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Microsoft faces EU fine for abuse of position

Liz Vaughan-Adams
Thursday 07 August 2003 00:00 BST
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The US software giant Microsoft looks set to be fined by the European Commission after Competition Commissioner Mario Monti said yesterday that new evidence indicated that Microsoft has been abusing its dominant position in the music and video software market.

In addition, Microsoft could be forced to change the way it sells its music and video software as well as reveal key technology secrets to competitors in an effort to settle the four-year-long case.

At the heart of the issue is the way Microsoft bundles its media players - which enables users to see and hear video and audio files on their computers - with its Windows operating systems.

"At this stage, we have so much evidence and we are in possession of so substantive a file that we believe any decision we take will withstand scrutiny of the European court," a commission spokesman said.

But the Commission gave the company a last chance to comment after sending Microsoft a final "statement of objections, which includes the identification of appropriate remedies".

That gives Microsoft "the last opportunity to comment before the Commission concludes its case," Mr Monti said, adding: "We are determined to ensure that the final outcome of this case is to the benefit of innovation and consumers alike."

A Microsoft spokesperson said the company was looking over the Commission's findings but described them as "unfortunate" since they would lengthen the proceedings.

Separately, it emerged that Bill Gates, the founder of Microsoft, sold 2 million shares on Monday in a move that would have made him at least $52m (£32.2m).

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