In a landmark decision, the European Union's second-highest court Monday upheld a March 2004 antitrust decisions against software giant Microsoft, including a €497 million ($689 million) fine. The EU Court of First Instance ruled that by bundling Windows Media Player with the Windows operating system, Microsoft is using its desktop presence to muscle its way into other markets. It also said Microsoft abuses its dominance by not making its products compatible with those of rivals, and by refusing to supply competitors with interoperability 
information. Microsoft has said it has begun compiling open protocols, which it will make available to rivals, and that it will continue to do so regardless of the court's ruling. The European Committee for Interoperable Systems -- which represents Sun, Oracle, and other Microsoft rivals -- has said it is skeptical Microsoft would continue a move towards greater compatibility had it received a favorable ruling. Microsoft said in an August SEC filing the order would enable competitors to "better mimic the functionality of Microsoft's own products," and says its rivals don't need access to many of its protocols. It also said the EU has no right to force it to make its products compatible with those of rivals. European regulators are now considering a new probe to examine whether Microsoft has likewise abused its dominance in marketing Word and Excel. The court gave Microsoft 120 days to issue interoperability information; 90 days to unbundle Media Player; and 30 days to submit a proposal as to how the court can monitor its compliance. Microsoft has allocated funds for the fine, and is already marketing a Media Player free version of Windows in Europe. Microsoft can still appeal the decision at the EU's highest court, the European Court of Justice. Other U.S. companies under EU antitrust scrutiny include Intel (accused of illegal rebates to thwart AMD competition) and Rambus (accused of illegally obtaining chip patents).
Sources: Court judgement, AP, MarketWatch, Bloomberg
Commentary: In Euros We Trust • Why The EU's Fines Against Microsoft Aren't So Significant
Stocks/ETFs to watch: MSFT, INTC, RMBS, ORCL, JAVA
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