Time Running Out on MS-EU Deal

Microsoft has until the end of this month to comply with the European Commission's 2004 anti-trust ruling or face sanctions, a spokesman said on Monday. The EU has threatened to fine the company up to 5 percent of its daily global sales if it does not comply, and says that time is running out.

"We will take stock after the end of the month," EU Commission spokesman Jonathan Todd said. He refused however to say at what stage the talks were at, or if the EU will actually go through with fining Microsoft, only telling the Associated Press that "contacts were continuing."

It appears as if the problem revolves around Microsoft's reluctance to share its source code to allow third-party access and ensure better compatibility with its server products. Also at issue is the belief of the EU Commission that the company's version of Windows without Media Player is not up to the standards that they have set.

Under European Commission policies, it has the right to fine a company up to five percent of its daily turnover if it deems a company is not following its orders. Last year, the EU fined Microsoft $497 million, and demanded a version of Windows XP be released without its bundled media player.

Although time may be running out, it appears as if the Commission may still have some patience to work with Microsoft. According to competition chief Neelie Kroes, the two parties made an agreement to strike a deal before the end of the month, and all the Commission is waiting for it for is "the Microsoft people to do their homework."