Microsoft under attack from Europe

The European Union has sent a formal legal warning to Microsoft for allegedly using its power to gain an edge in the market for…

The European Union has sent a formal legal warning to Microsoft for allegedly using its power to gain an edge in the market for server software. The US software company has two months to reply to the European Commission's claims. If it fails to satisfy its concerns, the Commission could fine it up to 10 per cent of the company's worldwide revenues, although such a large fine has never in practice been imposed. It is normally in the region of one per cent. The European Commission said it had sent a "statement of objections" to Microsoft "for allegedly abusing its dominant position in the market for personal computer operating systems software by leveraging this power into the market for server software."

The European Commission said its action followed a complaint by Sun Microsystems alleging Microsoft had breached EU anti-trust rules by engaging in discriminatory licensing and by refusing to supply essential information on its Windows operating system. The EU move is the latest legal headache for Microsoft, which earlier this year was ordered split in two by a US judge in a major anti-trust case. Microsoft was found to have acted anti-competitively in its fight against rival Netscape.

STILL IN LOVE: Ireland had a mini scare last week with the re-emergence of the "ILOVEYOU" virus. Offices began receiving copies of the virus on Tuesday, less than two months after it attacked an estimated 50,000 computers worldwide. The latest outbreak was described as a "mini epidemic" by Irish Internet security firm Entropy. However the virus in this instance caused little damage as most computers had been protected against the virus after the May attack. Users have once again been advised to delete anything with the subject line "Fwd: Joke" or with the attachment entitled "Very Funny".

VOTE MAHON, VOTE OFTEN: Irish footballer Alan Mahon looks set to be elected best newcomer at Portugese club Sporting Lisbon after his summer move from Tranmere Rovers. In an online poll Mahon is in the lead with more than 40 per cent of the vote. Of course the surprise result is largely, one would presume, as a result of a rampant email message urging fans and non-fans alike to vote for Mahon at www.scp.pt. Late last year another little-known Irish soccer player Ronnie O'Brien ran away with the vote for Time Maga- zine's person of the century only to be disqualified on a technicality. CAUGHT

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NAPSTERING: Freenet is setting up a company in the US to challenge copyright laws which have plagued music-swapping website Napster. Details of the new venture are being kept secret until the December launch. Freenet, which was set up by Irishman Ian Clarke while in Edinburgh University, is responsible for software which allows digital downloads over the Web.

PROFIT AND LOSS: Lastminute.com made a loss of £9.3 million sterling in the last three months, the group has announced. The figure, recorded for the quarter-year to June 30th, compares to a loss of £1.1 million for the same period last year. But the company said its subscriber numbers across Europe had jumped by 50 per cent to 2.1 million while the number of items sold over its service grew by 21 per cent to 90,500. Lastminute was floated in March but entered the spotlight after its shares fell sharply below their issue price leaving investors nursing big losses. Meanwhile AltaVista has revealed it lost roughly $30 million during the quarter ending July 31st compared with a loss of $237 million in last year's second quarter.

WEB WARY: Lack of confidence in Web security is stopping consumers shopping online, a survey has revealed. The UK's National Consumer Council (NCC) said shoppers were reluctant to give credit card and personal details online and were also put off buying on the Web because they were unable to see goods before purchasing. The survey also reveals that groceries, computer software, books, music and videos are the most popular items sold online.

HARD HUNT: Online job-hunters are being misled with inflated salaries offered to make jobs more appealing, according to a report. A British engineering firm asked an unemployed project manager to test how effective the Web was in finding a job. He registered with 12 sites in three months but was only offered one job interview.

KING'S SHILLING SECURE: Stephen King is breaking even with his latest Web book-release venture despite relying on the honesty of online readers. King asked readers to pay $1 for each chapter of The Plant to be downloaded, and said he will keep writing as long as 75 per cent of readers pay up. In the first week of The Plant going online over 76 per cent of readers either promised or paid the money.

PHONE CASE: An American doctor is suing a mobile phone maker and a telecommunications company for $786 million, claiming years of using the wireless devices caused his brain cancer. Dr Chris Newman (41) of Jarrettsville, Maryland, brought the suit against Motorola and Verizon Communications in Baltimore City Circuit Court. The malignant tumour was discovered in March 1998 behind Dr Newman's right ear. Dr Newman's lawyer, Ms Joanne Suder, said her client, a neurologist, used mobile phones at least several times a day between 1992 and 1998. Meanwhile an Australian study has shown that "hands-free" kits can reduce exposure to radiation from mobile phones by more than 90 per cent.

IN BRIEF... A digital media district may be built in Dublin to house Internet-based companies. . . The FBI has been given 10 days to respond to a request from information by a privacy group about the bureau's monitoring of email to and from convicted criminals. . . Computer firm Apple is suing people who allegedly posted secret product information on the Internet. . . NCR Corporation has agreed to acquire 4Front Technologies Inc. for about $250 million. . . Microsoft has taken action against 7,500 website postings that allegedly offer pirated or counterfeit software. . .