May 9 (Bloomberg) -- Microsoft Corp., the world's largest software maker, asked a court to overturn or reduce a record 899 million-euro ($1.4 billion) European Union fine for failing to comply with an antitrust ruling.

The appeal was filed today at the European Court of First Instance in Luxembourg, Microsoft spokesman Jesse Verstraete said in an e-mailed statement. The company is attempting to seek clarity from the court, he said.

``There's a fairly good record of the court lowering fines the commission has made upon appeal,'' said Philip Marsden, a competition lawyer and senior research fellow at the British Institute of International and Comparative Law, who isn't involved in the case. ``It's the company's legal right to appeal such fines, particularly with respect to orders regarding compliance with such a controversial and vague set of requirements.''

The European Commission, the EU's antitrust authority, fined the company on Feb. 27 for failing to comply with a 2004 antitrust order. Under that decision, in which Microsoft was fined 497 million euros, the EU ordered the software maker to provide data to rivals to allow servers to connect to the Windows platform. Microsoft was required to charge reasonable royalties for the network data technology.

Redmond, Washington-based Microsoft was the first company in 50 years of EU competition policy to face a penalty for failing to comply with an EU order. The commission found that Microsoft overcharged for patent licenses that rivals needed to connect products to the Windows operating system. The fine brought the total penalty against Microsoft to 1.68 billion euros.

Microsoft's Rights

A European court upheld the commission's 2004 ruling against Microsoft in September, meaning the company wasn't in compliance for three years.

Microsoft has the right to an oral hearing at the EU court before a final ruling. The company can appeal any decision to the European Court of Justice, the EU's highest court.

``The commission is confident that the decision to impose the fine is legally sound,'' spokesman Jonathan Todd said by telephone today.

Microsoft hasn't resolved its legal fight with the EU. In January, regulators opened investigations into whether the company is using its dominance in word processing and spreadsheets to thwart rivals and whether the company unlawfully tied an Internet browser to Windows.

Microsoft has sought to resolve its legal disputes with the EU. In December, the company reached an agreement on licensing terms that will allow open-source products to connect to the Windows operating system.

The company's stock rose 12 cents to $29.39 at 4 p.m. New York time in Nasdaq Stock Market trading. It has dropped 17 percent this year.

To contact the reporter on this story: Matthew Newman in Brussels at Mnewman6@bloomberg.net; Stephanie Bodoni in Luxembourg at sbodoni@bloomberg.net

Last Updated: May 9, 2008 16:12 EDT