Microsoft bids to overturn record EU fine

Posted on 7 Jun 2004 at 12:13

Microsoft is to go to the European Courts this week in a bid to overturn the record fine and conditions imposed by the EU after it found that the company had engaged in anti-competitive practices.

Following the decision Microsoft was fined a record half a billion euros and told to open the Windows APIs to rival server manufacturers such as Sun Microsystems and remove Media Player from copies of Windows XP shipped in Europe.

In a statement a Microsoft spokesman said 'As we indicated in March, when the European Union issued its decision, Microsoft will appeal the ruling. We intend to file our appeal with the Court of First Instance this week.'

Whilst the ruling to open the APIs to the likes of Sun will be irksome and the fine not inconsiderable, Microsoft will be wanting to overturn the ruling forbidding it to bundle Media Player. Microsoft is particularly concerned by this ruling as it feels it limits its freedom to innovate.

Many industry watchers point out that Microsoft has identified legal downloading of music and video becoming a boom industry over the next few years. As such, the company has developed the forthcoming Media Player 10 to be able to download media files from the Internet onto a wide range of devices whilst at the same time, offer copy protection to the copyright owners and easy methods of subscription.

For Microsoft to gain control of another technology choke point, as it has done with the Internet browser, Media Player 10 has to become established as a standard among users. Only then can it become the de facto gatekeeper of music and movie downloads and its method of DRM widely adopted by a suspicious media industry.

However, if the European Commission ruling stands, the weapon adopted by Microsoft in the browser wars against Netscape - bundle the browser for free with the operating system - will not be one available to it in the media war with Real Networks and Apple.

Author: Steve Malone