Microsoft to fight EU charges over software

Microsoft is set to defend itself today against European Union charges that it muscled out rivals who make software for playing…

Microsoft is set to defend itself today against European Union charges that it muscled out rivals who make software for playing music and videos from the Web.

The firm is fighting charges by the European Commission that could lead to a large fine and orders to rewrite its software.

The Commission charged that Windows was designed to work better with Microsoft's own low-end network software than its rivals' products, sources familiar with the case said.

Microsoft is expected to complete its presentation by midday on this, the second day of a closed-door, three-day hearing. Then rivals and supporters will get their say.

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European Commission regulators could order Microsoft to remove its own music and video player from Windows when they announce their decision in mid 2004.

The Commission has publicly said one of its goals is to ensure other producers' server software can connect to desktop computers running Windows as easily as Microsoft's can.

Microsoft's share of the low-end server software market has increased since the inquiry started five years ago, but the firm denied anti-competitive practices were the reason for this.

Microsoft argued during the hearing that sufficient ways still exist for others to connect to its servers, but that it had pulled ahead of competitors such as Novell because its products were more versatile, sources said.

However, critics say Microsoft stopped giving Novell essential help to link its software to Windows once it decided to enter the server market itself.