Updated: July 12, 2020 (December 27, 2004)
Analyst ReportEU Refuses to Stay Penalties
An appeals court has refused Microsoft’s request to stay penalties levied by the European Commission (EC), and the company says it will comply with the order while considering an appeal. Specifically, Microsoft will create a program to license certain protocols used by Windows clients and servers to communicate with one another and begin offering a version of Windows without the Windows Media Player to OEMs in Europe. However, this decision is only the first step in a long appeals process, and Microsoft continues to challenge the EC’s original ruling in court.
The Scope of the Judgment
On Mar. 24, 2004, the ECthe administrative body that handles antitrust law for the European Union (EU)ruled that Microsoft had abused its near-monopoly in desktop OSs to compete unfairly in the markets for server OSs and digital media. At that time, the EC ordered Microsoft to do the following:
- Pay a fine of 497.2 million (more than US$600 million)
- Within 120 days, begin licensing certain protocols
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