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COURT REJECTS MICROSOFT’S REQUEST TO SUSPEND SANCTIONS
MICROSOFT WILL COMPLY WHILE MOVING FORWARD WITH APPEAL
Sanctions Will Be Effective For the Course of the Appeal
Earlier today, Judge Bo Vesterdorf, president of the European Court of First Instance (CFI) in Luxembourg, denied Microsoft’s request to suspend sanctions while the company appeals the March 2004 ruling made by European Commission (EC) antitrust regulators. Given that the CFI grants fewer than 20 percent of such requests, the ruling was not unexpected.
While today’s ruling denied Microsoft’s request, the CFI acknowledged that some of Microsoft’s arguments against the merits of the EC’s case are well-founded and may ultimately carry the day when the substantive issues are resolved in the full appeal. In assessing today’s order, Microsoft’s general counsel Brad Smith noted that "There is ample room for us to continue to press forward with cause for optimism."
Under the order, Microsoft must comply with the EC’s order to license certain communications protocols and to remove Media Player code from Windows, obliging the company to release a version of its flagship operating system that does not contain certain media functionalities. Microsoft believes that these remedies will harm many users of the Windows operating systems as well as thousands of companies that have built their businesses on the Windows platform. The order to remove code from Windows also undermines technology integration, which has been the backbone of the IT revolution for the past three decades.
Microsoft is still deciding on its next steps, but will comply fully with the court order. "We need to focus on doing an excellent job with complying with today’s decision," said Smith.
Read more...
Case Background
Despite months of negotiations, in March 2004, the EC announced its decision against Microsoft after a five-year antitrust investigation. The EC levied a fine of €497 million (approximately $613 million at the time of the decision), mandated compulsory licensing of Microsoft intellectual property, and ordered Microsoft to place in the European marketplace a version of Windows from which Media Player functionality has been removed. Microsoft believes that these sanctions are not in the interests of European developers and consumers.
Because of the potential consequences of the sanctions on consumers and the industry, Microsoft appealed the EC’s decision to the CFI and requested a stay of the sanctions. Though Judge Vesterdorf denied that request, the appeals process will move forward and could last several years. Microsoft will continue to work with the EC to discuss ways in which we can resolve these issues without compromising our industry’s ability to bring innovations to European consumers. The company also remains committed to legal compliance, and to working amicably with our customers, partners and governments worldwide.
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www.freetoinnovate.com
For information on Microsoft legal issues, as well as technology news, policy updates and more, visit the Freedom to Innovate Network at www.microsoft.com/freedomtoinnovate/.
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