The Redmond Company wants to avoid a shareholder vote on the issue

Jul 26, 2006 07:21 GMT  ·  By

After Google, it's now Microsoft's turn to face the network neutrality issue. But unlike the Mountain View Company, that has made a clear stand on the matter, threatening legal antitrust action if the ISPs would tamper with net neutrality, Microsoft's position is open to all speculations. Moreover, the Redmond Company is reportedly working to convince its shareholders of the futility associated with an official stand while attempting to block an initiative that would lead to a network neutrality rationale. In this context, the Free Enterprise Action Fund, owning an estimated $5.5 million in assets and more than 4,000 Microsoft stock, has requested a shareholder vote that would consequently determine Microsoft to issue an explanation detailing its support for net neutrality. Moreover the fund actually seeks to force Microsoft to back network neutrality.

Network neutrality is a controversial issue related to the absence of Internet restrictions. In particular it refers to a non-prioritized Web traffic service system, unaffected by financial limitations. Companies as that generate massive volume of traffic would be charged extra fees for their content from high-speed Internet Service Providers if the network neutrality would be set aside.

The Redmond Company has consulted the Securities and Exchange Commission on its intentions to exclude the net neutrality proposal from a shareholder vote, arguing that it was an issue of ordinary business and had no place in a shareholder meeting vote.