Commissioner moves to soften decision on Microsoft

Mr Frits Bolkestein, Europe's single market commissioner, has intervened in the European Commission's case against Microsoft to ensure a final decision is not too harsh on the software giant.

Mr Bolkestein's officials had been worried that the Commission's proposed "remedies" in the case might infringe on Microsoft's intellectual property rights by forcing it to share too much of its programming code with rivals in the market for computer servers.

The Microsoft inquiry is one of Europe's most high-profile antitrust cases in a generation. It concerns allegations that the firm illegally "leveraged" the dominance of its Windows operating system into other markets.

The negotiations over how much information Microsoft would have to disclose show the firm may be spared from having to adapt its behaviour as much as some of its enemies have urged. The Commission's proposals, however, could go further than a settlement in 2001-02 to a case brought against the group by the US government.

Mr Bolkestein's officials have been in close contact with the Commission's competition department, headed by Mr Mario Monti. They say such procedures are a normal part of "inter-services consultation" when a formal decision is near. The internal talks, running parallel to contacts between Mr Monti and Microsoft, show that even if the Commission rules against the software group, "remedies" for the firm's alleged abuses will have been subjected to extensive negotiations.

The Commission has already reached a preliminary conclusion that Microsoft has broken European competition law by refusing to give its rivals information that would allow their servers to work better with Windows-driven personal computers and by "tying" its Media Player program to the rest of Windows.

Although the firm denies the charges, both sides would like a settlement, which could avoid a protracted legal fight and continuing uncertainty.

Talks are likely to reach fever pitch between two formal consultations of officials from EU member-states scheduled for March. A final Commission decision could come by the end of that month. Mr Bolkestein's officials were concerned that a violation of Microsoft's intellectual property rights might set a worrying precedent and the decision could be challenged in court. They stress that Mr Monti and Mr Bolkestein are "politically as one" on the Microsoft case.