Microsoft loses antitrust case, agrees to comply with EC ruling

Mumbai: Software giant Microsoft Corporation has ended three years of resistance and agreed to comply with the EU Commission''s 2004 anti-trust ruling that it was abusing its dominant market position.

Two months ago a European court confirmed the EC''s finding that Microsoft had used its Windows personal computer operating system to crush rivals in related markets.

The court also backed the imposition of a record 497 million euros ($690 million) fine on Microsoft.

Microsoft said it would not appeal against the court ruling and agreed to make "substantial changes" to comply with the EC ruling.

As per the ruling, Microsoft will have to reduce royalties payable for interoperability information on its Windows computer programme to a "nominal" one-off payment of 10,000 euros ($14,000) for rival firms.

The royalties for a worldwide licence, including patents, will be reduced from the current 5.95 per cent to 0.4 per cent, the EC announced.

"The EC has ensured that Microsoft will now take the necessary steps to comply with its obligations... regarding work group server operating systems," including making interoperability information available to rival software companies, the EC said in a statement.

Software developers "will be able to access and use the interoperability information," competition commissioner Neelie Kroes said.

"In these agreements between third party developers and Microsoft, Microsoft will guarantee the completeness and accuracy of the information provided," the statement said, adding that the agreements will be enforceable in the London High Court, along with the EC''s own enforcement powers.

The verdict is a big blow to Microsoft''s Widows-based business strategy, which made the company one of the biggest and most profitable enterprises in the world.