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[Altaire4_2dot0]

OT: Tough Times for Gates and Co.

Ballmer looking looking to settle with the EU. China embracing Linux. Tough times for Microsoft. Glad I don't have this stock in my portfolio.

Technology News

Tuesday, March 16, 2004

Microsoft, EU in Top-Level Talks as Deadline Nears
 
BRUSSELS (Reuters) - Microsoft's chief executive met the
European Union competition czar on Tuesday in a dramatic final
bid to settle a landmark antitrust case, eight days before
Brussels was set to rule against the U.S. software giant.

Disclosing no details after the surprise talks between
Microsoft (MSFT.O) CEO Steve Ballmer and Chief Counsel Brad
Smith and EU Competition Commissioner Mario Monti, both sides
said only that the dialogue would continue.

"Yes, there's been a meeting today. Discussions are
ongoing. That's all I'll say," Monti's spokeswoman Amelia
Torres told reporters.

"Discussions are ongoing," Microsoft spokesman Tom Brookes
echoed.

The negotiations came at the moment of maximum leverage for
Monti, a day after EU governments threw their weight behind a
draft ruling that would find Microsoft broke antitrust law and
require it to change the way it sells audiovisual software.

On Monday, the 15 member countries will endorse a fine
expected to run into hundreds of millions of euros, and on
March 24 the full Commission is due to approve a ruling that
would find Microsoft illegally abused its market dominance to
crush smaller rivals.

If Ballmer and Smith can convince Monti to settle the case,
there would be no legal finding against the company.

TOUGHEST DECISION

Twice before, in 1994 and 1997, the Commission settled
charges against Microsoft without a formal ruling.

The decision may be Monti's toughest in five years as the
EU's top competition regulator.

If he settles, Monti would avoid the certainty of a
Microsoft challenge in European courts which have overturned
several of his department's rulings in the last two years.

But past settlements have not altered Microsoft's business
practices in Europe sufficiently to avoid new charges.

If Monti rejects a deal, he would gain a precedent-setting
ruling which could make future action against Microsoft easier.

But the case could be tied up for years in the
Luxembourg-based courts while the disputed practices continue.

Tuesday's meeting was not announced, but word spread and a
clutch of reporters and camera crews huddled outside the green
steel and glass building housing the Commission's Competition
directorate during the hours-long meeting.

Ballmer and Smith were spirited in and out of the building
in a black panelled van with dark glass windows, painted with
the words "Aalst Wieze" -- a garage in Flanders.

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