Microsoft Could Face New EU Fines

Microsoft Corp. must make it easier for developers of free programs to work with Windows by June 1 or face new European antitrust charges, people familiar with the matter said Friday.

The European Commission is threatening Microsoft with fines because it says the company’s response to a March 2004 order doesn’t go far enough, said the sources, who declined to be identified.

Microsoft, whose Windows operating system runs more than 90% of the world’s personal computers, contends that the commission’s demands go beyond the original decision, the sources said.

“Microsoft is concerned about losing control of its intellectual property, and the fact is some of the licensing terms used by open-source software developers raise a legitimate concern,” said Neil Macehiter, a partner at British firm Macehiter Ward-Dutton, which advises companies on information technology strategies. “A compromise is going to be difficult.”

“We are working hard with the commission to fully comply with the decision,” said Tom Brookes, a spokesman for Redmond, Wash.-based Microsoft.