Microsoft has decided not to appeal last month’s appeal ruling against it from the Court of First Instance (CFI).

The decision means that Microsoft has finally agreed to comply with the European Commission’s 2004 antitrust ruling that sparked the appeal. Microsoft now faces paying a hefty 497 million euros (£350m) fine and the bulk of the EC’s legal expenses.

The decision to accept the CFI’s ruling will dispel any lingering uncertainty facing software and hardware developers over how to plan future product development.

“We will not appeal the CFI’s decision to the European Court of Justice and will continue to work closely with the Commission and the industry to ensure a flourishing and competitive environment for information technology in Europe and around the world,” the company said in a statement Monday.

Last month the Luxembourg-based CFI threw out Microsoft’s appeal, siding with the Commission on the two essential elements in the antitrust case: Microsoft’s failure to share necessary interoperability information about its Windows operating system with rivals and its strategy of tying its media player to Windows to the detriment of rival players.

The Commission declined to comment officially on Microsoft's decision not to appeal.

Based on reporting by Paul Meller, IDG News Service.