Monday 17 September 2007

Dominate but Don't Abuse!

The European court upheld the ruling by EU regulators against media giant Microsoft. The ruling has more than 100 pages, but it conveys a very simple but straight message: you can dominate but can't abuse it.

There is nothing wrong with dominance, and what competition law or anti-trust law goes against is the abuse of market power. The European court found that Microsoft not only dominate but also abuse their power by those "tying" tactics or refusal to share its system with competitors. That is also why EU only focused on the anti-competitive business behavior of Microsoft, but not consider the software giant's dominance on its Office applications.

The case also evidenced the power of Europe in setting global rules of game. American business, powerful as they are, have been so committed to or reliant on European market that they have to abide by the European regulations. Microsoft even thanked European courts for the hard work put into the ruling process! You got a slap in both sides of your face, but still force your smile .....

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