EU confirms record Microsoft fine

Microsoft has been hit with a €497m (£331m) fine and other penalties by the European Commission for the company's anti-competitive practices involving its Windows Media Player software.

The fine is just over one per cent of Microsoft's cash reserves.

The Commission's ruling states: "Microsoft Corporation broke European Competition law by leveraging its near-monopoly in the market for PC operating systems onto the markets for work group server and for media players."

The ruling states that, as "the illegal behaviour is still ongoing", it has ordered Microsoft to disclose to competitors within 120 days "the interfaces required for their products to be able to 'talk' with the ubiquitous Windows operating system".

The company is also required, within 90 days, to offer a version of Windows without Windows Media Player to PC manufacturers or when selling directly to end users. But it can continue to offer a version including the Media Player.

Microsoft will need to produce and maintain two versions of the current - and potentially future -versions of Windows.

Competition commissioner Mario Monti said in a statement: "Today's decision restores the conditions for fair competition in the markets concerned and establishes clear principles for the future conduct of a company with such a strong, dominant position."

Microsoft is expected to announce its intention to appeal the decision within hours.

See also:

MS UK chief named after eight months' wait

Resellers welcome appointment of 'channel-friendly' Alistair Baker  05 Apr 2004

Commission fails to level playing field

The European antitrust ruling will have little effect on Microsoft's market dominance, says Jaap Favier.  02 Apr 2004

EC slammed for 'draconian' Microsoft fine

US pressure group warns of 'negative global impact' following antitrust ruling  25 Mar 2004

Timeline: The investigation of Microsoft

vnunet.com highlights the key stages of the European Union's progress towards today's record fine levied on Microsoft  24 Mar 2004

Main offenders: Record EC antitrust fines

How Microsoft's fine compares with other antitrust penalties  24 Mar 2004

EU states approve record Microsoft fine

Heavy penalty and further anti-competition demands expected tomorrow  23 Mar 2004

Microsoft antitrust talks collapse

European Commission ruling expected next week following last-minute deadlock  18 Mar 2004

EU to decide Microsoft antitrust case

Moment of truth as European Commission nears decision  27 Jan 2004

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