Microsoft to appeal $1.35B EU antitrust fine
[Thanks, Hosain]
Posts with tag EuropeanCommission
Not even a week after hearing that Air France was forging ahead with an in-flight calling trial, the European Commission has now voiced its approval of using mobiles on planes in European airspace. After six months of deliberating, the decision was finally made to give airlines the choice of offering up services in order for guests to dial loved ones at 3,000-meters or more. The EU telecoms commissioner, Viviane Reding, went on to warn operators to "keep the cost of calls made on planes at a reasonable level," and of course, not all is clear just yet. For starters, the European Aviation Safety Agency still needs to green-light the whole ordeal by approving any hardware that would be used, and we won't be seeing any 3G action up high just yet. Still, at least one less hurdle stands in the way of you phoning home from over Europe (and simultaneously making enemies out of all your neighbors trying to get a few decent minutes of shuteye).
It may have won approval from the U.S. Federal Trade Commission and NAVTEQ shareholders alike, but it looks like the EU's European Commission needs a bit more time to think over Nokia's acquisition of the company, and it's now launched an "in-depth" probe into the matter. According to Reuters, the Commission said that the "proposed merger raises serious doubts with regards to ... competition concerns," although it was quick to add that the decision to open the inquiry does not prejudge the result of the probe. Among other things, the probe will apparently attempt to asses whether the purchase would affect the cost of maps for other companies providing navigation services on cellphones. If all of this has a familiar ring, it should, because it wasn't all that long ago that the EU launched a similar probe into TomTom's similar acquisition of map-maker Tele Atlas.
It's a good thing Microsoft has tons and tons of money, because they keep finding themselves in a position where they've got to pay out -- big time. Such is the case today, where the European Commission has fined the monolithic company €899 million (or $1.35 billion) due to failure to comply with a 2004 ruling on monopolistic business practices. The Commission found that the folks in Redmond had been guilty of -- gasp! -- freezing out competition by not providing "vital information" to rival software companies. This isn't the first time it's had to pay, as the company already dropped $357 million on the case back in 2006. "Microsoft was the first company in 50 years of EU competition policy that the Commission has had to fine for failure to comply with an antitrust decision," said Competition Commissioner Neelie Kroes. Perhaps Ballmer and co. saw this one coming when they went "open" last week, though we're fairly confident this kind of fine carries only the slightest sting for the software giant.
It may be exceptionally easy to use, but rolling out Apple's iTunes movie rental service to Europe will be no easy task. This according to a piece just published by the The New York Times. Despite known collectively as Europe, the EU's 27 member countries remain a patchwork of convoluted regulatory fragments related to digital media. For example, in The Netherlands, it remains uniquely and ambiguously legal to download, but not upload, copyrighted material. Release schedules also vary widely across Europe -- sometimes releasing the same day as in the US or months later. Notably for Apple, a distributor of content must secure individual licenses to films in every country they wish to do business. No easy task given Apple's rental agreements cover all the major and many smaller studios. This lack of coherence makes a pan-European iTunes rental agreement daunting, to say the least. Fortunately, commissioner Vivian Reding of the European Commission, plans to make a proposal mid-year that would streamline digital commerce efforts across European borders. Remember, Viv is the force responsible for stomping out the EU's ridiculous roaming rates. In other words, we can expect more than just lip-service in the months ahead. Unfortunately, given Apple's history of trouble with the EU over pan-European iTunes pricing and DRM, you can bet they'll tread the EU waters carefully (read: slowly) as they attempt to go live.
The European Commission has just opened an investigation into TomTom's proposed purchase of Tele Atlas, claiming that consumers could be hurt by a GPS hardware maker owning one of the two major digital map providers. Specifically, the so-called "in-depth inquiry," which will be concluded no later than April 17th of next year, stems from "serious doubts that the acquisition by TomTom of Tele Atlas might...lead to a significant impediment of effective competition within the EEA." With Nokia going after NAVTEQ and Garmin having given up on Tele Atlas, this investigation clearly makes sense from the free market standpoint, as the Dutch firm is not likely to slip past without at least committing to fair map licensing terms for other PND manufacturers. In response to the Commission's announcement, TomTom decided to extend its offer for shares of Tele Atlas until March 31st, 2008, with the option to issue another extension if certain conditions are not met.
Qualcomm finding itself in more legal trouble? Say it ain't so! Sure enough, the chip maker is now facing even more heat as the European Commission "has launched formal antitrust proceedings" against it after "mobile phone manufacturers complained it charged far too much for vital technology licenses." The move had reportedly been expected for some time, and while the Commission noted that this would be considered "a matter of priority," no deadline was immediately set for a resolution. Apparently, Qualcomm feels that mobile phone makers were trying to "stifle the competition that it brought to the market," and while the probe could eventually be scrapped, the other outcomes are likely to involve Qualcomm coughing up some dough unless it proves that the allegations were without merit.
Well they've been sniffing around the chip giant for quite some time now, but the European Commission has finally issued "formal charges against Intel for allegedly using illegal tactics against smaller rival Advanced Micro Devices," and according to a spokesperson for the EC, "the statement of objections has been sent." Supposedly, the EU's top antitrust regulator "has spent years investigating Intel's tactics to determine whether it acted unfairly to preserve its dominance over AMD," and now the time has finally come for the hammer to drop. Sadly, further details about the grievances have yet to be divulged, but we doubt Intel, who declined to comment on the situation, will be brushing this off its shoulders anytime soon.
European regulators have begun an inquiry into possible antitrust and anticompetitive practices by the Blu-ray Disc Association as it relates to agreements and restrictions on producing content for Blu-ray and its competing high-definition format, HD DVD. At the urging of some in the HD DVD camp, the European Commission has sent letters to many of the Hollywood studios asking them to produce any correspondence relating to their backing of the Blu-ray format. Of the major studios, Sony, Disney, Fox, Lions Gate, and MGM only release titles on Blu-ray, while only Universal is exclusive to HD DVD. Analysts say much is riding on the outcome of which format wins, with sales of content and players as a big incentive for either side. Is this inquiry just a case of sour grapes by HD DVD that sees itself as in trouble while Blu-ray has better agreements with studios? Or is the BDA not playing fair by using those vertical relationships to form a de facto monopoly? Those in the EU aim to find out.







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