EU rejects Microsoft appeal, upholds antitrust fine

The European Union’s Court of First Instance rejected Monday Microsoft’s appeal against an EU-wide antitrust order that could force the software giant to share vital programming codes with its rivals, while also imposing on Microsoft Corp. to sell its flagship Windows platform without the bundled Media Player.

The court in Luxembourg ruled against Microsoft in both cases and upheld a record fine of 490 mln euros (US$ 690 mln), saying the European Commission was right to conclude that Microsoft was guilty of monopoly abuse in order to yield its power in the personal computers market and to gain a superior position in the server software sector.

According to the European court decision, the EU regulators had clearly demonstrated that selling media software with Windows had damaged Microsoft’s rivals.

In a somewhat relief for the software giant, the court overturned the regulators’ decision to appoint a trustee to monitor Microsoft’s compliance with the ruling.

The EU’s Competition Commissioner Neelie Kroes urged Microsoft to “fully 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.

Market analysts and consumer watchers had said all along that Microsoft had caused damage to its ricvals by not releasing the codes for the software, obliging PC users around the world to buy the package or opt for free software, such as Linux.

“It was like selling shoes without the laces,” one IT expert had commented.