Microsoft Rivals to View Code

Under threat of daily fines by European Union antitrust regulators, Microsoft Corp. agreed Wednesday to let competitors examine some of the blueprints to its flagship Windows operating system.

Microsoft said it would offer commercial rivals access to a “pretty significant” chunk of the source code governing communications between servers. The code is from its Windows workgroup server and its desktop operating systems.

Responding to a 2004 EU antitrust ruling, Microsoft in December offered rivals thousands of pages of documentation and free technical support on the communications protocols for its software for running servers, the machines powering websites and other Internet services.

But an independent monitor nominated by Microsoft last month called the documents “totally unfit for its intended purpose.” The European Commission then threatened to fine Microsoft as much as $2.36 million a day, retroactive to Dec. 15, saying the software giant was proving intransigent about sharing data with competitors.

Although Microsoft insists what it had provided was adequate, the company said it was releasing the source code to address any lingering regulatory concerns.

“The source code is the ultimate documentation,” said Brad Smith, Microsoft’s chief counsel. “It should have the answer to any questions that remain.”

The European Commission said it would study Microsoft’s offer carefully, adding that it looked forward to receiving by the Feb. 15 deadline Microsoft’s reply to the charge sheet it sent in December.

The technical information is important for competitors to make their software compatible with Windows servers.

Microsoft won’t make the entire Windows source code available, only the portions dealing with communications between servers.

In March 2004, the EU levied a record $613-million fine against Microsoft. It also ordered the company to share technical information with rivals for a reasonable fee and offer a version of Windows without the Media Player software to mitigate what the court saw as an abuse of the company’s dominant position in the industry.

Microsoft, based in Redmond, Wash., is appealing the ruling, and the case will be heard in late April by the European Court of First Instance.