Posted On: September 17, 2007 by Michael J. Hamblin

Microsoft Appeal Rejected by EU Commission

The second-highest European court today strongly rebuked Microsoft when it rejected Microsoft's request to overturn a landmark European Commission antitrust ruling that the company had wrongfully taken advantage of its dominance in computer operating systems.

Legal and industry experts have said the decision will favor smaller software makers and place software market leaders on notice that they cannot take advantage of one technology niche to quash innovation on a broader scale.

The ruling by the European Court of First Instance ordered Microsoft to comply with a March 2004 commission order to share confidential computer code with Microsoft's competitors. The court also upheld the record financial sanction against the compan of almost $690 million.

Legal and software experts have noted that the EU court’s decision might portend problems for other high tech companies such as Qualcomm, Intel, and Apple. The market dominance of these companies in related niches such as online music, computer chips and cell phone technology is also being closely reviewed by the commission.

The decision also could make it much more difficult for Microsoft to continue the oft-critized pracatice of “bundling” new features into its Windows software.