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IT-Director: EC to Microsoft: We just don't trust you

Jul 10, 2000, 14:44 (11 Talkback[s])
(Other stories by Cheshire Cat)

"Just two days after denying the Wall Street Journal news report claiming that the European Commission would block Microsoft's investment in a UK cable company, both parties confirmed on Friday that this was indeed the case. According to The Nando Times Microsoft no longer plans to up its stake in Telewest Communications plc, a deal which would have seen the giant investing $3bn to gain control of the company."

"In blocking the deal the EC has effectively prevented a US firm from making a $3bn investment in Europe. This is an indication of the kind of muscle that the EC now holds -- without the details of the case we can only hope that the decision was made wisely, and quite clearly it is not something that can happen too often before it starts to damage the economies of the member states. Equally clearly, the EC is so fearful of the monopolistic might of Microsoft that it is prepared to step in and act."

"The failure of the Telewest deal is indicative that the EC has teeth, and that Microsoft's corporate future can be compared to walking on eggshells. Bill Gates has already expressed his worry that the DOJ ruling will limit his company's ability to innovate. Even before the antitrust case reaches a conclusion, it looks like the chickens are coming home to roost."

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