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COMP ET I T I ON LAW
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Commission Accepts Microsoft Implementation of its
Undertakings
*
The European Commission has accepted the implementation by
Microsoft of its undertakings to provide European consumers with the
opportunity to choose from a variety of browsers to access the Internet.
Commission’s Investigation and Statement of Objections
The European Commission, on 21 December 2007, decided to initiate
antitrust proceedings
1
against Microsoft under case COMP/C-3/39530
(Microsoft - Tying)
2
. The EuropeanCommission sentMicrosoft a Statement
of Objections (hereinafter referred to as the “SO”)
3
on 15
th
January 2009.
In the SO
4
, the Commission underlines its preliminary conclusion that
Microsoft’s practice of tying
5
Internet Explorer to the Windows operating
system restricts the competition between competing web browsers, reduces
consumer choice, and infringes the EC Treaty rules on abuse of a dominant
position under Article 82 of the Treaty
6
.
Microsoft’s Reply to the SO and Commission’s Examination
Microsoft replied to the SO
7
on 28 April 2009 and declared proposals
*
Article of March 2010
1 Please be informed that the initiation of proceedings does not imply that the Commission has
proof of an infringement. It only signifies that the Commission will further investigate the case
as a matter of priority.
2 The proceedings concern alleged infringements of Article 82 EC by Microsoft Corp. through
the tying of a range of products to sales of Microsoft’s dominant operating system.
3 A Statement of Objections is a formal step in Commission antitrust investigations in which the
Commission informs the parties concerned in writing of the objections raised against them.
The addressee of a Statement of Objections can reply in writing to the Statement of Objections,
setting out all facts known to it which are relevant to its defense against the objections raised
by the Commission.
4 The SO is based on the principles stated in the judgment of the Court of First Instance of 17
September 2007 (case T-201/04), in which the Court of First Instance supported Commission’s
decision of 2004 declaring that Microsoft abused its dominant position (in PC operating sys-
tem market) by tying Windows Media Player to Windows PC operating system.
5 Internet Explorer is available on 90% of the world’s PCs. This fact distorts competition be-
tween competing web browsers and also provides Internet Explorer with an artificial distribu-
tion advantage that other web browsers may never reach.
6 All references to Art 82 EC should be understood as references to the current article 102 of the
Treaty on the Functioning of the European Union (as renamed by the Treaty of Lisbon, which
entered into force on 1 December 2009).
7 In its reply to the SO, Microsoft requested an Oral Hearing which was subsequently arranged
for 3, 4 and 5 June 2009. However, it later declined to be heard on these dates and applied on
15 May 2009 to postpone the Oral Hearing.