Interpreting the EU ruling

The European Commission's antitrust ruling against Microsoft doesn't include a provision specifically addressing the issue of the name for the stripped-down Windows version that the ruling requires the company to sell in Europe. As a result, despite agreeing last week to choose a name other than "Windows XP Reduced Media Edition," Microsoft still contends, as a matter of principle, that the name wouldn't have violated the explicit terms of the ruling.

Yet a broader provision of the ruling might have caused problems for the company if it had decided to persist with the "Reduced Media Edition" name. In reports on the subject, European Commission spokesman Jonathan Todd points out that the ruling, in his words, requires Microsoft to "refrain from taking commercial, technological or contractual steps that would make the unbundled version of Windows less attractive to consumers."

As a result, if Microsoft had wanted to continue using the "Reduced Media Edition" name, the situation probably would have come down to an argument over whether the name would have discouraged sales of the alternative Windows version. Although the company says the intent wasn't to discourage sales, many industry analysts disagree, and Microsoft apparently decided it wasn't worth a full-scale spat with the commission.

Meanwhile, there are ongoing reports that the commission isn't yet satisfied with Microsoft's compliance with the ruling, in terms of the stripped-down product's name, its availablility to computer makers, and other issues.

As a footnote, here's the provision of the commission's March ruling that deals broadly with issue of the way the stripped-down Windows version is to be designed and marketed:

Microsoft must refrain from using any technological, commercial, contractual or any other means which would have the equivalent effect of tying [Windows Media Player] to Windows. The unbundled version of Windows must in particular not be less performing than the version of Windows which comes bundled with WMP, regard being had to WMP's functionality which, by definition, will not be part of the unbundled version of Windows. Should it prove that Microsoft demotes the performance of the unbundled version of Windows, thus rendering the remedy ineffective, the Commission retains the possibility to review the present decision and impose an alternative remedy that will put an end to the abuse.

Posted by Todd Bishop at January 31, 2005 11:18 AM