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EU court giving Microsoft verdict Microsoft loses anti-trust appeal
(10 minutes later)
The European Court of First Instance has begun delivering its verdict in the EU's long-running competition dispute with Microsoft. The European Court of First Instance has dismissed Microsoft's appeal in its long-running competition dispute with the European Commission.
The software giant is challenging an EU ruling that it abused its dominant market position. The court upheld the ruling that Microsoft had abused its dominant market position.
A probe concluded in 2004 that Microsoft was guilty of freezing out rivals in server software and products such as media players.A probe concluded in 2004 that Microsoft was guilty of freezing out rivals in server software and products such as media players.
It was ordered to change its business and fined 497m euros (£343m; $690m).It was ordered to change its business and fined 497m euros (£343m; $690m).
Microsoft has now been ordered to pay 80% of the Commission's legal costs, while the Commission has to carry a specific part of Microsoft's costs.
The court threw out just one small part of the European Commission's ruling, which had established independent monitoring trustee to supervise Microsoft's behaviour.
The 2004 ruling ordered Microsoft to ensure its products could operate with other computer systems by sharing information with rival software companies.The 2004 ruling ordered Microsoft to ensure its products could operate with other computer systems by sharing information with rival software companies.
It was also ordered to make a versions of its Windows operating system available without software such as Media Player.It was also ordered to make a versions of its Windows operating system available without software such as Media Player.
Last year, Microsoft was told to pay daily fines adding up to 280.5 million euros over a six-month period, after it failed to adhere to the 2004 decision.Last year, Microsoft was told to pay daily fines adding up to 280.5 million euros over a six-month period, after it failed to adhere to the 2004 decision.
Threat to model
Microsoft is challenging the EU ruling, and also argues that its fine should be rescinded.
Analysts say the landmark ruling, due from Europe's Court of First Instance, will determine how companies which have dominance in their markets should behave towards rivals.
The Commission says that, by making its own servers interoperate with desktop PCs better than those of its rivals, Microsoft drove others from the marketplace.
If the court upholds the EU's decision, analysts said the Commission may take further cases against Microsoft and perhaps even other technology groups which hold a dominant position in their markets.
It could also damage Microsoft's future business model.
The US firm said that such a decision would be a blow for innovative companies.
"While there are some companies who will use the press and government processes to advance their interests and invoke their view of competition law, I think we are working quite well with most firms," said Dave Heiner, Microsoft deputy general counsel who leads the company's compliance efforts.
However if the court finds in Microsoft's favour, the Commission will face having to repay fines - as well as a severe blow to its reputation.
It is also possible that the court will partly support the 2004 ruling.