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19 March 2004

Don Falk Discusses European Regulators Action in Microsoft Case

19 March 2004 - The New York Times reported that European regulators announced on Thursday that settlement talks with Microsoft had collapsed, leaving it virtually certain that an antitrust ruling would be issued against the company that could limit its ability to add new features to its software in Europe. Mayer, Brown, Rowe & Maw LLP partner Don Falk was quoted by the newspaper stating that the European Commission "appears set on breaking the cycle of investigations and enforcement actions against Microsoft that have had little or no practical effect on Microsoft's conduct or on the markets it dominates."

The New York Times reported that beyond any penalty it faces in Europe, a ruling exposes Microsoft to the risk that its strategy of bundling software applications with Windows will once again make it a legal target in the United States. Microsoft's power and financial success derive in part from its ability to integrate applications - including those in competition with the products of other software companies - as free features of the Windows operating system.

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