US government says Microsoft EU ruling 'unfortunate'

(WASHINGTON) - The US government Monday criticized an EU antitrust ruling upholding sanctions and a record fine against software giant Microsoft, saying it may have "unfortunate" consequences.

Thomas Barnett, head of the Justice Deparment's Antitrust Division, said the European Court of First Instance (CFI) may harm rather than help consumers who use technology.

"The decision is both lengthy and complex ... It will therefore be some time before the full impact of today's decision on antitrust policy in Europe will be apparent," Barnett said in a statement.

"We are, however, concerned that the standard applied to unilateral conduct by the CFI, rather than helping consumers, may have the unfortunate consequence of harming consumers by chilling innovation and discouraging competition."

Barnett said that in the United States, "the antitrust laws are enforced to protect consumers by protecting competition, not competitors" and that barring "demonstrable consumer harm, all companies, including dominant firms, are encouraged to compete vigorously."

"US courts recognize the potential benefits to consumers when a company, including a dominant company, makes unilateral business decisions, for example to add features to its popular products or license its intellectual property to rivals, or to refuse to do so," he added.

The EU decision comes in sharp contrast to an antitrust case in the United States, in which Microsoft emerged largely unscathed from a long period of litigation.

The company successfully overturned on appeal a US judge's ruling that would have broken up the world's biggest software firm. Yet Microsoft has had to pay some four billion dollars in damages to rivals and remains under court supervision.