Microsoft suffers decisive EU antitrust defeat
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Microsoft suffered a decisive antitrust defeat on Monday when a European Union court upheld a landmark ruling that the world's largest software maker had abused its dominant market position to crush rivals.
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Microsoft Corp. fought yesterday for a suspension of a landmark European Union antitrust ruling pending its appeal, arguing that being forced to share its closely guarded software codes with rivals now would do it irreversible damage.
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A European court today upheld a record $689 million antitrust fine against Microsoft, another in a string of defeats for the company's business practices and one which narrows the options in its decade-long battle with continental regulators.
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Microsoft suffered a humiliating legal defeat Monday when it lost a court appealÂ to overturn the European Commission's 2004 antitrust ruling against it.
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European Court rejects Microsoft's appeal in historic case. Court sides with European Commission on three significant areas.
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Microsoft has dropped two outstanding appeals of European antitrust rulings, following the deal struck with the European Commission at the beginning of this week, the company said in a statement Wednesday.Last year, Microsoft appealed the &#8364;280.5 million fine it incurred for failing to provide interoperability protocols to rivals, as required in the landmark 2004 European Commission antitrust ruling. The appeal was filed with the Court of First Instance (CFI).It also appealed against the Commission&#39;s demands that it make the protocols available to open-source software developers.However, in light of&#160;the agreement reached between Microsoft CEO Steve Ballmer and Competition Commissioner Neelie Kroes&#160;on Monday, these appeals became redundant.Less than a month after suffering&#160;a crushing defeat in its original appeal of the 2004 ruling, Microsoft said Monday it would finally comply with that ruling. All the required interoperability protocols would be made available to the open-source community and the price for them would be slashed, Microsoft said.The two outstanding appeals to the CFI were no longer necessary, said Erich Andersen, European General Counsel for Microsoft.&quot;We believe it&#39;s important at this stage to focus all of our energies on complying with our legal obligations and strengthening our constructive relationship with the European Commission,&quot; he said in the statement.The Commission welcomed the withdrawal of the appeals, spokesman Jonathan Todd said.The only loose end remaining in the nine-year long antitrust battle between the world&#39;s biggest software maker and Europe&#39;s top competition authority is the calculation of fines still to be paid for Microsoft&#39;s three and a half years of non-compliance.The &#8364;280.5 million fine imposed in July last year was the sum of daily fines of &#8364;2 million for not honoring the ruling to that date. When that fine was announced, Kroes said the Commission would increase the daily fine to &#8364;3 million.Microsoft was officially deemed in compliance with the 2004 ruling on Monday, over 14 months after the last fine was imposed. A rough calculation would put the new fine at close to &#8364;1 billion. When added to the &#8364;280.5 million fine imposed last year and the original &#8364;497 million fine imposed in 2004 the total of antitrust fines in the case is about &#8364;1.8 billion.The Commission will announce the final tally toward the end of this year, Todd said.
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The European Union's second-highest court affirmed the EU's nine-year pursuit of Microsoft Corp. , rejecting the software maker's appeal and strengthening the bloc's hand as it pushes ahead with cases against other major technology companies.
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The European Union's second-highest 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.
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A European Union court upheld a  landmark 2004 European Commission antitrust decision against  Microsoft  on Monday in a crucial victory for the  European competition regulator over the U.S. software giant.
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(InfoWorld) - Microsoft suffered a humiliating legal defeat Monday when it lost a court appealÂ to overturn the European Commission's 2004 antitrust ruling against it. The decision took most observers by surprise. The Court of First Instance, Europe's second highest court based in Luxembourg, sided squarely with Europe's top antitrust regulator on the two central issues in the case. Most commentators expected a mixed verdict. While the details of the lengthy court decision are still being examined in their minutiae, some consequences are already clear: The ruling pulls a legal rug from under Microsoft's strategy of bundling software onto its Windows operating system, providing a powerful legal reference point for any future antitrust litigation against the company, and it strengthens the Commission's authority, especially when dealing with antitrust abuse in the fast-moving information technology industry. The Commission was right to rule against Microsoft's strategy of bundling its Media Player application into the Windows operating system, the court concluded, after three years deliberation. Similarly, Microsoft acted illegally by refusing to share the required interoperability information needed by rivals to build server operating systems that work smoothly with Windows, the court said. Microsoft's most senior lawyer, Brad Smith said the court decision was "disappointing." He hasn't decided whether to appeal it to the top court, the Court of Justice. If Microsoft does this, it can only dispute points of law, not facts established in Monday's ruling. Smith said Monday's court ruling has important implications for Microsoft's strategy of bundling together a range of applications with the Windows operating system. This strategy has proved effective in the past. Microsoft eclipsed Netscape in the mid 1990s when it bundled in its Internet Explorer application into the operating system. And RealPlayer dominated the market for streaming media applications until Microsoft started bundling its Media Player into Windows in 1999. The Commission initially hoped to save RealPlayer from Netscape's fate by ordering Microsoft in 2004 to sell a second unbundled version of Windows, but it was too late. The market had tipped irreversibly in favor of Microsoft even before the 2004 ruling. The Commission's remedy to restore competition to the streaming media software market in 2004 was to order Microsoft to sell a second version, later dubbed Windows N, with Media Player stripped out. But the remedy has had no impact on the market. Nevertheless, winning the bundling argument in court was the most important victory of the day for the Commission, and for other companies that believe they suffered from Microsoft's unfair bundling strategy, according to Commission officials and lawyers following the case. "This is an important precedent, not just for this particular product on this particular market," said Competition commissioner Neelie Kroes at a press conference Monday. There isn't a queue of complainants lined up, she said, but she added that "they are welcome." Thomas Vinje, legal counsel for the European Committee for Interoperable Systems, (ECIS) a Commission ally in the case, said the Commission's authority to regulate competition in the IT industry has been strengthened by the court ruling. "It has strengthened their hand," he said, adding that he will encourage the Commission to move swiftly ahead with the antitrust complaint ECIS filed to the European regulator two years ago. However, he dismissed claims made during the day that the ruling would be a threat for all successful companies. "The Microsoft case is very rare in that it concerns a super-dominant company," he said. "The Commission may be emboldened by the endorsement of the court to take action against other companies in the IT industry -- There may be issues to be addressed concerningÂ Google's dominance of search, or with its plans to take over DoubleClick, but they bear little resemblance to the specific issues in the Microsoft case. The only real implications from the Microsoft case are for Microsoft itself," he added.
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A top European court on Monday handed Microsoft a surprise defeat in its epic antitrust battles, backing the European Commission&#39;s 2004 record fine of 497 million euros (690 million dollars) on the software giant.
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THE RULING: Microsoft Corp. lost an appeal at the European Union's Court of First Instance to get a landmark 2004 antitrust ruling and record 497 million euro ($613 million) fine overturned.
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Computer giant Microsoft has lost its legal appeal to delay a fine and anti-competitive penalties set by the European Commission, Reuters reports.
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Microsoft lost its antitrust appeal.  Will this change anything?
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Loses appeal but can ditch trustee oversight Microsoft has lost its appeal against European Commission charges of anti-competitive behaviour.â¦
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Microsoft lost on Monday a landmark EU antitrust case at Europe&#39;s second-highest court, which upheld a record 497-million-euro (690-million-dollar) fine imposed by the European Commission in 2004.
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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.