Following a five-year investigation, the European Commission found that Microsoft broke competition law by leveraging its near monopoly in the market for PC operating systems onto the markets for work group server operating systems and for media players.
Because the illegal behaviour was still ongoing, the Commission ordered Microsoft to disclose to competitors, within 120 days, the interfaces required for their products to be able to "talk" with the ubiquitous Windows operating system.
Microsoft was also required, by 28th June, to offer a version of Windows without Windows Media Player to PC manufacturers (or when selling directly to end users). In addition, Microsoft was fined €497 million for abusing its market power in the EU.
Microsoft filed its appeal in early June, followed late last month by a request to the court to suspend sanctions until the appeal has been heard. Shortly afterwards the Commission confirmed that it would suspend the enforcement of the ruling until the European Court of First Instance had decided whether a suspension was actually appropriate.
Microsoft has therefore not yet been forced to 'untie' Windows Media Player, but it has paid the fine, which will be held in escrow – i.e. under the control of a trusted third party – until the appeal has been heard.
The first stages of the court process are now underway. An informal meeting between the two parties and the president of the European Court of First Instance, to consider the question of the suspension of the sanctions, is likely to take place on 27th July, according to Reuters.
