COMMISSION MICROSOFT RULING MAY THREATEN INNOVATION.

• Position: Predictions

There has been a flood of criticism from the US in the wake of the European Commission's fine of Microsoft and its demand that the software giant change its business practices. All the way up to government level, Americans are accusing the Commission of threatening innovation. Beyond the record fine of Euro 497 million, the Commission has also imposed certain "remedies" to stop Microsoft from crushing its competitors. The most controversial measure for the Americans is the forced removal of Media Player (software for playing audio and video) from the Windows operating system. Thus, the consumer may choose between a Windows package with or without Media Player. To be obliged to withdraw software so as not to discourage competition is unprecedented, the US says. According to Hewitt Pate, assistant attorney general for anti-trust at the US Department of Justice, this solution was never at any time envisaged during the long process his department took between 1998 and 2002 against the world's number one software giant. Mr Pate says the requirements imposed by Mario Monti could slow down "innovation and competition even by 'dominant' companies," and that "a contrary approach risks protecting competitors, not competition".

"The only winners are multi-billion dollar Microsoft competitors, Real Networks and Sun Microsystems", underlined for its part the Association for Competitive Technology (ACT), which promotes SMEs in the technology sector. "For example, software developers writing distance learning applications can no longer rely on the fact that Media Player functionality will be in...