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Microsoft EU Ruling Bodes Ill for Google, Apple

  • Fortune, Wednesday, September 19, 2007 11:01 AM
Google and Apple must have stood up and taken notice of the European Union's decision to uphold an antitrust ruling against Microsoft that was made in 2004. The verdict, more than forcing Microsoft to let go of the monopolistic practice of bundling software with its operating system, shows that Europe's antitrust authorities have the power to crack down on U.S. companies they believe are illegally limiting competition.

So other companies that dominate their respective markets better watch out. In particular, Intel, Apple and Google are also being investigated by the EU: Intel for its pricing of computer chips, Apple for its pricing of music downloads, and Google for its proposed acquisition of ad-serving giant DoubleClick--which could give the search giant power to set ad rates around the world.

Mighty Microsoft is no longer what it once was, and the EU probe focused on products that wouldn't be considered part of the software giant's core business. However, you couldn't say the same thing for Intel, Apple and Google; any restrictions on their business practices could have a severe impact on revenues. Microsoft must now open its software platforms for media and work-group servers to competition--a decision that could force Apple to make iTunes compatible with other media devices or make Google unveil how its PageRank system works, says one antitrust law professor.

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