EU Competition Commission slaps record fine on Microsoft

Microsoft is to seek a legal review of the decision by the EU Competition Commission to fine the computer software company 497 million euro (£331 million/US$613 million) over abuse of its market leading position.

Microsoft have also been ordered to reveal details of its Windows software which operates around nine out of ten of the world's personal computers.

Despite the adverse decision, Microsoft said it would continue to "work closely with the Commission and European governments on security, privacy and other issues".

But Microsoft stated that its proposals to settle the European Commission investigation would have provided "more choices for European consumers and more opportunity for software companies" than the official decision announced by the European Commission.

The Chief Executive Officer of Microsoft, Steve Ballmer, said: "We worked hard to reach an agreement that would address the European Commission's concerns and still allow us to innovate and improve our products for consumers.

"We respect the Commission's authority, but we believe that our settlement offer from last week would have offered far more choices and benefits to consumers."

According to Brad Smith, senior vice president and general counsel of Microsoft, the company will seek legal review of the Commission's decision in the Court of First Instance in Luxembourg.

However, European Competition Commissioner Mario Monti has declared that he is confident that the decision would stand on appeal.

The EU Commissioner has ordered Microsoft to reveal details of the Windows operating system that would make it easier for companies to code Windows compatible products.

Though Microsoft may continue to bundle Windows Media Player with Windows OS, the company will be required to comply with the decision that calls for a version of Windows to be supplied without its Media Player software within three months.

The EU Competition Commissioner has said that the decision would ensure that dominant companies did not harm consumers.

A special trustee will be appointed by the EU Commission to ensure that Microsoft complies with the ruling that follows five years of legal wrangling and the breakdown of talks last week.

(SP)