VVD Europarty on-line

WRITTEN QUESTION E-2052/02
by Elly Plooij-van Gorsel (ELDR) to the Commission

(28 June 2002)

Subject: Microsoft's new licensing arrangements

At the end of July the transitional period of a few months set by Microsoft for the introduction of a new licensing programme comes to an end. That means that upgrades for applications and workstation access licences are due to expire as of 1 August 2002. For many users, the changes to the programme will mean that the costs for use of new versions of Microsoft software will roughly double.

There are no reasonable grounds for the big price increases. The changes are not linked to higher costs for the development or distribution of software. The number of improvements made between two consecutive versions, and the nature of those improvements, is becoming less and less significant, whilst the price of upgrades is increasing. Irrespective of the changes to the licensing programme, the actual prices for Microsoft products have continued to increase at an excessive rate in relation to other price movements (i.e. above the rate of inflation).

1. Is the Commission informed about the introduction by Microsoft of a new licensing programme?

2. Does the Commission take the view that the introduction of the new licensing programme and the price increases associated with it constitute a form of abuse of a dominant economic position and are thus contrary to European competition law?

3. Does the Commission intend to take steps against Microsoft, and if so, what steps?

E-2052/02EN
Answer given by Mr Monti
on behalf of the Commission
(6 September 2002)

As the Commission has highlighted in its replies to written questions E-1823/02 and E-1824/02 by Mr Meijer, and P-2053/02 by Mr Doorn:

1. The Commission is aware of the introduction by Microsoft of a new licensing programme.

2. The Commission has not at this stage formally investigated this issue. The Commission cannot therefore confirm or deny whether the terms of this licensing programme may constitute an abuse of a dominant position in contravention of the Community’s competition rules.

3. For reasons of efficient allocation of its limited resources and in light of its ongoing case against Microsoft, the Commission agreed with several national competition authorities in 2001 that these competition authorities would conduct the first analysis of Microsoft’s new licensing policy. Taking into account the work that has been done by the relevant national competition authorities on this issue, the Commission is currently examining with these authorities the most efficient way to carry the investigation forward.