Microsoft Faces EU Charges

Microsoft Corp. was accused by European antitrust authorities of misrepresenting evidence the biggest software company submitted to rebut monopoly charges, people familiar with the case said Wednesday.

The European Commission also raised the possibility that it would impose a large fine if it determines that Microsoft illegally tried to dominate the market for software that powers large computers and illegally tied its Media Player to the Windows operating system, people said.

The charge that Microsoft tried to obstruct the EU’s investigation was contained in a 70-page statement circulated in August that outlines the case against Microsoft, according to people who have seen the confidential document.

“We have not done anything to violate antitrust laws or to mislead investigators,” said John Frank, associate general counsel for Microsoft Europe. “We are working with the commission” to resolve the case.

The EU said Microsoft presented letters supporting its business practices from companies that hadn’t been told the purpose of the testimonials, people said. EU investigators alleged in some cases that Microsoft drafted the letters for the companies to sign, the people said.

The EU also claimed that Microsoft falsely told the EU that some companies didn’t want their letters made public, people said.

European Competition Commissioner Mario Monti said he “regrets” the apparent leak of the charges against Microsoft and promised to investigate how the information became public.

He said it is “premature” to speak of a fine against Microsoft because it’s only “a possibility.”

The European Commission, the regulatory arm of the 15-member European Union, has the power to force changes in Windows and fine Microsoft up to 10% of its annual revenue, or $2.5 billion. Fines are usually set below that level.

Shares of Redmond, Wash.-based Microsoft rose 95 cents to $55.51 on Nasdaq.