Financial Times FT.com

Brussels builds muscles with courtroom victories

By Peggy Hollinger

Published: October 23 2007 20:44 | Last updated: October 24 2007 08:18

The Brussels competition authorities have had a good week. First, Microsoft decided to surrender in its nine-year battle with the European Commission over its dominance of the software market. Then on Tuesday the Commission was handed victory in the fight to bring down Germany’s VW law.

The rule was introduced in 1960 to preserve the influence of VW’s public shareholder, the state of Lower Saxony, and also provided a block to unwanted takeovers. According to the European Court of First Instance, which last month also backed the Commission on Microsoft, the VW law limits the free movement of capital and so must be abolished.

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