European Union fines Microsoft $613M

Software giant plans to appeal, seeks suspension of 'unwarranted' order

? The European Union slapped Microsoft Corp. with a $613 million fine Wednesday for abusively wielding its Windows software monopoly and ordered sanctions that go well beyond the U.S. antitrust settlement — setting up what could be another lengthy court battle.

Microsoft called the EU’s decision “unwarranted and ill-considered,” and said it would ask a judge to suspend the order pending appeal.

The EU antitrust office said it sought to alter Microsoft’s behavior because its five-year investigation found that the software giant tried to squeeze competitors out of Windows-related markets and “the illegal behavior is still ongoing.”

It gave the company 90 days to offer European computer manufacturers a version of Windows stripped of the company’s digital media player, software for viewing video and listening to music that is expected to become pivotal in the industry as multimedia content becomes more pervasive.

The EU also gave Microsoft 120 days to release “complete and accurate” information to rivals in the office server market so their products can work more smoothly with desktop computers running Windows.

“Microsoft has abused its virtual monopoly power over the PC desktop in Europe,” EU antitrust chief Mario Monti said.

Monti said he limited the order to Europe in deference to regulators in the United States and other countries, but that doing so “will not unduly undermine the effectiveness,” given the size of the European market. Microsoft, which had $32 billion in revenue last year, does about 20 percent of its business in Europe, the Middle East and Africa.

Microsoft’s general counsel, Brad Smith, said he would ask the presiding judge at the European Court of First Instance to stay the order pending appeal — a process that could take years.

Microsoft Chairman Bill Gates, announcing a new speech server product in San Francisco on Wednesday, did not mention the EU case.