Selling notebooks with Microsoft software may restrict competition. This is a conclusion of explanatory proceedings conducted by the President of UOKiK. On account of the global character of the company’s activity the case was referred to the European Commission.

The aim of the proceedings launched in December 2007 was to initially establish if the terms of sale of notebooks with pre-installed Microsoft operating system do not violate antitrust law.

The materials collected during the proceedings show that there are approximately 12 manufacturers registered abroad present on the Polish wholesale market of notebooks. They operate in Poland through their subsidiaries whose activity is limited to the distribution and advertising of the products.

UOKiK’s concerns were raised by the terms of cooperation between the notebook manufacturers and Microsoft. According to the information obtained by the Office, they are entitled to pre-install the Microsoft operating system in the equipment they produce. At the same time, they are obliged to report the number of notebooks sold. The manufacturers admit that despite the lack of any formal obligation to install the Microsoft products, the cooperation terms are so attractive to them that they have no choice but to continue it.

The Office established that as a rule manufacturers sell notebooks with the Microsoft operating system only. It is difficult for consumers to opt out of the pre-installed software, because, for instance, they cannot be reimbursed for its price. Meanwhile, it is the customer who should choose the operating system he/she wants to use.

In the opinion of the President of the Office, the information gathered during the proceedings indicates that an unlawful agreement between Microsoft and the notebook manufacturers might have been made. The nature of the practice - in particular the territorial scope of the involved enterprises’ activity - indicates that the agreement may affect the entire European Union. In connection with that, the President of UOKiK decided to refer all the gathered evidence to the European Commission.

The Commission and the antitrust authorities of the member states of the European Union cooperate closely applying Community competition protection rules. The cooperation includes providing the Commission with information concerning pending proceedings. Within the scope of its powers, the Commission may launch antitrust proceedings, and if the charges are confirmed, impose fines of up to 10% of the concerned enterprise’s total turnover of the previous financial year.

It is not the first case about which UOKiK informed the European Commission. Having conducted explanatory proceedings concerning Ferro Polska, a sweets producer, the Office informed the Commission that the anti-competition practices employed by the enterprise may influence the markets of the other EU member states. The information became the basis for the Commission to launch its proceedings. UOKiK also informed other member states and the European Commission about possible anti-competition practices of Velux, a roof window producer.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: mcieloch@uokik.gov.pl