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from: Joe Barr
date: 2003-05-20 09:37:54
subject: Washington Post: Microsoft backpedaling on illegal funding of sales ag

From: "Joe Barr" 


http://www.washingtonpost.com/wp-dyn/articles/A14517-2003May20.html?nav=hptoc_t
n

By Cynthia L. Webb
washingtonpost.com Staff Writer
Tuesday, May 20, 2003; 9:38 AM

Microsoft's use of aggressive sales practices to defeat competition for
other operating systems, namely the open-source Linux platform, have put
the company in potential hot water again.

Already under the microscope in Europe for alleged anticompetitive
behavior, the company's business practices have been criticized again
following a report in The International Herald Tribune last week detailing
internal company e-mails and memos that indicated Microsoft would offer
steep discounts to take business away from cheaper competitors, including
Linux.

In a follow-up piece in The Seattle Times today, Microsoft does some
backpedaling. "A controversial Microsoft program offering discounts to
win business from lower-priced competitors has only been used twice in
Europe since July, the company's top lawyer said yesterday. The revelation
could be part of an effort to mute calls for a new European Commission
antitrust investigation," the newspaper reported. "I have a great
deal of confidence this program has not in any way inappropriate impact on
commerce in the European Union," Brad Smith, Microsoft senior vice
president and general counsel, told The Seattle Times.

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