[0] Ed Black Statement Supporting EU Announcement on Microsoft; CCIA President Explains the Impact of the Statement of Objection.

Business Editors

WASHINGTON--(BUSINESS WIRE)--Aug. 3, 2000

The following statement was released today by CCIA:

"Today's announcement by the European Commission issuing a Statement of Objection to Microsoft regarding the company's monopoly in the desktop operating system market and its related conduct in the server market, is one more official finding by a government body that Microsoft's illegal conduct must stop.

"It is not surprising that the law enforcement officials of the EU find that consumers have been hurt by Microsoft's global monopoly strategy. What is most significant is that the EU finding shows that Microsoft has not been deterred by the proceedings in the U.S. Indeed, they continue to abuse their monopoly power to dominate the server and the Internet browser markets. The EU has begun a process that will provide further opportunity to protect innovation and choice in key sectors of the high-technology industry.

CCIA is pleased that it's White Paper -- Windows 2000: Blueprint for Domination, which we earlier provided to the EC, may have helped provide some insight into Microsoft activities relating to the server and internet markets. Preserving a dynamic free marketplace is the essential role of the antitrust laws, and is key to the innovation and prosperity the U.S. has achieved."

Background:

-- The Commission has determined there is a need to open formal

anti-trust proceedings, The Statement of Objection against

Microsoft launches that effort.

-- The Statement of Objection is not a public document but has

been served upon Microsoft. Under the EU procedure, Microsoft

has the right to request a hearing before the Commission,

which would be set in a few months time. The hearing is not a

courtroom trial and would be expected to last only a few days.

-- Under EU procedure, the Commission typically issues a decision

and applicable remedies, within several months of such a

hearing. If the decision were adverse to Microsoft, they would

have a right of appeal within the European Court system.

CCIA is an international, nonprofit association of computer and communications industry firms, representing a broad cross-section of the industry. CCIA is dedicated to preserving full, free and open competition throughout its industry. Our members employ almost a million workers and generate annual revenues in excess of $300 billion.