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EU, Microsoft Talk as Judgment Looms

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From Reuters

The European Commission has begun circulating a draft of its final judgment in its antitrust case against Microsoft Corp. for allegedly abusing its dominant position in computer software, even as Brussels continued negotiations Monday aimed at seeking a settlement with the company.

The rough draft, which emerged last week, refers to the possibility of a large fine for Microsoft’s restricting competition by tying its Media Player software for playing video and music to its ubiquitous Windows operating system. The size of the fine was not spelled out.

“There is a draft on the table, and this should come as no surprise,” said Amelia Torres, a spokeswoman for EU Competition Commissioner Mario Monti. “After all, the investigation has been going on for long enough. The final stage was the hearing in November, and now we have to conclude.”

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Torres did not indicate a time frame, but others have said a decision is expected by spring.

The commission said in August that it was considering forcing Microsoft to sell a version of Windows without Media Player. It also was considering ordering the U.S. firm to make more information available to its rivals in the computer server market so they could make their products compatible.

The European antitrust enforcers are pursuing a two-track strategy.

On one track, the commission is making step-by-step preparations for its final ruling against the firm. But at the same time, Brussels continues to talk to Microsoft in an effort to reach a settlement.

Such a dual strategy is common in such cases.

Microsoft’s general counsel said Saturday that the company was talking to the commission about a possible agreement that could avert a ruling that might impose penalties and a large fine on the world’s biggest software company.

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