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Technology Stocks : Microsoft Corp. - Moderated (MSFT)
MSFT 491.95+0.2%3:59 PM EST

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From: John F. Dowd9/7/2006 4:31:00 PM
  Read Replies (4) of 19790
 
Neo Communism alive and thriving in EU!

REUTERS UPDATE 1-Microsoft hints at delay of Vista in Europe [GJLPQHM]

(Adds quote from European Commission paragraph 2)

By David Lawsky

BRUSSELS, Sept 7 (Reuters) - Microsoft <MSFT.O> raised the
possibility on Thursday that it might delay the introduction of its new Vista Windows operating system in Europe, saying it depended on the European Commission's antitrust requirements.

The European Commission responded sharply, saying it was
"misleading to imply that the Commission could be the cause of delays in launching Vista in Europe".

Microsoft said in a statement it made concrete proposals to
the European Union's executive Commission, responding to its
concerns about new features in Vista.

"Once we receive the Commission's response, we will know
whether the Commission is seeking additional product design
changes that would result in delay in Europe," it said.

The Commission, the executive arm of the European Union, had
a different perspective.

"It is not up to the Commission to give Microsoft a green
light before Vista is put on the market; it is up to Microsoft
to accept and implement its responsibilities as a
near-monopolist to ensure full compliance with EU competition
rules," a spokesman said.

"Microsoft only responded to our latest concerns last week,"
he said.

The Commission and Microsoft are locked in a legal battle
dating back to 2004 when Brussels hit the company with a 500
million-euro ($640 million) antitrust fine and required changes
in its business practices.

STILL TALKING

When Microsoft failed to meet Commission requirements, the
EU executive fined the company another 281 million euros this
summer. It is still waiting for compliance.

The Commission is also talking to Microsoft about whether
Vista has anti-competitive elements that must be changed.

Vista, set to replace Windows XP, has run into many delays.
Microsoft this week confirmed its plan to make Vista available to large-volume business customers in November and for a general launch of the product in January.

European parliament members Chris Heaton-Harris, Sharon
Bowles, Peter Skinner and Michal Kaminski wrote to the EU
competition chief on Thursday, saying the Commission was
endangering the ability of European business to compete.

"It is alarming that one of the world's most successful
technology companies considers the European Commission's
attitude a risk factor," they said in the letter.

The possibility of a Vista delay in Europe recalls similar
comments made by Microsoft founder Bill Gates and other senior executives in May 1998, shortly before the release of the Windows 98 operating system.

At the time, the U.S. Justice Department was working on a
major lawsuit against Microsoft, which it ultimately won.

Then-chief financial officer Greg Maffel said any lawsuit
aimed at Windows 98 could have "broad, negative consequences"
for the entire personal computer industry.

Around the same time, top executives of Microsoft partners
sent a letter asking the federal government not to block Windows 98's release.

The picture was muddied by news reports that the company had
planned to plant public opinion pieces to create the appearance
of a groundswell of support.
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