• Reuters, Monday, September 17, 2007 11:15 AM

Microsoft lost a big case when a European Union court ruled that the software giant was unjustified in tying applications to its operating system Windows, claiming it harms consumer choice. The court, the second highest in the EU, dismissed Microsoft's appeal on "all substantive points" of a 2004 European Commission antitrust ruling.

The end result is bad for Microsoft and good for competitors like Google, because the world's largest software maker may now be forced to leave out popular Windows-bundled programs, like Internet Explorer and Windows Media Player from future sales of the OS. As the report says, Microsoft may dispute the ruling on point of law, but not on point of fact. It also gives the European Competition Commission the ability to pursue new antitrust cases involving Microsoft, Intel, Qualcomm and others.

"Microsoft must now comply fully with its legal obligations to desist from engaging in anti-competitive conduct. The Commission will do its utmost to ensure that Microsoft complies swiftly," commission spokesman Neelie Kroes said in a statement. The software giant will now have to pay a record $689.9 million fine per the 2004 antitrust ruling. Microsoft said it plans to comply with the EU decision.

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