Bloomberg News

Microsoft Sued by MiniFrame Over Alleged Unfair Competition

October 20, 2011

(Updates with claims in second paragraph.)

Oct. 20 (Bloomberg) -- Microsoft Corp., the world’s largest software maker, was sued by Israel-based MiniFrame Ltd. for allegedly offering anticompetitive terms for multiserver operating systems.

MiniFrame said Microsoft uses its monopoly on the client operating-system market to interfere with potential partners and customers. Before 2007, Microsoft didn’t include any restrictions in its licenses that would prevent multiple users, MiniFrame said in a complaint filed today in Manhattan federal court.

MiniFrame alleges that Redmond, Washington-based Microsoft is attempting to retain its monopoly on the server operating- system market and the client operating-system market and is attempting to monopolize the personal-computer sharing software market and the multi-user software market.

“Microsoft recognized the competitive threat which shared PC systems posed and engaged in several anticompetitive strategies in order to ensure that it will maintain or otherwise have a monopoly for any multi-user market, whether it be the server operating system market, the PC sharing software market, or the combination of the two markets,” MiniFrame said.

MiniFrame said there no technological reason multiple users can’t access or use the same Windows Client Operating System at the same time.

A Microsoft representative didn’t immediately return a voice-mail message seeking comment about the complaint.

The case is MiniFrame v. Microsoft Corp. 11-CV-7419, U.S. District Court, Southern District of New York (Manhattan).

--Editors: Andrew Dunn, Stephen Farr

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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