Endgame for Europe's Microsoft Case

On Sept. 17, the day that the European Commission (EC) won its sweeping court victory against Microsoft (MSFT), Neelie Kroes, Europe's tough competition cop, was asked when she would like Microsoft to comply in full with the EC's 2004 antitrust decision. "The sooner the better," was her terse reply. "Let them start this afternoon."

It took several more weeks of negotiations, including breaking bread with Microsoft Chief Executive Steve Ballmer in a small restaurant near Kroes' hometown of Rotterdam and almost daily follow-up phone calls with him, before she finally got her way. On Oct. 22, a beaming Kroes announced closure to Europe's nine-year-long battle with the U.S. software giant. Microsoft, she explained, agreed to three substantial changes in its business practices that will bring it into compliance with the EC's 2004 ruling. She called the agreement "a victory for consumers."