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US still bleating on about EU Microsoft ruling

Last thing Bush wanted in election year was a powerful US firm getting put in its place overseas...

By Declan McCullagh

Published: 31 March 2004 08:20 GMT

The US State Department has risked further accusations of protectionism by expressing its concerns to European regulators about last week's decision to levy harsh penalties and a €497 fine on Microsoft.

The quiet protest from the Bush administration comes as concern is growing on Capitol Hill over the European Commission's penalties, which came after the Justice Department agreed to a consent decree that includes ongoing federal court oversight of Microsoft's business practices.

A US government official, who has direct knowledge of the concerns communicated to EU regulators, said: "The State Department has been involved in an off-the-record attempt to focus their attention" on the harm the decision could bring about.

A State Department representative declined to comment.

US politicians gave at least six speeches over a three-day period last week on the floor of the Senate and House of Representatives, all of which condemned European Competition Commissioner Mario Monti's ruling that Microsoft violated antitrust laws and would have to unbundle Media Player from Windows.

The strongest denunciation came from Senate Majority Leader Bill Frist, who said: "I now fear that the US and EU are heading toward a new trade war - and that the commission's ruling against Microsoft is the first shot."

Declan McCullagh writes for News.com

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