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Press release: illegal state aid in ICT

by Iain Roberts last modified 2007-10-27 16:59

Open Schools Alliance PRESS RELEASE  [Government ICT Policy, Technology]
For Immediate Release

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Minister refuses to answer charge of providing illegal state aid in ICT debate
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Read the Debate....

London 10th October 2007 -  In a surprise move during yesterday's parliamentary adjournment debate on ICT procurement, Angela Eagle, Exchequer Secretary to the Treasury and Labour MP for Wallasey, refused to clarify whether the government's systematic preferencing of one software supplier's operating system as the standard for government software provision and web services was tantamount to illegal state aid.

John Pugh Lib Dem MP for Southport, challenged the governments stated position of neutrality and of supporting a 'level playing field' in the software systems it wishes to see used, by outlining a "damning" range of preferential treatment that he said was close to advertising and product placement.

In the debate John said: "The Driving Standards Agency driving theory CD-ROM can be used only on Windows computers. The Revenue website has limited functionality for the Firefox web browser...The Department for Work and Pensions online benefits system can be accessed only by those who have a Windows computer. Those who have Unix or Linux computers or who use Mac computers should simply not bother...the Government's chosen solutions ..  are close to being product placement."

John further highlighted the controversial BECTA  (British Educational Communications and Technology Agency) procurement frameworks as well as the BBC iPlayer which have been subject to fierce criticisan EU complaint over interoperability and a referral to the Office of Fair Trading.

He added "I am obliged by the Government...to use a Windows computer if I want to apply online for benefits. If the problem did not concern software and I was forced to buy a Vauxhall car to use the roads, it would be a simply intolerable situation. The fact that this issue concerns a new industry makes the point less obvious, but none the less equally damning."

"Fundamentally this debate is about neither Microsoft nor open source; it is about eradicating the suspicion and certainly the prospect—indeed, I believe it is the reality—of illegal state aid being given to any software enterprise through the use of public resources."

Ms. Eagle, who was repeatedly asked by John Pugh MP to refute the claim that the government was giving state aid by preferencing one operating system in its provision of web and software services continued to read from a prepared statement on open source, appearing to ignore the question before her.

Clearly wrong-footed in the debate Ms. Eagle, who seemed totally out of her depth on issues of anti-trust and competition, did not even appear to be aware that Microsoft had been fined over 600m euros for anti-trust violations by the EU last month.

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ENDS
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NOTES
- Full transcript of the 9th Oct adjournment debate on ICT procurement available here:
http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm071009/halltext/71009h0008.htm#column_46WH

- The Official DSA Complete Learner Driver Pack - Electronic Version CD-ROM and DVD:
http://www.tsoshop.co.uk/bookstore.asp?trackid=000177&FO=1207772&DI=589104

- HMRC guidelines for online serices
https://online.inlandrevenue.gov.uk/application?namespace=re&origin=faqMenu.jsp&event
=link.faq&id=content.managed

.eng.faq.employers.faq.faqcom040.question.faqcom040&faqService=common

- Department of Work and Pensions guidelines for disabled people and carers, child maintenance, pensions and retirement, claimants of income and incapacity benefit: http://www.dwp.gov.uk/eservice/need.asp

- BBC iPlayer complaint over preferencing operating system platforms with media players:
http://www.opensourceconsortium.org/content/view/65/55/

- BECTA EU complaint over interoperability: http://www.alphalearning.co.uk/ojeu.htm

- On September 17, 2007, EU Court of First Instance denied Microsoft's appeal versus an EU antitrust order to share communications code with rivals (interoperability) and sell a copy of Windows without Media Player. In upholding the $613 million fine, the court decided that European Commission did not err in finding Microsoft guilty of monopoly abuse.

• The Open Schools Alliance is a campaigning organisation supported by educationalists, technical experts and open source businesses. We are united by the common belief that the UK could enhance education, save taxpayers' money and strengthen its IT sector by treating Open Source Software fairly.

- For comment, quotes and interviews please contact:
osa-press@openschoolsalliance.org       
0044 (0) 7906 711635    
0044 (0) 870 0202 111
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