Microsoft Edges Closer Toward EC Compliance

Published: November 29, 2006

by Alex Woodie

Microsoft completed a big step toward finally complying with the European Commission's landmark 2004 antitrust ruling Thursday when it announced it met the deadline for the official submission of technical documentation about Windows Server's communication protocols. While the preliminary stamp of approval from European regulators for the receipt of 8,500 pages of documentation was a positive move for the world's largest software company, Microsoft is still a ways from escaping the EC's doghouse.

Earlier this month, the EC set November 23--Thanksgiving--as the deadline for Microsoft to resubmit the entire set of technical documentation, which is supposed to help potential licensees implement the communication protocols needed to write basic file and print applications for Windows client-server applications, and which the EC required as part of its landmark 2004 ruling on Microsoft's monopolistic business practices.

This is the second go-around for Microsoft's technical documentation department. In 2005, the company submitted 12,000 pages of technical documentation, but the EC sent Microsoft back to the drawing board after it found the documentation failed in its goal, was too complex, and, despite its length, was incomplete--findings that Microsoft has consistently denied.

Microsoft resubmitted documentation in July, and over the ensuing four months, representatives of the EC and Microsoft worked to settle their differences. Microsoft says it has dedicated 300 engineers and technical writers to the project, while seven technical experts represented the EC's concerns.

Meanwhile, as it worked with Microsoft to revamp its technical documentation, the EC also fined Microsoft $357 million for dragging its feet on complying with an antitrust ruling that was handed down in March 2004. That fine came on top of the EC's initial $613 million fine against Microsoft.

The next step in the process is for the potential licensees of Microsoft's Windows communication protocols to review the documentation, a process that could take months. The EC's watchdogs are also expected to review the licensing terms and pricing Microsoft will adopt for the distribution of the documentation to third-party software developers.

If the documentation is found to be understandable and complete, and the terms don't leverage Microsoft's monopoly, it will likely appease the EC and herald an end to this ugly chapter in American-European business history. If the EC finds the documentation lacking or the terms or pricing too restrictive, it could impose more fines, send Microsoft back to the drawing board, and drag this thing out for years to come.

From the sound of it, Microsoft is confident the revised 8,500 pages of documentation will appease the EC. "We are pleased that the Commission has recognized our efforts to comply with our documentation obligations, and we will continue to work closely with the Commission and the Trustee to ensure that we are in full compliance with every aspect of the Commission's decision," the company said a statement issued last week.

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