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Microsoft is taking legal action against the European Commission and has confirmed it has filed a suit with the Court of First Instance. As part of the agreement reached last March the Court asked MS to open up access to its server APIs - it is this issue the software firm is now contesting.

Microsoft issued a wordy statement which suggests they've spent too long talking to lawyers and European bureaucrats: “Microsoft has filed an application for annulment with the Court of First Instance specifically concerning the issue of broad licenses in source code form of communications protocols which are based upon Microsoft’s intellectual property.

"This filing is the result of the agreement we reached with the Commission in June to put this particular issue to the Court of First Instance for guidance and avoid any further delay in the process. We are taking this step so the Court can begin its review now of this issue given its far reaching implications for the protection of our intellectual property rights around the world.” And breathe.

As part of the settlement agreed in March 2004 the software giant to pay a fine of €497m, to offer a version of Windows without a media player and to open up access to its server APIs.

Additionally an EC spokesman told Reuters they were still trying to agree an ombudsman or trustee to oversee MS's compliance with EC demands.

More on News.com here

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