Over European protocol pricing

Mar 23, 2007 07:56 GMT  ·  By

The Microsoft monopoly saga on the European Union's stage has once again gained focus thanks to the EU top watchdog Neelie Kroes. The European competition commissioner Neelie Kroes has lashed out at the business practices of the Redmond Company labeling them as "unacceptable." In an address to European parliamentarians on Thursday, Kroes criticized Microsoft's policy accusing the company of continuing to implement the strategy that brought against it the European Commission's 2004 antitrust ruling, in order to increase its market share.

The new line of fire directed at Microsoft, follows initial comments from Kroes about the legitimacy of the royalties the Redmond Company proposed for its protocol technology licensing program in Europe. Kroes argued that Microsoft is failing to share Windows interoperability information at a reasonable price.

"Microsoft is constantly gaining market share and that is what is worrying in the workgroup server operating market," Kroes stated. In the view of the European Commission, Microsoft is stopping rival developers of workgroup servers to deliver Windows interoperability for their products.

Microsoft's unfair practices are reflected in the way the Redmond Company has been establishing a dominance on the server operating system market. In this area, Microsoft has increased its market share from 35% in 1999 to approximately 75% in 2007.

As Windows based machines integrate seamlessly with Microsoft's workgroup servers, rival products are left out to the point where the Redmond juggernaut now accounts for the lion's share of the market. Microsoft has responded in the past to the EU's claims related to its protocol pricing and disputed claims that the royalties charged are not comparable to the technology delivered. Kroes has not threatened any new financial penalties against Microsoft at this time, while in the past she has not hesitated to do so.