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EU Court Upholds Microsoft's 613M Fine
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EU Court Upholds Microsoft's 613M Fine
September 17, 2007
European Union's Second-Highest Court Dismisses Microsoft Appeal,
Upholds $613 Million Fine 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.
Agence France-Presse
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