Microsoft News Tracker

Charles Forelle reported on Friday for The Wall Street Journal that the European Union Competition Commission is investigating the odd circumstances surrounding Microsoft’s unsuccessful effort to get the Office Open XML (OOXML) document format approved as an ISO/IEC standard.

European regulators are examining whether Microsoft Corp. violated antitrust laws during a struggle last year to ratify its Office software file format as an international standard.

European Union antitrust officials have asked Microsoft for information about its activities in the standards-setting process — an early step in an investigation — and are stepping up scrutiny of the issue, according to people familiar with the matter.
…
In the months and weeks leading up to the vote, Microsoft resellers and other allies joined standards bodies en masse — helping swell the Italian group, for instance, from a half-dozen members to 85. Opponents said Microsoft stacked committees. People familiar with the matter say EU regulators are now questioning whether Microsoft’s actions were illegal.
…
Among the potential legal theories being examined by the EU is whether alleged attempts by Microsoft to pressure countries to ratify the Office standard amounted to an undue stifling of competition.

We mentioned some of the hanky panky at the time, but never imagined that it might be considered fodder for the antitrust watchdogs. However, it dovetails neatly with the latest EU Microsoft investigations (which include OOXML) and nothing is beyond the purview of a modern bureaucrat.

Matthew Karnitschnig at The Wall Street Journal is reporting that the Yahoo board of directors will formally reject Microsoft’s acquisition offer on Monday:

Yahoo Inc.’s board plans to reject Microsoft Corp.’s unsolicited $44.6 billion offer to acquire the Web giant, a person familiar with the situation says.

After a series of meetings over the past week, Yahoo’s board determined that the $31 per share offer “massively undervalues” Yahoo, the person said. It also doesn’t account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft Monday, spelling out its position.

Yahoo’s board believes that Microsoft’s is trying to take advantage of the recent weakness in the company’s share price to “steal” the company. The decision to reject the offer signals that Yahoo’s board is digging in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said.

Peter Kafka suggests that this is merely an argument for more money with the obvious flaw that no one has stepped forward to value Yahoo at higher than $31 per share. In fact, the Microsoft offer isn’t worth $31 any more since its share price has sunk on investor unease with the merger. Theories abound on the next step, but Henry Blodget’s scenario looks as good as any.

Update February 11, 2008: Rumor confirmed - Yahoo! Board of Directors Says Microsoft’s Proposal Substantially Undervalues Yahoo!