Microsoft has now asked the European Commission to open up to the public a hearing that could lead to a large fine for Microsoft, but the European Commission has said that procedural regulations require it be closed, which in my opinion isn’t good at all!

BRUSSELS (Reuters) – Microsoft (Nasdaq:MSFT – news) asked the European Commission to open to the public hearings that could bring the U.S. software giant a large fine, but the Commission said on Tuesday that regulations require they be closed.

The administrative hearings on March 30 and 31 will be on charges that Microsoft failed to carry out sanctions imposed by the Commission, the executive arm of the 25-country European Union, two years ago for violations of antitrust law.

Microsoft faces fines of up to 2 million euros ($2.4 million) daily.

“We waive our right to a confidential hearing to ensure a full and fair examination of the issues in this case,” Microsoft told Reuters on Tuesday, adding that it wanted “the opportunity to respond to the Commission’s allegations in an open hearing.”

Commission spokesman Jonathan Todd told Reuters: “The request was refused by the hearing officer because the procedural regulations explicitly prohibit this.”

Article 15 of the Commission regulation covering mergers says: “Formal oral hearings shall not be public.”

However, Microsoft will still have the option of stepping outside the hearings to present either an account of them or the witnesses it produces, so that reporters can speak with them.

The Commission found two years ago that Microsoft used its dominant position with the Windows operating system to damage rival makers of server software used to run printers, password sign-ins and file access for small work groups.

The Commission fined Microsoft 497 million euros for its violations and was also ordered to offer a version of Windows without audio-visual software.

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The Commission also said Microsoft must provide interconnections so competitors could get their server software to run as well as Microsoft’s own with Windows desktop machines.

It said the company had failed to provide adequate documentation for the interconnections, so competitors were unable to use it.

On a separate track, the Commission is also looking into the amount charged by Microsoft for licenses to use the interconnections.

The Commission gave Microsoft a deadline last year to provide the documentation, but said as recently as this month that the company had not complied.

The Commission opened proceedings against the company to fine it for failing to comply, and the hearings are part of those proceedings.

Microsoft has responded to the Commission. It opened its reply to the formal charges and posted them on the Web.

It also offered to open some of its source code — the blueprint of its software — for server software to licensees.

Software company Samba, a Microsoft critic and a third party in the case, has also opened some of its filings and posted them to the Web.

And with Microsoft’s permission, the Commission opened some of its own documents.

A hearing on Microsoft’s underlying challenge to the Commission’s 2004 antitrust decision against it will be held in Luxembourg before the EU’s Court of First Instance from April 24.

($1=.8348 euro)

Via: Yahoo/Reuters