti-trust or competitive Microsoft was accused by the European commission in two cases. The first case was for the interoperability in relation to a complained by the European committee for interoperable system while in other case was in the field of the tying of separate software products following inter ALIA a complaints from OPERA.
Law of competition was broken by the Microsoft and proper information was not passed in market by the Microsoft and competitor were also reduced and almost all the companies were using Microsoft products in their one, and they are aware about information which is provided to customers. In 2004 Microsoft launched new, it decided to publish paper on Microsoft website and for it EU created new rule that it will had adverse impact on intellectual property rights and the ability of dominants firms to innovate because it effects direct on Europe. And so it Microsoft was fined of near $600 million by European commission and was ordered to share technology with competitors.
Microsoft business model is based on the customer paying money to licensed software that were developed and distributed. Annual report of the Microsoft business shows that customers paying the charges to license the software and distribution. Taking the idea of license based the software model; software developers bear the costs of converting original ideas into software product original ideas into software products through investment in research and development offsetting these costs with the revenue received from the distribution of their products.
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Microsoft failed for maintaining the RELIANCE on mimicking the features and functionality of other same product as Microsoft like Apple, word perfect, Sony play station etc. that was the working of the worlds, Microsoft. Its based on the its progressed of it as an industry rather then being the forced for reinvent the wheel next and next. Microsoft has getting benefits as much as other competitor and even more.
As we all know that Microsoft is the strong and developed company world wide, if has been leading in the good software product over other company, so it has large competitive market, as per the notes the breadth of its product line s biggest differentiator currently but it’s also a potential Achilles’ heel. So Microsoft just wants to bee in its old markets.
As we can see from above discussion that Microsoft break many law of European union and for developing its own business Microsoft has worked tried and launched new ideas in the market but it was not good for other and same business but it was also controlled by the European union, all its competitor works under the law and regulation of the European union than Microsoft should also work as same as competitor. For market development Microsoft and European Union are collaborated for the new product of Microsoft but Microsoft broke the law of anti-competitor, fore that it was fined from European commission it was compatible for any one and also other. So laws of European Union have given many socked to the Microsoft but it is not good as much as because in competitor market anyone can be affected by small or large competitor and keeping in mind excuses of them European union should not react to wards the Microsoft.
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