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The Microsoft Decision

By Martin Baker and Michael Dietrich
February 26, 2008

Microsoft's recent decision not to appeal the landmark ruling of the European Court of First Instance (CFI) regarding anti-competitive practices provides an opportunity for reflection and analysis.

An assessment of the Microsoft saga for technology and other IP-rich businesses depends upon a clear understanding of what the European Commission and the CFI decided and, perhaps even more importantly, what they did not decide.

The Commission concluded that Microsoft had approaching a 95% share of the market for operating system for PCs and, unsurprisingly, that Microsoft held a dominant position. That finding was not appealed. The thrust of the Commission's argument was that Microsoft's dominant position meant that it was under an obligation to disclose interface specifications and that it was under a separate obligation not to tie Windows Media Player into the Windows Operating System

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