Unit 4 – Project Teresa Heier Kaplan University MT 460-02 Professor Lisa Epstein September 28, 2009 Executive Summary The main problem that Microsoft is having in Europe is with the antitrust ruling. As stated in the case “The immediate issue before the court is whether to uphold the European Commission’s landmark 2004 antitrust decision against Microsoft or to side with Microsoft in its appeal. ” (Pearce-Robinson, 8-1) The two main issues that the case is about is Microsoft tying their media player in with the operating system and not willing to release their full specifications of their networking protocol.
The EU Courts impose a remedy for Microsoft to release a copy of their operating system XP that did not include a media player. “The remedies have been… less than successful. Windows XP N (with no media player) never exactly flew off the shelves, and the networking protocol documentation still remains incomplete more than three years later (though it did reach a usable state late last year). ” (Anderson, 2007) Background The whole issue between Microsoft and the Europe Court of First Instance first started in early 2004.
The EU Courts did in fact determine that Microsoft has abused their position in the European market of technology. The Courts then imposed a $688 million fine against Microsoft for their violations. (Anderson, 2007) Microsoft did file an appeal but the European Commission did uphold the large fine imposed on the company. Strategic Analysis Microsoft states their mission and value from their website as As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect.
We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality. (Microsoft. com, 2009) From what the company states in their mission and values they value openness. Microsoft is not following their mission and values statement because they did not publish their network protocol documentation by the requested date from the EU Courts.
They did release a version of their operating system XP N but that never really sold or took off in the markets. All in all Microsoft has been “convicted” of a monopoly. Alternatives Microsoft really needs to wake up before they get smacked in the face with more fines from the EU Courts. Some alternatives that Microsoft might be able to use would be only releasing an XP N operating system in the questioned markets. They also need to act more quickly to requests of the EU Courts.
The Courts are not going to wait years upon years for their requests and documentation to be finished and submitted to them. Recommendations I would suggest they release only an XP N operating system in the EU markets. They also need to start listening to the Courts and working on matters in a more timely fashion. I would also recommend that Microsoft back off the EU market for a few years and lay low for a few years. If Microsoft does not comply with what the Courts want them to do ultimately the company will go out of business, maybe not in the next 10 or 20 years but in the long run.
References Pearce, J. A. & Robinson Jr. R. B. (2007). Strategic Management. 11th ed. New York, NY: McGraw-Hill Irwin Anderson, Nate. (2007). EU court comes down hard on Microsoft in antitrust appeal. Retrieved on September 29, 2009 from” http://arstechnica. com/tech-policy/news/2007/09/microsoft-loses-appeal-in-europe. ars Microsoft (2009). Microsoft-About Microsoft Home. Retrieved from http://www. microsoft. com/about/default. mspx#values