Microsoft finally bows to EU antitrust measures

By David Lawsky

BRUSSELS (Reuters) - Microsoft Corp (MSFT.O) ended three years of resistance on Monday, finally agreeing to comply with a landmark 2004 antitrust decision by the European Commission.

The defeated software giant announced it would not appeal against a decisive European Union court ruling two months ago that backed the bloc's executive Commission.

"The repercussions of these changes will start now and will continue for years to come," Competition Commissioner Neelie Kroes told a news conference, adding that Microsoft's agreement would have "profound effects" on the software industry.

"It is a victory for the consumer," she said.

Microsoft, which was fined nearly half a billion euros in 2004 and a further 280.5 million euros (195.6 million pounds) in 2006 for non-compliance, faced the prospect of steep new fines if it did not accommodate the Commission.

"As from today Microsoft has established compliance, no doubt about that," Kroes said. "There is no reason to impose further penalties on Microsoft as of this day."

But Microsoft still faces fines for lack of compliance between 2006 and now, potentially reaching hundreds of millions of euros.

Among other reversals, Microsoft will make available to so-called "open source" software developers information they need to make their programmes work smoothly with Microsoft's Windows operating system for personal computers.