Neelie Kroes Press Conference Transcript (Unofficial)

ACT had a few folks at today's press conference where Neelie Kroes spoke regarding the Court of First Instance decision. As there's no official transcript yet available, and in light of a clarifying statement to some of Kroes' remarks, here's a rough transcript of the Q & A that occurred (translated into English when needed):

Q: Are you expecting a rush of dominant companies to your door to discuss implications of the judgment for them?
A. No.

Q: Are you now going to impose hefty fines on Microsoft for non-compliance?
A: Too early to tell.

Q: Do you expect this judgment can be used by the Commission as a precedent to move more quickly on other cases?
A: Yes, I hope that my services will be in a position to speed up work on other cases.

Q: Will you look into the legitimacy of access to information by the Trustee?
A: No

Q (in Dutch): How will consumers notice the difference after this judgment?
A (in Dutch): The interests of consumers are central. They will notice that the market is going to be opened up in different ways: 1. more choice; 2. lower prices; 3. more research and innovation.

Q (in Dutch): What does this judgment mean for the future of Commission policy?
A (in Dutch): It confirms that our policy is right to place the consumer as our priority no. 1 and innovation as our priority no. 2.

Q: How will you know if your action against Microsoft really succeeded? Will you measure sales of other products competing with Window? Will there be some kind of benchmark?

A: I'm not the one to take decisions [to buy a different product from Windows]. That's the consumer's decision. But for the consumer to take that decision, it is a must that there is a choice. Let's wait and see.

Q: Do you expect Microsoft will appeal?
A: No, this judgment was very clear.

Q: Will the Commission now take further actions against Microsoft in other product areas ?
A. I hope not. I hope it's clear now to Microsoft that we stick to our point to have competition.

Q: A similar ruling was rendered in the  U.S. against Microsoft in the past, but Microsoft's market shares have still not diminished.

A: Microsoft should comply. And when they do, market shares will change. In addition, competitors will also be stimulated by today's judgment.

Q: Interoperability is very important in many areas. Do you think this judgment is going to cause big waves in other segments as well (such as MP3 players for example) ?

A: In any sector where interoperability is important it makes sense to change a situation in which there is no interoperability, and to open other markets too.

Q: Microsoft also a partner of the Commission in many other fields. How will the Commission now behave with Microsoft after the judgment?

A. The Commission will be consistent. It depends on what type of joint activity it is.

Q: In how far is this judgment a precedent ? Will the Commission now take action with respect to Microsoft Office?

A: That's not the way we deal with this. Let me say with a smile that it's very simple: if Microsoft is not in line with our policy, we take action; if it is, then excellent.

Q (in Dutch): What was the importance of this judgment for the Commission?

A (in Dutch): We have been strengthened in our approach, and in our belief that the consumer and innovation are the most important. We have also been confirmed in our approach to what competition entails.

Q: With respect to the bundling of Windows and Media Player. Very few people have bought the unbundled version. The remedy has clearly failed. Will you change the remedy ?

A: No.

Q: Most of the Commission's evidence regarding Microsoft's non-compliance came from evidence held by the Trustee. How is this affected by the judgment ?

A: We will study that section of the judgment very carefully. We note that the Court does not question the legality of an independent trustee appointed by the Commission from a list reviewed by Microsoft.

Q: What are the Commission's costs ?
A: I don't have an exact figure.

Q: You seem to be certain that Microsoft's market share will diminish. What share would you be satisfied with ?
A: I'm not able to say precisely how much. It depends on a couple of issues. But obviously the path Microsoft took until today is far too much. It will have to diminish by more than a couple of %. We want the market to be open, so that competitors can do their job.

Q: What's the influence of this judgment on the Intel case ?
A: It's too early to say. We will study this carefully. Obviously, the background of this case must be respected.

Q: What is the Commission going to do about  Vista?
A: it is too early too say, but you will be informed soon.

Q: Did you talk about Microsoft with the Chinese officials when you were in China?
A: No

Q (in French): In the USA  a settlement was reached with Microsoft, but now the procedure is ongoing in the US too as Microsoft is not complying. Is there going to be a dialogue with the US authorities ? Do you think the judgment today will have an influence over what happens in the US and will you discuss that with them?

A: Yes, we are definitely talking with our US   colleagues. I will be visiting the  US in a week, and Microsoft will certainly be "on the menu".

Q (in Dutch): Are you taking into account that Microsoft may appeal and the Commission may lose on appeal?
A (in Dutch): No.

Q (in Dutch): Really ?
A (in Dutch): I am a) a democrat and b) an optimist. Today the Court reached some very clear conclusions. I am not going to worry about problems that do not exist yet and that may never exist.

Q: Vesterdorf gave a rare interview to a German newspaper, in which he gives his personal view that fines are not enough to deter cartels and that there should be personal liability for cartel leaders, such as for example jail times. Would you be in favor of this ?

A: I have read the interview with Vesterdorf. It's highly interesting. We have started a discussion on these subjects at the Commission. I do not agree with his view that fines do not work, or that the consumer ends up paying for the fine. I know the US have a system of personal liability; so do some of our Member States but they have been using it only very rarely. I am not in favor of that at the moment. I believe the system of fines is working quite well, even if we still need to fight like hell against cartels. That's the reason why I re-organized DG Competition and created a special cartel unit to fight them.

Q (in Italian): Will this judgment not make political relations between the US and the EU even more difficult ?
A. We have a very close relationship with our US colleagues and communicate with them on a daily basis. But there are differences between us too, and we respect that. It is never an issue in our relationship. For some things we have a different culture. We found it important for example that the Chinese decided to base themselves largely on the EU system for their antimonopoly law. This is definitely not a black spot on our relations with the US. We are professionals and that's it.

Q (in Dutch): Microsoft's current market share is nearly 95%. To what extent can market share be a legal criterion to decide whether Microsoft is complying or not ?

A (in Dutch): We know that one single producer has a market share of 95%. This is clearly a monopoly and this is not acceptable. No competitor has an incentive to enter such a market. I want Microsoft's market share to diminish to significantly less than 95%. I can't say that it has to be precisely 50% or whatever number, but it has to be significantly less than 95%.

Q: Do you think Microsoft is going to start a new procedure ? Or are there going to be more complaints ?
A: We have a clear judgment from the Court that their dominance is preventing competition. Microsoft must now comply. No more excuses now.

Q (in Dutch): Do you think your reputation as an antitrust regulator was riding on this case ?
A (in Dutch): No, our reputation does not depend on one case. We do our job carefully, with good faith, and with arguments. We have not suffered any reputation damage. This does not depend on one case. In any event, I do not think losing a case now and then is bad for our reputation.

Q: In what timeframe do you expect or do you want Microsoft's market share to diminish ?
A: The sooner the better. Let them start this afternoon.