EU 'happy' over Redmond rehab

By Steve Malone

Posted on 7 Jun 2005 at 10:21

Microsoft and the EU are edging towards an agreement over Windows interoperability with competitors' server software. Microsoft CEO, Steve Ballmer says the company has made 'significant concessions' towards meeting its obligations under the ruling in March 2004 which found that Microsoft had unfairly locked rivals from properly operating with the Windows desktop operating system.

For its part, the European Commission is to take Microsoft's concessions and will 'market test' them with the industry to get feedback before final agreement.

'I am happy that Microsoft has recognised certain principles which must underlie its implementation of the Commission's Decision,' remarked Europe's Competition Commissioner Neelie Kroes.

Under the new Microsoft proposals submitted last week, the company concedes that rivals who develop new products based on the disclosed information would be able to market them on a worldwide basis. Microsoft has also agreed to provide different classes of information that competitors can choose to receive - including a category that will be royalty free.

However, it appears that Microsoft is still balking at the idea that the interoperability information can be used to create software distributed under an open-source licence. However, Kroes says the Commission is 'committed' to ensuring that open-source developers have access to data that they can use in their products. 'I remain determined to ensure that all elements of the Decision are properly implemented,' she said. 'This includes the ability for developers of open-source software to take advantage of the remedy'.

So far, Microsoft says it will allow developers to distribute software code that implements its technology alongside open-source code. However, the Microsoft components will subject to a separate license agreement.

'We worked to be creative in enabling developers to work with our technology together with open-source software, yet still protect our intellectual property. Our proposal addresses this objective,' said Microsoft's General Counsel Brad Smith. 'While we have not reached agreement with the Commission on whether open-source developers can go even farther and publish the source code that implements our technology, we are comfortable turning to the courts for guidance on this issue.'

Finally, the two parties have agreed that there should be a trustee appointed by the Commission who will assess the level of the royalties set by Microsoft. The company also has agreed that the levels royalties should be 'commercially practicable' to third-party developers and 'should not reflect market power stemming from the widespread use of Windows.'