Microsoft Must Share Code with Rivals

Microsoft lost its appeal of a European antitrust order Monday that obliges the technology giant to share communications code with rivals, sell a copy of Windows without Media Player and pay a $613 million fine -- the largest ever by EU regulators.

The EU Court of First Instance ruled against Microsoft on both parts of the case, saying the European Commission was correct in concluding that the world's biggest software company was guilty of monopoly abuse in trying to use its power over desktop computers to muscle into server software.

Microsoft Corp., based in Redmond, Wash., said it would withhold comment on the decision and on whether it would appeal to the EU's highest court, the European Court of Justice, until it had gone through the 248-page ruling. It has two months to appeal. Microsoft earned $14.07 billion last fiscal year.

"I don't want to talk about what will come next," said Microsoft lawyer Brad Smith. "We need to read the ruling before we make any decision."

But he said the company accepted that it may need to do more to comply with EU demands -- without giving specifics.

"It's not our desire and it is not our goal to have continuous arguments and disputes. We want to move forward," he told reporters -- saying he had called the Commission earlier to congratulate them.

The court had confirmed that regulators had "quite broad power and quite broad discretion" over companies with large market shares, he said, citing Google Inc., Apple Inc. and International Business Machines Corp. as those that needed to heed the decision.

The court said regulators had clearly demonstrated that selling media software with Windows had damaged rivals.

"The court observes that it is beyond dispute that in consequence of the tying consumers are unable to acquire the Windows operating system without simultaneously acquiring Windows Media...