Feb. 15, 2006 was the final deadline for corporate giant Microsoft to submit a report complying with European Commission rulings. Instead, Microsoft has submitted a 75 page complaint against the Commission.
On Mar. 24, 2004, after 5 years of investigation, the European Commission declared that Microsoft had broken European Union competition law and would be fined 479 million Euros ($588 million).
The Commission ruled that Microsoft had acquired a dominant position in the market for work group server operating systems and that Windows Media Player weakened competition in the media market.
In order to comply with the ruling, Microsoft would have to disclose complete interface documentation to its competitors so that their operating systems could effectively communicate with the Windows system.
In addition, Windows Media Player could no longer be included in the Windows operating system bundle.
In a press release following the ruling, former European Competition Commissioner Mario Monti stated: "Today's decision restores the conditions for fair competition in the markets concerned and establishes clear principles for the future conduct of a company with such a strong dominant position."
However, with Microsoft's long anticipated report, it seems only hopeful to think that Microsoft is ready to comply with Monti's conditions. Microsoft's report has attacked the European Commission, claiming that the Commission "...repeatedly refused to clearly define its requirements and concerns, despite repeated requests and accommodations by Microsoft."
In addition, Microsoft, despite not naming these experts, has separate reports from five British and German software engineering professors who state Microsoft's technical documents have in fact complied with the intricate competition legislation set by the European Commission.
Signs of a future showdown between the software colossal and the Commission can be seen in Microsoft's intention of getting the 2004 ruling annulled with an appeal to the European Court of First Instance, the EU's second-highest court, this April.
Joachim Jacobs, a spokesman for The Free Software Foundation Europe is skeptical about the company's plans to adhere. He asserts that the software giant will protect its strategic position by any means necessary.
The European Commission has of course denied any fault in the claims made by Microsoft in reference to "clearly defining its requirements and concerns."
The Commission states that since June 2005 it has repeatedly and clearly reminded Microsoft of the specifications in question. Regardless, Commission spokesman Jonathon Todd has said that the final decision lies in the hands of the Commission and that the necessary steps and proper fines will be instituted.
Interestingly, this is not the first time in European Union history that a showdown has occurred between the European Commission and a major American company.
On October 20, 2000, General Electric wanted to secure a $45 billion merger with Honeywell. This deal would have become the largest merger agreement in the history of American industry had it not been for the European Commission.
Mario Monti, the same Commissioner who declared Microsoft to have monopoly power in 2004, claimed that the merger between General Electric and Honeywell would give the American powerhouse company too much dominant power in the market and hurt competition.
After repeated attempts by the former GE CEO Jack Welch to secure the merger, Monti refused to back down, and the deal fell through, leaving General Electric with millions in costs.
This pattern of Europe standing up to American corporate giants such as General Electric and Microsoft depicts a greater European mentality.
As a combined entity with a common currency, parliament, and justice system, the European Union has increasingly become a global partner to the United States rather than a subordinate cluster of nations across the Atlantic.
Already the world's largest market, the European Union has repeatedly established itself as a "stronger than before" global power. Even though much attention has been recently drawn to China's increase as a global presence, a looming European Union must also be taken seriously.
