Ballmer's Brussels dash in vain for Microsoft
Ballmer's Brussels dash in vain for Microsoft
A last ditch attempt by Microsoft CEO Steve Ballmer to negotiate a settlement with the European Union in order to avoid antitrust action has ended in disappointment for the software giant after talks between the two parties failed to reach agreement on how Microsoft would conduct its business in the future.
Ballmer cancelled a keynote speech he was to give at the Microsoft Management Summit in Las Vegas earlier in the week so he could fly to Brussels in a bid to avoid further litigation for the company.
The collapse of the talks will mean that the EU will make a legal ruling next week, which is likely to demand that Microsoft changes the way it sells its software in the region. The EU has already concluded that Microsoft is in breach of competition rules by bundling its media player with Windows, so it seems likely that it will attempt to force Microsoft to sell a version of Windows in Europe that doesn't have the media software tied in.
Statements emanating from both sides since the talks ended suggest that relations are amicable but that they found it impossible to agree on certain issues.
The EU's competition commissioner, Mario Monti, said in his statement: "I'd just like to inform you that a settlement on the Microsoft case has not been possible. I therefore intend to propose to my colleagues in the Commission next Wednesday to adopt a decision, which has already received the unanimous backing of Member States.
"I would like to stress the constructive and co-operative spirit displayed by Microsoft in the last few weeks. I also want to acknowledge the high degree of professionalism of the members of the Microsoft team at all levels.
"We made substantial progress towards resolving the problems which have arisen in the past but we were unable to agree on commitments for future conduct. In the end, I had do decide what was best for competition and consumers in Europe. I believe they will be better served with a decision that creates a strong precedent. It is essential to have a precedent which will establish clear principles for the future conduct of a company with such a strong dominant position in the market."
Meanwhile, Microsoft CEO Ballmer's statement said the company had not given up on a resolution being made somewhere down the track.
"I believe we reached agreement on the issues of the case, but we were unable to agree on principles for new issues that could arise in the future.
"We worked very hard to try to resolve these issues without litigation. Because of the tremendous value we attach to our relations with governments all across Europe, we made every possible effort to settle the case, and I hope that perhaps we can still settle the case at a later stage."
Brad Smith, senior vive president and general counsel of Microsoft, argued that in future, due consideration must be paid to customers rather than the gripes of competitors.
"I believe our settlement offer would have resolved the issues of the case, not just in Europe but around the world, and right now. Even though we could not agree on a single formula for all future questions, settlement would have helped us work constructively to resolve future issues.
"We have to ensure that the law is not just about competitors' complaints about the impact of new features. There needs to be consideration of the needs of consumers for new innovations. Consumers must be part of the equation. Perhaps the courts will provide the clarity that is necessary to resolve these issues. Today is just another step in what could be a long process."
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