Wednesday, October 7, 2009

Microsoft had abused its dominant market position

US telecom giant AT&T said that Apple iPhone owners would be allowed to use Internet voice calling on its wireless network, paving the way for services such as Skype."Today's decision was made after evaluating our customers' expectations and use of the device compared to dozens of others we offer," said Ralph de la Vega, president and chief executive of AT&T mobility and consumer markets, on Tuesday.AT&T, the exclusive US carrier of Apple's smartphone, said it had informed the computer titan and the Federal Communications Commission (FCC) of its decision to allow Voice over Internet Protocal (VoIP) calling on its third-generation (3G) wireless network.FCC chairman Julius Genachowski welcomed the move."When AT&T indicated, in response to the FCC's inquiry, that it would take another look at permitting VoIP on its 3G network I was encouraged," he said in a statement. "I commend AT&T's decision to open its network to VoIP."Opening wireless services to greater consumer choice will drive investment and innovation in the mobile marketplace," Genachowski said.AT&T previously only allowed VoIP calling using less reliable Wi-Fi connectivity.Skype bypasses the standard telephone network by channeling voice and video calls over the Internet. It allows users to call others free of charge and to connect with land lines or mobile devices at low rates.It is consulting PC makers, software firms and consumers on Microsoft's offer to allow users to pick different browsers when they install Windows.
The bloc ruled in 2004 that Microsoft had abused its dominant market position by freezing out rivals.
It said Microsoft must let rivals' products run on its operating system.
"The commission will formally market test proposals made by Microsoft to address concerns regarding the tying of Internet Explorer to the Windows PC operating system," said the EU's competition commissioner Neelie Kroes.
"The preliminary view is that Microsoft's commitments would indeed address our concerns," she added.
"PC users should have an effective and unbiased choice between Internet Explorer and competing web browsers."
Long history
In July, Microsoft proposed a consumer choice screen that allowed users to pick from a number of different browsers.
The commission then asked Microsoft to improve the choice screen, which it has now done.
The latest proposal, and the one which the EU is consulting on, features a choice of 12 browsers.
"Today's decision is a significant step toward closing a decade-long chapter in competition law concerns in Europe," Microsoft said in a statement.
Back in 2004, the EU fined Microsoft and forced it to offer a version of its Windows operating system without Microsoft's own media player.
The company was also told to give rivals more information about how Windows works, so they could make their own software integrate better with the operating system.

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