Microsoft Brazil Statement on Board of the Administrative Council for Economic Defense (CADE) Decision

REDMOND, Wash. Aug. 25, 2004 — Regarding today’s decision by the Board of the Administrative Council for Economic Defense (CADE), Microsoft Brazil would like to declare:

Microsoft is totally committed to conducting its business in a respectful manner and in accordance with the laws and regulations in each of the countries it operates in. The company makes every effort to work with partners and regulatory agencies to guarantee meeting all of its legal obligations.

Today the Board of the Administrative Council for Economic Defense (CADE) came out against the licensing commercialization model the company had in the capital for Brazil – Brasilia. Microsoft in Brazil used to appoint regional Large Account Resellers based on specific criteria of technical, commercial and financial capabilities of its partners. In 1998, just one reseller had the capabilities to be named LAR in Brasilia and another reseller filed a complaint against this practice. This model was modified by Microsoft itself over four years ago with an appointment of a new Large Account Reseller for Brasilia and in 2002 with the end of the regionalization of resellers. The company also announces that, by its understanding, the previous commercial practice was in accordance with Brazilian legislation.

The company has made every possible effort to clarify the public body’s concerns and will continue to work to find a positive and satisfactory manner of resolving this question. The Brazilian government has recently cleared Microsoft under the accusation of preventing competition in the software sector in the same Economic Defense Administration Board (CADE). The decision is available at:

Microsoft, which trades the personal finance software Money, was accused by the Brazilian software house Paiva Piovesan of impeding the competitiveness of the Finance program, produced in this country. The CADE councilors took the decision unanimously in favor of Microsoft on 19th May, based on the opinion of the case reporter, who recommended the filing of the process.

“It is Microsoft’s priority to conduct its business in a respectful manner and in agreement with the laws and regulations of the countries it operates in. We have acted responsibly while seeking to build the best products and services we can to meet the needs of our customers”, declared Rinaldo Zangirolami, Senior Attorney of Microsoft Brasil. “We have collaborated over the past six years with the Brazilian authorities and we will continue to work closely with the antitrust authorities in Brazil.

Microsoft is committed to conducting its business strategy with transparency around the world. With this commitment, the company has worked with regulators in America, Europe and Asia to address questions and to ensure its business practices are in full compliance with all laws and regulations. In every case, Microsoft works closely to the justice and acts responsibly, listening to authorities, customers and partners.

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