Microsoft told a special 13-judge court on Monday the European Commission made fundamental errors in deciding that the company illegally tied Windows Media Player to its near-monopoly operating system.
"That theory is flawed at every step," Microsoft lawyer Jean-Francois Bellis told Europe's second-highest court, the Court of First Instance, in opening remarks during the software giant's challenge to the landmark 2004 decision.
Instead, he said, consumers had benefited from Microsoft's improved Windows and competition in the audiovisual software industry was thriving, contrary to the Commission's predictions that rival media player providers would become extinct.
The Commission, the executive arm of the European Union, found Microsoft had abused a virtual monopoly in its Windows operating system to muscle out rivals.
It imposed a record 497 million euro ($613 million) fine and ordered Microsoft to change the way it sold software.
The Commission ordered Microsoft to sell a version of Windows without Windows Media Player, which is audiovisual software used to watch movies and television and listen to the radio over the Internet.
The idea was that computer makers would take the stripped-down version of Windows, known as XPN, and sell it with rival audiovisual software such as RealNetworks' RealPlayer or Apple Computer's Quicktime.
"As of today no PC maker has shipped a version of XPN ... not a single one," said Microsoft's lawyer, Jean-Francois Bellis, noting that such companies accounted for nine out of 10 sales of Windows.
As for the rest, stores ordered 1,787 copies of XPN among 35 million copies of Windows, giving it an order ratio of 0.005 percent, he said.
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