(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| FTC Warning to Microsoft Unique in Japan: Chief Investigator
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December 17, 1998 (TOKYO) -- Microsoft Co., Ltd. of Japan accepted on
Dec. 10 a
recommendation given on Nov. 20 by the Fair Trade Commission (FTC)
on Microsoft's improper sales of personal computer software accompanying
the Windows operating system.
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The company's acceptance means that illegal acts pertaining to tie-in
sales of Microsoft Word, Excel and Outlook in personal computers were
admitted by Microsoft's Japanese subsidiary.
Nikkei Personal Computing, a magazine published by Nikkei
Business Publications, Inc., interviewed Tokuhiko Obata, director of
the FTC's Second Special Investigating Division (Investigation Bureau),
on the recommendation. Obata had served as director of the case.
Nikkei Personal Computing: Please explain the recommendation (which
the Fair Trade Commission gave Microsoft Co., Ltd. of Japan)?
Obata: Following our investigation of Microsoft, we recommended
that the software company discontinue the pre-installation of Excel
and Word on PCs, and warned the company about its practice of combining
its Internet Explorer Web browser with the Windows operating system.
Nikkei PC: The recommendation did not specify the versions of
Excel and Word software.
Obata: That is because we considered circumstances peculiar to
the PC industry.
The speed of software upgrades is fast, and if we specify certain versions
in our recommendation, the recommendation may quickly become ineffective.
Also, Microsoft has violated the antimonopoly law in more than one version
of its software products.
Therefore, we did not specify versions in our recommendation. This will
prevent Microsoft from engaging in other illegal combined sales in the
future.
Nikkei PC: On the matter of the Internet Explorer, why did you
issue Microsoft a warning instead of a recommendation?
Obata: That is due mainly to circumstances unique to Japan.
Our probe of the distribution of Web browsers in Japan found that distribution
via CD-ROMs in magazines accounted for 85 percent of the total. Magazines
usually provide more than one Web browser.
Therefore, even if Microsoft pressures Internet service providers (ISPs)
not to distribute rival Web browsers of other companies, the attempt
won't constitute a substantial prevention of competition.
However, it is true that Microsoft's agreement with ISPs had a provision
to limit distribution of competing browsers. The FTC decided to give
the company a warning to prevent such action from occurring again.
Nikkei PC: What are the concrete steps to be taken once Microsoft
has fully accepted the recommendation?
Obata: Microsoft accepted the recommendation on Dec. 10. We will
make a decision in the form of an official order, possibly by the end
of December. The FTC will notify PC makers of the decision, and announce
to general consumers details of the decision in newspapers and other
media.
Related story: Microsoft
Japan Ordered to Halt Unfair Trade Practices
(Nikkei
Personal
Computing)
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