Microsoft moves to block vote on Net neutrality stance

By Simon Aughton

Posted on 26 Jul 2006 at 15:06

Microsoft is trying to block an effort by a shareholder to force it to explain its reasons for backing Net neutrality.

According to Reuters, Microsoft has asked the US financial regulators for permission to ignore the shareholder's call for a vote on the issue.

The shareholder, The Free Enterprise Action Fund, believes Microsoft should elaborate on its support for Net neutrality which it claims represents 'expanded government regulation of the Internet'.

Microsoft, in common with other major content providers, is concerned that if Net neutrality is not enforced, then Internet service providers will be free to choose which traffic has highest priority across their networks.

But Tom Borelli, a portfolio manager at the fund, which has more than 4,000 Microsoft shares, said the company has more important things to focus on.

'We feel they should be worried about innovation and competition rather than perhaps running to the government for regulation,' he said, and queried what Microsoft has to fear from the publication of a full report into its decision.

'What are they afraid of?,' he asked.

Microsoft told the US Securities and Exchange Commission that support for Net neutrality was part of its normal business operations and therefore not subject to shareholder approval.