Microsoft replies to EU on possible new fine
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BRUSSELS, April 23 (Reuters) - Microsoft (MSFT.O) said on Monday it had responded to European Commission charges that it set unreasonably high prices to discourage would-be competitors from making server software.
The company also said it would not request an oral hearing on the charges, which could result in a new fine against it.
"Microsoft confirmed that it has submitted today its response to the European Commission's statement of objections
(SO) of March 1, 2007, concerning the pricing of licenses for the work group server protocol program," it said.
In March 2004, the Commission imposed a record 497 million euro ($674 million) fine on Microsoft and ordered it to change its business practices, ruling the company had failed to give information to other makers of small-business servers needed to compete with Microsoft's products.
Microsoft has said it would charge for interoperability information because it was based on the company's own innovative work and protected by patents.
But the Commission charged in March this year that competitors gave away such software whether or not it was patented.
"The Commission's current view is that there is no significant innovation in these protocols," European Competition Commissioner Neelie Kroes said in a statement that month.
"I am therefore again obliged to take formal measures to ensure that Microsoft complies with its obligations," she said.
A Commission spokesman said in March that Microsoft's market share of small-business server software had grown to 75 percent while it defied the Commission.
((Reporting by David Lawsky, editing by Dale Hudson; Reuters messaging david.lawsky.reuters.com@reuters.net; e-mail david.lawsky@reuters.com; +322-287-6811. Brussels newsroom))
($1=.7370 euro) Keywords: MICROSOFT EU/RESPONSE
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