Sunday, February 01, 2004

On Kerry's post on the EU's Competition Branch's proposed fines on Microsoft:

I read it Kerry. I was actually unaware that this case was going on. I understand the EU Commission?s Competition Branch argues that because Windows supplies its OS with an embedded Media Player, software suppliers of other Media Players have trouble competing. So basically it?s the Microsoft Explorer/Netscape Navigator story again. Since that litigation battle was fought within the US I don?t think the EU?s Competition Branch can be criticized on its principal grounds to open up a similar case in the first place. But, since for as far as I know, and apparently Scott is of the same opinion, other Media Players have no problem operating under Windows. And so it looks to me that maybe the Competition Branch shot itself in the foot.

Even so, since I assume that this particular EU body has brighter minds on its payroll than your servant it might be interesting to hear their story on the compatibility issue. In short, I don?t think the EU?s Competition Branch in this matter acted no different from the US Justice Department a few years ago in the browser case ? but yes, it may be overreacting.

However, don?t throw away the child with the bathwater as they say over here. The EU Commission?s Competition Branch IS generally doing a good job. And honestly, when it?s mentioned in the newsreels over here it?s typically because it is scrutinizing some deal between a national government and a company where gross state-subsidies are involved: actually the Competition Branch is fighting these practices ? which are diametrically opposed to free market mechanisms, and which have been so common in Europe over the past decades.

Let me give you just one example: the Ryanair/Charleroi airport case. Ryanair is an Irish low cost carrier offering inter European flights at incredible prices; I think you could compare it with ValuJet in the US (does it still exist?). Anyway, they offer flights like Brussels/London for, say, 9.99 EUR (I kid you not!!!). Well, since 1997 they operate the airport at Charleroi, 45 minutes to the south of Brussels. Charleroi, a former industrial town which has one of the highest unemployment numbers (and crime rates) in the country, was so eager with the prospect of additional jobs that it sought the Wallonian Region?s support in persuading Ryanair to invest heavily in its underused airport. The Wallonian Region and BSCA (Brussels South Charleroi Airport) awarded Ryanair a 50% reduction in landing fees, a 1 EUR/passenger fee on ground-handling assistance, substantial (millions of euros) financial support in start-up benefits as well as 4 EUR support per passenger to reduce Ryanairs advertising costs and ticket prices?. A typical example of how socialist (communist?) Wallonia is running its business. For an excellent article on the subject click here.

And a somewhat more digestible article can be found over here.

Well now, the European Commission' CB is expected to announce its findings on the Ryanair/Charleroi deal on February 3.
If the Competition Branch has its way, Ryanair will have to repay at least part of the unlawful support from the Wallonian Region. Really, mostly the CB acts in favour of fair competition. I may keep you updated on the ruling.

For those of you with a fair share of time, find out more on similar 2003 cases here.


...........Tom, what kind of dictionary are you using? I checked out "BWEEEEUUUUUAAAAARRRRK" in my Dutch/English dictionary and in English it should read "BRROOOOOOOOOAAAAAAARROOOOOOOORRRK! Splash!!!"


To be fair, I thought another EU enormity would have caught your attention: namely, the EU Commission?s willingness to end the weapons embargo against China.

How ?bout that? Can I now quote Mr. F*cking Human Rights Champion Pr?sident Jacques Chirac, He Who Cared So Much For The Welfare Of The Iraqi People: "Respect for human rights is a necessary condition for the development of modern societies and economies. I know that this is one of your priorities." Adressing Hu Jingbao on hist state visit to France, a brightly red lit Eiffel Tower in hte background. Click here, if you please.

His conscience thus silenced, Mr. Chirac will now do his utmost best to weigh in on the European Parliament (read the CNN article: Parliament is opposed) to lift the arms sales ban come Spring. I must say that I was rather disappointed with President Bush?s harsh remarks against the Taiwanese government when President Chen Shui-bian suggested the referendum on independence and against hundreds of Chinese missiles pointed at the tiny island state. I guess that's what they call Realpolitik. This Chirac however bakes the cake brown? Never mind that the majority of Chinese is living in appaling conditions... HR are violated on an unsurpassed scale... the commie Chinese are violating virtually every accord made with the British on the existence of democracy in Hong Kong... I can now really understand your fears of a France-dominated EU. I can only hope the soon-to-be entry of 10 new member states will dilute France?s influence even further.

And now back to the Super Bowl! Have a nice Sunday yet!

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