The European Union had only one message for Microsoft December 22: Start offering Windows without the bundled-in media player.
European Court of First Instance president Bo Vesterdorf announced Microsoft must comply with European Commission penalties handed down last March even as Microsoft's continues working through the appeals process.
"The evidence adduced by Microsoft is not sufficient to show that implementation of the remedies imposed by the Commission might cause serious and irreparable damage," the Court of First Instance said in a formal statement.
Microsoft counsel Brad Smith told reporters the company would set up a Web site to let competitors start licensing several communications protocols the EU ruling specified, and continue working on a special Windows version that doesn't bundle Windows Media Player for the European market.
Microsoft has two months to appeal the decision to the European Court of Justice, but the company has yet to decide whether to appeal. But Smith told reporters the company didn't expect to need two months to decide.
"The court nonetheless recognized we have a number of arguments that are important and will need to be weighed seriously and could well win at the end of the day," he was quoted as saying. He didn't say a win was guaranteed, but he did say Microsoft has "cause for optimism."