Microsoft Suffers A Blow And Pays A Big Price

Written on
Sep 17, 2007 
Sarah Novotny  |

legal13.jpgToday, Microsoft reportedly lost an antitrust case after the European Union court agreed with a prior ruling that the software giant abused its position in the market to squash any potential rivals.

The court upheld the decision that was made in 2004 against the company and will fine them $689.9 million. A lawyer for the company said that the ruling will affect how they market future products; while Neelie Kroes, the EU Competition Commissioner stated in Reuters that the firm should see a “significant drop” in their current 95% market share.

Kroes said in a news conference that, “The court has confirmed that Microsoft can no longer prevent the market from functioning properly and consumers are entitled to benefit from choice and more innovative product.”

The case focused primarily on the applications that were continually released by Microsoft to only operate with Windows. British competition lawyer Chris Bright also said to Reuters, “It’s clearly a major defeat for Microsoft. There is no doubt it will spur the Commission on to regulate Microsoft much more significantly.”

Microsoft is declared by the ruling to give coding or any other pertinent information to their rivals in order to allow Microsoft product to run with other servers than Windows.

Brad Smith, Microsoft General Counsel told the conference that the firm will fully follow their new sanctions and that the company has not decided whether or not to appeal.

Sarah Novotny is a contributing editor at Adotas. Sarah grew up in San Jose, California. Her educational and professional career have taken her to both Los Angeles and New York City where she received a B.F.A. from NYU. As a writer, Sarah has free-lanced for various publications focusing primarily on traditional advertising and media reviews. When not writing and editing for Adotas, Sarah is continuing her acting career in various theatrical and film/television productions.

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