THE RULING: Microsoft Corp. lost an appeal at the European Union's Court of First Instance to get a landmark 2004 antitrust ruling and record 497 million euro ($613 million) fine overturned.
WHAT IT MEANS: The EU court's dismissal of the appeal forces Microsoft to comply with the 2004 order by EU competition regulators. It must share code with rivals and sell copies of Windows without Media Player, a move the EU argues will give consumers more choice.
WHAT NEXT: Microsoft lawyers said they need to study the 248-page ruling before they decide on the next legal move. They have a right to appeal to the EU's highest court, a process that could take months if not years. In the meantime, Microsoft officials said they will aim to heal relations with the EU and admitted the company may need to do more to comply with EU demands.
At one point, I would have said that Microsoft should just pull out of markets that strong armed them. something like, "You don't like us here? Fine, we won't sell or support our product here." I figured that the jurisdiction would drop everything and beg Microsoft to return. Why? Their product was indispensible.
Well, not any more.
Vista has totally changed the playing field. If Microsoft was to pull out, the void would quickly be filled with either OS X (polished commercial product) or Linux (virtually expense free). Microsoft may not like it, but the world can do just fine without Windows.
What has Microsoft contributed to the Net? How about virus infected spam-bots all over the world? What a great contribution!
As much as I dislike Microsoft's products, this is outrageous.
Microsoft creates a product and offers it for sale. By what possible rationale does the EU have the right to tell Microsoft how to run its business? The EU didn't make Windows, Microsoft did, and only Microsoft has the right to decide what goes in it.
The ruling is even more absurd in that its primary demand isn't even something that consumers want. Windows Media files are fairly ubiquitous, and while it may not be the first choice of media players, the ability to play Windows Media files is a basic function of a Windows PC.
It also said regulators had clearly demonstrated that selling media software with Windows had damaged rivals.
There are really only two rivals to Windows Media: Apple's QuickTime, and Real. Virtually all music and videos sold online (viz., iTunes sales) are in QuickTime formats. Clearly a rival can succeed. That leaves Real. They used to be quite ubiquitous too, but now I rarely stumble across any of their stuff. If I do, I just ignore it, because I have no interest in installing their player. Perhaps Microsoft's "bundling" did hurt Real. I don't really care, though. RealPlayer is awful, and the format deserves to die. Moreover, Microsoft has the right to bundle its products, even if that totally kills a competitor.
I think Microsoft should give the EU a big F.U. and refuse to pay. Force the EU to physically seize the money at gunpoint. If the regulators want to use the coercive power of government to attack a company, let that power be seen in its cruel, naked horror.
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