:: Deepquest ::

The European Commission yesterday gave Microsoft a final opportunity to co-operate with its antitrust case, or face a potential fine of up to ?2 billion.
The Commission presented the software giant with a final statement of objections against its business practice, alleging it is still unfairly dominating the market, where it provides over 90pc of operating systems, despite rebukes from US courts.

The statement, the third and final in a case which has now run for four years, picks out two areas where Microsoft is allegedly guilty of breaking monopoly regulations.

It says Microsoft’s inclusion in Windows operating systems of its own media player – which plays video and music files – provides an unfair advantage over its competitors such as RealPlayer and Apple’s Quicktime.

It also alleges Microsoft’s refusal to disclose details about how rival systems can communicate with networks running its systems is detrimental to competition.

Microsoft has a month to respond to the claims. The EC said potential remedies include opening its servers’ code to other firms and bundling alternative media players with new copies of Windows – or not including any player at all.

If Microsoft does not co-operate and is judged to have broken antitrust laws, it faces a fine of up to 10pc of its annual turnover, which in June was $32.2 billion (?20 billion).

A spokesman from Microsoft said it was examining the statement in detail. “Microsoft takes this investigation very seriously, and continues to work hard to maintain a dialogue that will allow positive resolution to the Commission’s concerns and this new statement.”

US courts found Microsoft abused antitrust regulations two years ago in a similar case, but the Department of Justice scaled back sanctions.

more from [url=http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2003/08/07/cnmicro07.xml&menuId=242&sSheet=/money/2003/08/07/ixcity.html]The Telegraph[/url]