Today's European court decision, largely rejecting Microsoft's antitrust appeal, confirms that the company "can no longer prevent the market from functioning properly," European Competition Commissioner Neelie Kroes said at a news conference in Brussels, Belgium, this morning. She said the court decision confirms the commission's view that "consumers are suffering at the hands of Microsoft."

Access video of the news conference by scrolling down on this page and clicking on the 12:17 time stamp. Among other things, she addressed the part of the March 2004 antitrust decision, upheld by the court, that requires Microsoft to share technical information with rivals in the computer server market:

"If competitors are unable to make their products talk to or work properly with dominant companies' products, they are prevented from bringing new, innovative products on to the market, and customers are locked into the products of the existing provider. Consumers want interoperable products, and companies that want to meet consumers' demands should be able to provide them.

"In this case, the court has confirmed that Microsoft has to make available indispensable interoperability information on reasonable and non-discriminatory terms to allow competitors to make work group server products that work properly and on an equal footing with Microsoft products, and consumers have a right to the increased choice and innovation and decreased prices that competition brings. Competition in this market requires interoperability and companies should not practice interoperability only when they are forced to compete in a particular market because that increases the chances of winning market share."

Kroes also discussed the part of the ruling that upheld the commission's decision ordering the company to sell a version of Windows without Windows Media Player.

"In confirming the bundling part of the commission's decision, the court has again confirmed the importance of consumer choice. Microsoft cannot abuse its Windows monopoly to exclude competitors in other markets. Microsoft can improve its products, but the court confirmed that there was no technical benefit to building its media player into its operating system in the way that it did. Consumers did not benefit. Consumers only paid the price through reduced choice and less innovation on the market as a whole.

"This is an important precedent, ladies and gentlemen, not just for this particular product on this particular market. The court ruling is therefore welcome for its confirmation of the commission's decision and its underlying policy. But nevertheless, it is bittersweet -- bittersweet because the court has confirmed the commission's view that consumers are suffering at the hands of Microsoft.

"On the market concerned by the decision, businesses and individuals are faced with no more choice than they were three years ago, when the commission adopted the decision. Microsoft's market share has grown to 80 percent for workgroup servers, up from 40 percent when the commission's investigation began. Microsoft's media player format has, as a result of its conduct, come to dominate the market. Recent years have certainly seen innovation in high technological markets, but largely in areas that Microsoft does not control. Having worked in business for many years, I know this pernicious effect that the illegitimate actions of a dominant company can have. For startups, venture capital dries up as investors look for opportunities elsewhere, out of the grip of the monopolist. For established businesses, a lucrative settlement can appear a better option than head-to-head competition."

She called on Microsoft to "desist from engaging in its anti-competitive conduct," and said the commission will "do its part to make sure that Microsoft complies swiftly."

The commission and the company have clashed, most recently, over the pricing Microsoft has proposed for licensing technical information to its server rivals. The commission has threatened further fines over that issue, in addition to the nearly $1 billion already paid by the company in the case.

Microsoft's news conference is starting shortly. More to come.

Updated at 6:15 a.m. to reflect further excerpts from Kroes' remarks.

Update, 7:30 a.m.: See this post for excerpts from Smith's comments.