Microsoft suffers Window blow from EU

The EU struck at the commercial backbone of Microsoft’s global software empire today – forcing the company for the first time to strip its Windows platform of a popular feature to give competitors a better shot at success.

An EU court ruled Microsoft must immediately divulge some trade secrets to competitors and produce a version of its flagship Windows operating system without the program that plays music and video.

The 91-page ruling thwarts Microsoft’s attempt to delay, pending appeal, implementation of the EU's landmark antitrust decision in March that demanded changes in the software giant’s business practices.

The company said it would start shipping Windows without its digital Media Player within weeks so it will be on sale as an alternative to the full Windows program by February.

Microsoft said it lamented the fact it was forced to release “a degraded version” of Windows.

The implications for Microsoft are sizeable since software that plays media files is increasingly in demand as more consumers get broadband connections to the internet and use their PCs as entertainment centres.

There is also the question of precisely what computer code Microsoft will share with competitors so those companies’ programs work better on networks run by Microsoft server software.

The Luxembourg-based European Court of First Instance found Microsoft “has not shown that it might suffer serious and irreparable damage as a result of implementation of the contested decision”.

EU spokesman Jonathan Todd said the ruling “preserves the effectiveness of antitrust enforcement, in particular in fast-moving markets”.

Microsoft said the ruling still held encouraging comments, recognising that “some of our arguments on the merits of the case are well-founded”.