[NYTr] Microsft Appeal Dismissed; EU Court Upholds $613M Fine

[All the News That Doesn't Fit]

AP - Sep 17, 2007
http://hosted.ap.org/dynamic/stories/E/EU_MICROSOFT?SITE=NYBUE&SECTION=HOME&TEMPLATE=DEFAULT

EU Court Upholds Microsoft's $613M Fine

By MATT MOORE
AP Business Writer

LUXEMBOURG (AP) -- A European Union court on Monday dismissed
Microsoft Corp.'s appeal against an EU antitrust order that ordered it
to share communications code with rivals and sell a copy of Windows
without Media Player.

It also upheld a $613 million fine - the largest ever levied by EU
regulators.

The EU Court of First Instance ruled against Microsoft on both parts of
the case, saying the European Commission was correct in concluding that
Microsoft was guilty of monopoly abuse in trying to use its power over
desktop computers to muscle into server software.

It also said regulators had clearly demonstrated that selling media
software with Windows had damaged rivals.

"The court observes that it is beyond dispute that in consequence of
the tying consumers are unable to acquire the Windows operating system
without simultaneously acquiring Windows Media Player," it said.

"In that regard, the court considers that neither the fact that
Microsoft does not charge a separate price for Windows Media Player nor
the fact that consumers are not obliged to use that Media Player is
irrelevant."

But it did overturn regulators' decision to appoint a monitoring
trustee to watch how Microsoft had complied with the ruling, saying the
Commission had exceeded its powers by ordering Microsoft to pay for all
the costs of the trustee.

Microsoft can appeal the decision to the EU's highest court, the
European Court of Justice, within two months.

"I don't want to talk about what will come next," said Microsoft lawyer
Brad Smith in answer to questions about the possibility of an appeal.
"We need to read the ruling before we make any decision."

European Union Competition Commissioner Neelie Kroes urged Microsoft to
move now to "comply fully" with the 2004 antitrust ruling.

"The court has upheld a landmark Commission decision to give consumers
more choice in software markets," Kroes said in a statement. "Microsoft
must now comply fully with its legal obligations to desist from
engaging in anticompetitive conduct. The Commission will do its utmost
to ensure that Microsoft complies swiftly."

The European Committee for Interoperable Systems called the ruling a
good result.

"It's a very good day, for it signals that there will be fair
competition for the sector," said Maurits Dolmans, a lawyer for the
group.

In its 248-page ruling, the court upheld both the Commission's argument
and its order for Microsoft to hand over information on server
protocols to rivals. Microsoft had claimed these were protected by
patents and the Commission was forcing it to give away valuable
intellectual property at little or no cost.

The court confirmed "that the necessary degree of interoperability
required by the Commission is well founded and that there is no
inconsistency between that degree of interoperability and the remedy
imposed by the Commission.

On the Net:
Court Ruling: http://tinyurl.com/3x2pze

© 2007 The Associated Press.