“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.”