Kroes says U.S. criticism of Microsoft ruling is unacceptable

Kroes says U.S. criticism of Microsoft ruling is unacceptable

European Commissioner for Competition Neelie Kroes gestures while speaking during a media conference regarding Microsoft at EU headquarters in Brussels, Monday Sept. 17, 2007.

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Story Published: Sep 19, 2007 at 8:46 AM PDT

Story Updated: Sep 19, 2007 at 8:46 AM PDT

By Associated Press

BRUSSELS, Belgium (AP) - A U.S. official's criticism of a European Union court ruling dismissing Microsoft's monopoly abuse appeal was "totally unacceptable," EU antitrust chief Neelie Kroes said Wednesday.

Kroes said it was wrong for a representative of the U.S. administration to criticize "an independent court of law outside its jurisdiction."

"The European Commission does not pass judgment on rulings by U.S. courts and we expect the same degree of respect from U.S. authorities on rulings by EU courts," she said. "It is absolutely not done."

Thomas O. Barnett, the U.S. Department of Justice assistant attorney general for antitrust, said late Monday that the U.S. had a particular interest in the EU's Court of First Instance decision and was concerned that the legal standard it set had "the unfortunate consequence of harming consumers by chilling innovation and discouraging competition."

The Justice Department, which reached an antitrust settlement with Microsoft Corp. in 2002, had no immediate comment on Kroes's statement.

Kroes said if Microsoft wanted to contest the ruling, it could appeal to the EU's highest court, the European Court of Justice. It has two months to lodge a challenge.

She stressed earlier in the week that EU regulators should consult regularly with U.S. authorities on antitrust cases - despite their sometimes different approaches - saying she would discuss the case with them when she visits the U.S. later this month.

The court ruling on Monday affirmed the EU's nine-year pursuit of Microsoft, rejecting the software maker's appeal and strengthening the bloc's hand as it pushes ahead with cases against other major technology companies.

It said the European Commission was correct in concluding that Microsoft used its dominance in desktop computers to muscle into server software and media players in the 1990s and upheld a record 497 million euro ($613 million) fine imposed on the company in 2004 - the largest ever levied by EU regulators.

The EU started investigating Microsoft in the late 1990s with complaints from Microsoft's U.S.-based rivals - including Sun Microsystems Inc. and RealNetworks Inc. - about how the software giant used its presence on most desktop computers to elbow into new markets and block competitors. Microsoft Windows operating system runs as much as 95 percent of the world's PCs.

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