Microsoft's Antitrust Woes Continue

Microsoft learned of bad news on two antitrust fronts Tuesday. European Union officials voted in Brussels to unanimously accept the European Commission's plans to fine the company 2 million euros per day, while in South Korea Microsoft's injunction appeal was rejected.

Of the two, the EU decision carries the most consequences for Microsoft, and could mean that the company may owe hundreds of millions of euros in backdated fines, potentially doubling the already 497 million euro antitrust settlement.

EU officials have yet to determine a date from which Microsoft would be liable for any penalties -- that will be decided next week -- although the Commission has previously threatened to backdate the fines to December 15. If that threat stands, it would mean at least a 400 million euro penalty.

The move also seems to legitimize the Commission's authority within the EU. Some said that a rebuke of the decision to fine Microsoft by the governing body might have weakened its ability to levy penalties in future cases.

In South Korea, the news was also bad for the Redmond company. A court in Seoul rejected an attempt by Microsoft to have a 32.5 billion won judgment suspended, calling the company's claims unfounded. A separate case looking to have the ruling overturned has not yet been decided.

The move follows one by Microsoft in March that asked the Korean FTC to reconsider its ruling, which was rejected in May.

The South Korean FTC also warned Microsoft against taking the judgment to the high court, saying in a statement that it planned "to actively take counter-measures if Microsoft appeals to the highest court against this decision."

"Microsoft will continue to defend its position in the main action by presenting evidence of its full compliance with Korean competition laws, and how it has conducted business for the benefit of Korean consumers," the company said in a statement. "While Microsoft believes that the KFTC’s order will hinder technological innovation in Korea, it remains committed to continuing its business in Korea and to providing innovative technology to Korean customers."

Microsoft did, however, some good antitrust news late last week. On Friday, a Maryland District Court judge threw out a case filed by Go Computing, which accused Microsoft of blocking its attempts to enter the operating system market.