EU Launches Antitrust Probe Against Blu-ray And HD DVD

Mike Howes (Winga) The European Commission believes that the companies that are backing each format may have licensing terms that breach European competition rules.

July 31, 2006 1:25 AM ET in News,

The European Commission believes that the companies that are backing each format may have licensing terms that breach European competition rules.

Just when we think that Blu-ray and HD DVD will start showing up in mass production, the two formats enter into more trouble. Both Toshiba and Sony received letters from the European Commission earlier this month.

According to a European Commission representative, “we sent a letter earlier this month to the makers of HD DVD and Blu-ray to request information about licensing.” Toshiba did not respond to inquiries but Sony confirmed that it did receive a letter from the European Commission.

The European Commission is still waiting for all replies to come back. It will then decide whether or not to pursue a full anti-trust probe.

With all the issues Sony has faced thus far, lets hope this is not going to add to their woes.

Source: Daily Tech

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5 Comments:

  1. Thunder Thighs
    31 Jul '06, 9:46 am

    This would be another devastating blow to the PS3 and Sony in general. The PS3 has been criticized for its price, loss of rumble feature, copying Nintendo and Microsoft (using the tilt feature and incorporating a center button to pull up a main menu on screen), and overconfidence in Blu-Ray. If the Blu-Ray technology becomes a big issue, Sony will have a difficult time catching up to Microsoft and possibly Nintendo. They need to solve this problem and advertise their products better. The same thing happened when VHS and Beta tapes came out. Sony had a great idea with the Beta tapes, but never supported it enough. People invested in VHS and Beta never took off. If history repeats itself, Toshiba may come out as the leader with the HD DVD.

  2. muddocktor
    8 Aug '06, 10:56 pm
    Quoting Thunder Thighs

    This would be another devastating blow to the PS3 and Sony in general. The PS3 has been criticized for its price, loss of rumble feature, copying Nintendo and Microsoft (using the tilt feature and incorporating a center button to pull up a main menu on screen), and overconfidence in Blu-Ray. If the Blu-Ray technology becomes a big issue, Sony will have a difficult time catching up to Microsoft and possibly Nintendo. They need to solve this problem and advertise their products better. The same thing happened when VHS and Beta tapes came out. Sony had a great idea with the Beta tapes, but never supported it enough. People invested in VHS and Beta never took off. If history repeats itself, Toshiba may come out as the leader with the HD DVD.

    Actually, the main reason that Betamax ended up sucking hind tit was due to Sony's typical attitude that still permeates the company to this day. They wanted ultra high licensing costs for competitors to be able to manufacture tape units to use Betamax format. Matsushita (i think it was) wasn't nearly as greedy with the VHS format, so that's the way industry went and then Sony ended up with nothing.

  3. madmat
    9 Aug '06, 6:13 am
    Quoting muddocktor

    Actually, the main reason that Betamax ended up sucking hind tit was due to Sony's typical attitude that still permeates the company to this day. They wanted ultra high licensing costs for competitors to be able to manufacture tape units to use Betamax format. Matsushita (i think it was) wasn't nearly as greedy with the VHS format, so that's the way industry went and then Sony ended up with nothing.

    Actually it was JVC...but you're right on their MO.

  4. Thunder Thighs
    9 Aug '06, 9:21 am

    Ahh, i didnt know that . That was before my time. It just seems like Sony is taking another risk with this new technology. Do you think they will continue with this philosophy and force competitors to pay more for using the Blu-Ray format?

  5. muddocktor
    10 Aug '06, 9:49 am
    Quoting madmat

    Actually it was JVC...but you're right on their MO.

    Thanks Matt, I couldn't remember exactly when I posted that. Now that you mention it, I do remember buying my first tape machine and it was a JVC, not Panasonic. I payed like $1100 for it too, back around 1980 or 1981.

    Quoting Thunder Thighs

    Ahh, i didnt know that . That was before my time. It just seems like Sony is taking another risk with this new technology. Do you think they will continue with this philosophy and force competitors to pay more for using the Blu-Ray format?

    If they do force competitors to pay more for using Blu-Ray, you can bank on it that they will be giving HD DVD another serious advantage, just like VHS vs Betamax.

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