April 25, 2024

Italian Software Maker Contests Microsoft’s Purchase of Skype

BERLIN — Reviving arguments that have dogged Microsoft in Europe for nearly two decades, an Italian software maker is asking European officials to block Microsoft’s $8.5 billion purchase of Skype, the Internet phone service, unless it is removed from Microsoft’s ubiquitous Windows Office platform.

In the past, the European Commission has been sympathetic to complaints about Microsoft’s strategy of “bundling” popular applications with Windows, eventually requiring the software maker to make concessions on its media player and Internet browser.

But legal experts were split over whether the latest complaint, filed Sept. 20 by Messagenet, a company based in Milan that is a rival to Skype Internet’s phone service, would complicate or prevent European approval of the takeover, which would be the largest in Microsoft’s history and the largest takeover in the technology sector this year.

“These types of complaints from competitors are to be expected,” said Denis Waelbroeck, an antitrust lawyer at Ashurts in Brussels. “I would expect that the commission will look at this seriously, but I think that in the end, the officials will reach their own independent decision. This doesn’t mean the complaint will be upheld.”

Joaquín Almunia, the E.U. competition commissioner, plans to make his decision on the acquisition public on Oct. 7. A spokeswoman for Mr. Almunia, Amelia Torres, on Wednesday declined to comment on Messagenet’s complaint. In general, she said the commission considered all submissions from competitors in antitrust cases.

Mr. Almunia, a Spanish economist, had been competition commissioner for less than two months when his office approved Microsoft’s takeover of Yahoo’s search business in February 2010. A Brussels antitrust lawyer, who did not want to be identified for fear of alienating a potential client in Microsoft, said the Italian complaint could scupper the deal.

“I would certainly say this kind of complaint, if it raises new issues that the commission has not previously considered, may derail the deal or, at least delay approval,” the lawyer said. Mr. Almunia could be persuaded to extend his present review into a more exhaustive second phase, which could take months or even years.

Or, the lawyer said, Microsoft could seek to delay an immediate decision and buy time by requesting an extension to prepare an answer to the complaint. Jesse Verstraete, a spokesman for Microsoft in Brussels, said the company declined to comment on the allegations in the complaint from Messagenet.

“The proposed acquisition is still undergoing regulatory review and we are working closely with the agencies,” Mr. Verstraete said. “Until all regulatory approvals are obtained, it is business as usual at Microsoft and at Skype.”

Besides asking Microsoft to “unbundle” Skype from Windows, Messagenet is urging European competition authorities to require Microsoft to effectively open Skype’s Internet phone network, which had 124 million regular users in June, to the services of rivals. Messagenet is asking the commission to do this by requiring Microsoft to disclose the confidential computer coding that would enable rival services to connect calls to Skype users.

Skype’s communication software does not operate with rival services. In May, after Microsoft announced its plans to buy Skype, the managing director of Messagenet, Andrea M. Galli, said he had written to Skype requesting the secret coding that would let the services interconnect, according to a copy of the complaint that Messagenet filed with the commission, and which was seen by the International Herald Tribune.

Mr. Galli said Skype never responded to the request.

Less than three weeks later, Skype ended its partnership with Digium, a company based in Huntsville, Alabama, whose software had enabled users of an open-source Internet phone service, Asterisk, to call and be called by Skype users.

At that time, a Digium product manager, Rod Montgomery, lamented in a company blog that Skype for Asterisk, the Digium software, had been a “strong and steady seller.”

Article source: http://feeds.nytimes.com/click.phdo?i=7eaae182a97ad3676dba0e02a1060740