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Home / Technology

Microsoft looking at fine vista

By Matt Greenop
6 Jun, 2007 12:36 AM2 mins to read

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Bundling software like Windows Media Player raised the ire of the European Commission.

Bundling software like Windows Media Player raised the ire of the European Commission.

KEY POINTS:

It may still be basking in the glory of its fresh Vista operating system, but the future could be expensive for Microsoft.

The European Union's second highest court is expected to rule on September 17 whether the European Commission rightly found the company violated antitrust laws, ZDNet
reported today.

The Court of First Instance will rule the day before its President Bo Vesterdort, who is presiding over the landmark case, retires.

In March 2004, the European Commission imposed a record 497 million-euro fine ($895 million) fine on the software giant, and ordered it to change its business practices.

Its ruling maintained that Microsoft was did not give makers of small business servers the information needed to compete fairly with its own products. The Commission also noted that bundling Windows Media Player made competition difficult for rival products like Real Player. The business model of bundling software into Windows to stifle competition helped maintain Microsoft's 95 per cent dominance of the market, it said.

Microsoft's response was that it is in the business of innovation and is therefore entitled to add value wherever it wants to.

A 13-judge Grand Chamber of the Court of First Instance conducted hearings on the matter last year before handing down a further 280.5 million euro ($550 million) fine for failing to comply with the original decision.

The expected ruling in September will clarify whether or not the Commission can continue to pursue the case, or whether it must allow Microsoft to continue its business practises in Europe unimpeded.

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