A top European court this morning handed Microsoft Corp. a surprise defeat in its epic antitrust battles, backing the European Commission’s 2004 record fine of $690 million against the software giant, Reuters reported.

Despite earlier expectations of a split judgment, the European Union’s second-highest court upheld an early ruling against the company.

Microsoft general counsel Brad Smith said the company would study the ruling before deciding whether to appeal, but would take “additional steps” to comply with the decision.

Microsoft has two months and 10 days to appeal the ruling, with a decision on the appeal taking up to three years.

The tribunal confirmed the European Commission’s 2004 antitrust finding that Microsoft had used its Windows personal computer operating system to crush rivals in other linked markets, such as media players.

The Commission ordered Microsoft to sell a version of Windows PC without a media player already bundled in and to share technical information with rivals so they can make products that can function with Windows.

Microsoft has fought back at every chance, arguing that customers prefer Windows to include a media player and that the commission wants it to turn over valuable trade secrets often protected by patents and copyright to competitors.