Full investigation into the Microsoft/Liberty Media/Telewest concentration

United Kingdom

The Commission has decided to open a full investigation into the proposed acquisition of joint control by Microsoft Corporation (Microsoft) with Liberty Media Corporation (Liberty) over Telewest Communications plc (Telewest). The Commission’s detailed assessment will focus, in particular, on the provision of software for digital set-top boxes in the UK and its impact for the choice of the British cable subscribers. A final decision by the Commission is expected by early August.

The Commission must appraise the interests of the intermediate and ultimate consumers and must ensure that technology is not used to restrict the choice of services which consumers can access.

On 1st March 2000, the notifying parties submitted two undertakings that were meant to preserve Telewest’s independence with respect to its choice of cable television set-top box operating system software and to ensure the ability of content providers and software applications developers to develop products that are compatible with Microsoft’s television set-top box operating system. However, the undertakings could not remove the serious doubts raised by the notified operation in terms of foreclosure of the market (IP/00/287).