Microsoft Makes Open Source Concession in EU Case

by Alex Woodie

Microsoft has agreed to make it easier for competitors around the world to gain access to detailed technical information about the Windows server operating system as part of its plan to comply with the European Union's March 2004 ruling against the company and its abuse of monopoly power. Microsoft's proposal, which the EU Commission is now checking for compliance, would make Windows compatible with more open source software, but disagreements over licensing and distribution rights remain.

Microsoft submitted its compliance proposal to the EU Commission on June 1, narrowly making the midnight deadline set by the EU. The company is still not entirely out of the woods, as the EU will take two weeks to check Microsoft's proposals for compliance, with a final announcement on compliance expected by the end of July.

However, early indications from EU regulators show that the EU is pleased with Microsoft's proposal. "I am happy that Microsoft has recognized certain principles," said European competition commissioner Neelie Kroes. "I remain determined to ensure that all elements of the decision are properly implemented. This includes the ability for developers of open source software to take advantage of the remedy." The EU could fine Microsoft up to $5 million per day if it finds the proposals do not go far enough.

The central issue at hand is how competitors can access Microsoft's Workgroup Server Protocol Program (WSPP) protocols, and how much they would cost, if anything. Previously, Microsoft charged for access to the vast majority (if not all) of the WSPP protocols, of which there are 40 different categories. That is changing.

Microsoft says it has made more than two dozen changes to its WSPP rules, including revising and reducing the pricing structure of the WSPP protocols, and making some protocols available on a royalty-free basis. It will also allow developers to sign licenses with Microsoft that "mix and match" among those 40 categories of WSPP protocols, and will create two paths for software companies to use WSPP protocols in software that's distributed in open source form.

The software giant has also lengthened the time that other developers can review Microsoft's trade secret technology, and will allow organizations to review its technology at their own site for up to 30 days. And instead of making changes to its licensing programs that apply only to Europe, Microsoft will be implementing them on a world-wide basis.

"We've made some tough concessions" to resolve complex issues, says Steve Ballmer, Microsoft's CEO. "We take our responsibilities in Europe very seriously."

However, some disagreements remain. Microsoft was not ready to give its competitors the ability to distribute the source code for Microsoft's proprietary technology as part of an open source product. Brad Smith, Microsoft's general counsel, had this to say: "While we have not reached agreement with the Commission on whether open source developers can go even farther and publish the source code that implements our technology, we are comfortable turning to the courts for guidance on this issue."