ACT had a few folks at today’s press conference where Neelie Kroes spoke regarding the Court of First Instance decision. As there’s no official transcript yet available, and in light of a clarifying statement to some of Kroes’ remarks, here’s a rough transcript of the Q & A that occurred (translated into English when needed):
Q: Are you expecting a rush of dominant companies to your
door to discuss implications of the judgment for them?
A. No.
Q: Are you now going to impose hefty fines on Microsoft
for non-compliance?
A: Too early to tell.
Q: Do you expect this judgment can be used by the
Commission as a precedent to move more quickly on other cases?
A: Yes, I hope that my services will be in a position to speed up work on other
cases.
Q: Will you look into the legitimacy of access to
information by the Trustee?
A: No
Q (in Dutch): How will consumers notice the difference
after this judgment?
A (in Dutch): The interests of consumers are central. They will notice that the
market is going to be opened up in different ways: 1. more choice; 2. lower
prices; 3. more research and innovation.
Q (in Dutch): What does this judgment mean for the future
of Commission policy?
A (in Dutch): It confirms that our policy is right to place the consumer as our
priority no. 1 and innovation as our priority no. 2.
Q: How will you know if your action against Microsoft
really succeeded? Will you measure sales of other products competing with
Window? Will there be some kind of benchmark?
A: I’m not the one to take decisions
product from Windows]. That’s the consumer’s decision. But for the consumer to
take that decision, it is a must that there is a choice. Let’s wait and see.
Q: Do you expect Microsoft will appeal?
A: No, this judgment was very clear.
Q: Will the Commission now take further actions against
Microsoft in other product areas ?
A. I hope not. I hope it’s clear now to Microsoft that we stick to our point to
have competition.
Q: A similar ruling was rendered in the U.S. against Microsoft in the past,
but Microsoft’s market shares have still not diminished.
A: Microsoft should comply. And when they do, market shares
will change. In addition, competitors will also be stimulated by today’s
judgment.
Q: Interoperability is very important in many areas. Do
you think this judgment is going to cause big waves in other segments as well
(such as MP3 players for example) ?
A: In any sector where interoperability is important it
makes sense to change a situation in which there is no interoperability, and to
open other markets too.
Q: Microsoft also a partner of the Commission in many
other fields. How will the Commission now behave with Microsoft after the
judgment?
A. The Commission will be consistent. It depends on what
type of joint activity it is.
Q: In how far is this judgment a precedent ? Will the
Commission now take action with respect to Microsoft Office?
A: That’s not the way we deal with this. Let me say with a smile that it’s very
simple: if Microsoft is not in line with our policy, we take action; if it is,
then excellent.
Q (in Dutch): What was the importance of this judgment
for the Commission?
A (in Dutch): We have been strengthened in our approach, and in our belief that
the consumer and innovation are the most important. We have also been confirmed
in our approach to what competition entails.
Q: With respect to the bundling of Windows and Media
Player. Very few people have bought the unbundled version. The remedy has
clearly failed. Will you change the remedy ?
A: No.
Q: Most of the Commission’s evidence regarding
Microsoft’s non-compliance came from evidence held by the Trustee. How is this
affected by the judgment ?
A: We will study that section of the judgment very
carefully. We note that the Court does not question the legality of an
independent trustee appointed by the Commission from a list reviewed by
Microsoft.
Q: What are the Commission’s costs ?
A: I don’t have an exact figure.
Q: You seem to be certain that Microsoft’s market share
will diminish. What share would you be satisfied with ?
A: I’m not able to say precisely how much. It depends on a couple of issues.
But obviously the path Microsoft took until today is far too much. It will have
to diminish by more than a couple of %. We want the market to be open, so that
competitors can do their job.
Q: What’s the influence of this judgment on the Intel
case ?
A: It’s too early to say. We will study this carefully. Obviously, the
background of this case must be respected.
Q: What is the Commission going to do about Vista?
A: it is too early too say, but you will be informed soon.
Q: Did you talk about Microsoft with the Chinese
officials when you were in China?
A: No
Q (in French): In the USA
a settlement was reached with Microsoft, but now the procedure is ongoing in
the US too as Microsoft is not complying. Is there going to be a dialogue with the US authorities ? Do you think the judgment today will have an influence over what
happens in the US and will you discuss that with them?
A: Yes, we are definitely talking with our US colleagues. I will be visiting
the US in a week, and Microsoft will certainly be "on the menu".
Q (in Dutch): Are you taking into account that Microsoft
may appeal and the Commission may lose on appeal?
A (in Dutch): No.
Q (in Dutch): Really ?
A (in Dutch): I am a) a democrat and b) an optimist. Today the Court reached
some very clear conclusions. I am not going to worry about problems that do not
exist yet and that may never exist.
Q: Vesterdorf gave a rare interview to a German
newspaper, in which he gives his personal view that fines are not enough to
deter cartels and that there should be personal liability for cartel leaders,
such as for example jail times. Would you be in favor of this ?
A: I have read the interview with Vesterdorf. It’s highly
interesting. We have started a discussion on these subjects at the Commission.
I do not agree with his view that fines do not work, or that the consumer ends
up paying for the fine. I know the US have a system of personal
liability; so do some of our Member States but they have been using it only
very rarely. I am not in favor of that at the moment. I believe the system of
fines is working quite well, even if we still need to fight like hell against
cartels. That’s the reason why I re-organized DG Competition and created a
special cartel unit to fight them.
Q (in Italian): Will this judgment not make political
relations between the US and the EU even more difficult ?
A. We have a very close relationship with our US colleagues and communicate with
them on a daily basis. But there are differences between us too, and we respect
that. It is never an issue in our relationship. For some things we have a
different culture. We found it important for example that the Chinese decided
to base themselves largely on the EU system for their antimonopoly law. This is
definitely not a black spot on our relations with the US. We are professionals and that’s
it.
Q (in Dutch): Microsoft’s current market share is nearly
95%. To what extent can market share be a legal criterion to decide whether
Microsoft is complying or not ?
A (in Dutch): We know that one single producer has a market
share of 95%. This is clearly a monopoly and this is not acceptable. No
competitor has an incentive to enter such a market. I want Microsoft’s market
share to diminish to significantly less than 95%. I can’t say that it has to be
precisely 50% or whatever number, but it has to be significantly less
than 95%.
Q: Do you think Microsoft is going to start a new
procedure ? Or are there going to be more complaints ?
A: We have a clear judgment from the Court that their dominance is preventing
competition. Microsoft must now comply. No more excuses now.
Q (in Dutch): Do you think your reputation as an
antitrust regulator was riding on this case ?
A (in Dutch): No, our reputation does not depend on one case. We do our job
carefully, with good faith, and with arguments. We have not suffered any
reputation damage. This does not depend on one case. In any event, I do not
think losing a case now and then is bad for our reputation.
Q: In what timeframe do you expect or do you want
Microsoft’s market share to diminish ?
A: The sooner the better. Let them start this afternoon.