Europe Officials Probe Marketing Of DVD Formats

REUTERS NEWS SERVICE

July 28, 2006; Page A10

http://online.wsj.com/article/SB115404038964819704.html?mod=technology_main_whats_news


BRUSSELS -- European Commission antitrust officials are investigating the 
licensing strategies of two rival new-generation DVD developers: HD-DVD and 
Blu-ray Disc.

The commission "sent a letter earlier this month to the makers of HD-DVD 
and Blu-ray to request information about licensing," a commission spokesman 
said.

HD-DVD was created by Toshiba Corp., while Blu-ray Disc was developed by a 
Sony Corp.-led consortium that includes Philips Electronics NV, Samsung 
Electronics Co. and Sharp Corp.

The two products will be battling for a share in the lucrative audio-visual 
market, providing the companies can persuade consumers that they should 
upgrade from their current DVD standard.

The commission wouldn't identify the companies nor say to how many it sent 
the request for information, but Sony confirmed it had received inquiries. 
Sony said it was cooperating with the commission. "There are no indications 
of any complaint, nor of any antitrust concerns on the part of the 
commission or anyone else," the company said.

The commission wants to know whether the licensing terms of the DVD formats 
could break European Union competition rules, but it said this wasn't the 
start of a formal investigation.

Once the EU's top antitrust authority receives more information from the 
companies concerned, it could decide to either open a formal investigation 
or drop the case.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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