"We apologize to the city of New York and the people of New York City," Yusuf Mehdi, the corporate vice president for MSN Personal services and business, said in a statement released Friday.
"We made a mistake with the decals, and we take full responsibility for what happened," Mehdi said. "We are working with city officials to clean up the decals immediately."
On Thursday, Microsoft plastered hundreds of butterfly decals, measuring 12 to 20 inches in width, on sidewalks, doorways, traffic signals and stoplights primarily in midtown.
The city immediately demanded an end to the illegal guerrilla advertising campaign.
City officials said they accepted Microsoft's apology.
"We're glad that Microsoft is going to stop and obey the law, and we're also pleased that they're very willing to make restitution," Tom Cocola, the assistant transportation commissioner for public affairs, told The New York Times.
Cocola said Microsoft had offered to cover the cost of cleaning up the plastic decals, held in place by static electricity. Microsoft received a single $50 summons, although it could have been fined for each decal.
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