Last month, a group representing Microsoft rivals IBM Corp., Oracle Corp., and Sun Microsystems, Inc. filed a complaint with the EU's Competition Commission; among its claims was that Microsoft didn't allow other vendors to create Office-like products that interoperated with the Redmond, Wash.-based developer's Windows operating system.
Microsoft already faces a 2 million euro ($2.4 million) per day fine for what the EU charges is non-compliance with its 2004 antitrust ruling. Most recently, Microsoft counter-charged that the EU was in cahoots with its competitors, and wasn't getting a fair shake. A hearing is planned for later this month where Microsoft will present its rebuttal to the out-of-compliance allegations.
Microsoft Office, which has a virtual lock on the business application market, is one of the company's cash cows. In its most recent earnings statement, Microsoft noted that the Information Worker group, whose main product is Office, accounted for $2.1 billion in profits in the quarter, about 45 percent of all profits. (Windows accounted for nearly all the rest.)
The fact is, said Matt Rosoff, an analyst with Kirkland, Wash.-based Directions on Microsoft, antitrust litigation has become the norm for Microsoft. "Antitrust is simply a condition of doing business for Microsoft," he said.
"Even if they don't violate the letter of the law, if competitors think that it's doing something similar to what's been decided earlier, it could lead to another lawsuit," Rosoff added.
"Microsoft accounts for antitrust litigation in its planning. That's the way it's going to be as long as it has a dominant position in markets like operating systems and suites," said Rosoff.
"Lawyers [there] are going to be busy."
Achieving Successful Coexistence Between Notes and Microsoft Platforms
Learn about the key migration and coexistence challenges youżll face when considering migration from IBM Lotus Notes to Microsoft Exchange and Microsoft SharePoint Server. Get best practices for planning and executing a successful coexistence strategy, and discover how you can ensure seamless coexistence between the Lotus and Microsoft environments.
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