EU court keeps penalties

The European Union Court of First Instance this morning denied Microsoft's request to suspend the landmark EU antitrust ruling pending the outcome of the company's appeal. The court (download pdf of news release) said its president, Bo Vesterdorf, found that Microsoft "has not shown that it might suffer serious and irreparable damage as a result of implementation of the contested decision."

See this page on the court's Web site for a link to the full text of the ruling.

Microsoft's initial statement says, in part, "While the Court did not find immediate irreparable harm from the Commission’s proposed remedies, the Court recognized that some of our arguments on the merits of the case are well-founded and may ultimately carry the day when the substantive issues are resolved in the full appeal."

The company's statement reiterates its desire to reach a settlement with the European Commission but says Microsoft is prepared to comply with the court order. That would mean, among other things, selling a version of Windows in Europe without Windows Media Player.

See coverage by the Associated Press, Reuters, and CNet News.com.

Update, 8:30 a.m. Here's a transcript of Microsoft's European news conference call, and a statement from the Computer & Communications Industry Association. See also the statement below from RealNetworks:

"The Court’s denial of Microsoft’s attempt to continue the unlawful conduct condemned by the European Commission is a victory for the Commission and consumers. By allowing the Commission’s remedy to take effect, the Court has taken an important step toward promoting robust competition in digital media, fostering technological innovation and giving consumers real choice. RealNetworks will continue to cooperate with the Commission’s efforts to stop Microsoft’s unlawful attempt to control how music, movies and other digital content will be delivered in the future.

"RealNetworks will vigorously pursue our case in the U.S. to obtain injunctive relief against Microsoft that will lead to similar freedom of choice for consumers everywhere. In the meantime, we will continue to compete against Microsoft’s products by innovating, diversifying our business and giving consumers and businesses genuine choices in digital media."

Update, 11:20 a.m. See the video of the European Commission press conference on the decision via this page. (Find and click on the 12h17'35' label on the left of the screen.)

Posted by Todd Bishop at December 22, 2004 03:54 AM