Microsoft's Troubles with the EU Commission

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On July 31, 2006, the Commission said that Microsoft had submitted the technical documents. Michael Mann, spokesman for the Commission, said, "We have received technical documents from Microsoft. Our people are looking at it, including the trustee, and it's too early at this stage to give any indication of whether there will be another payment, another penalty, and if there is to be another penalty, how much it would be."8

In addition to the antitrust ruling, Microsoft had a few other problems with the European Commission. In March 2006, Kroes had sent a letter to Microsoft highlighting a few concerns about Windows Vista, its next generation operating system, due to be launched in 2007. Some of the issues highlighted were with regard to the integrated online search feature and documents software.

Microsoft planned to integrate its Internet search service, MSN Search as the default search engine in its new browser IE7, which was scheduled to be released in the later part of 2006. In May 2006, Google Inc9. (Google) filed a complaint with the EU Competition Commission when Microsoft released a Beta 2 version of IE7, which had MSN Search as the default search engine. Google described the move as monopolistic and anti-competitive, due to Microsoft's dominance in the operating systems market. The move was seen as a severe threat to Google as it could hamper its online search advertising business in a market worth over US$ 10 billion (in 2005).

There were also concerns regarding Microsoft's XML Paper Specification (XPS), the company's document creation and viewing feature that was planned to be included in the Windows Vista operating system. Many considered the XPS a threat to the portable document feature (PDF) of Adobe Systems Inc. (Adobe). Adobe had already threatened to file an antitrust complaint with the European Commission against Microsoft, if it included the "save as PDF" feature in Office 2007 and XPS in Windows Vista. In response to this, Microsoft agreed to remove the "save as PDF" feature from the beta versions of Microsoft Office 2007 and planned to offer this feature to users as a free download. However, Microsoft had not agreed to remove XPS from Windows Vista and "save as XPS" feature in Office 2007.

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[8] David Lawsky, "Microsoft submits documents in bid to avoid fine," http://today.reuters.co.uk, July 31, 2006.

[9] Google, Inc. was co-founded by Sergey Brin and Larry Page in 1998. Google is the world's most popular Internet search engine and has a diversified range of products such as E-mail, blogs, etc.

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