Microsoft pleads with EU

Microsoft has vowed to do more to avoid €2m a day fines as the US software giant begins a make or break hearing with EU competition watchdogs.

The company has asked the European commission to help it work to comply with tough remedies set after a 2004 anti-trust decision.

The commission has accused Microsoft of failing to fully implement EU demands to open computer codes to rivals after ruling the company abused the dominance of the Windows operating system.

“Microsoft are willing to do more but cannot do this alone. Daily fines are not the solution,” said the company’s lawyer Brad Smith on Thursday.

“A fine is not the answer, we need clear guidance.”

The commission remains unimpressed with Microsoft’s pleas for extra help with compliance.

“It is not necessary for Microsoft to beyond what is asked for. It would be quite sufficient to do what thye are supposed to do,” said a spokesman.

“What they have to do is provide products that are interoperable.”

The two-day closed hearing follows heated media exchanges between both sides.

Thursday and Friday’s proceedings will be assessed by competition commissioner Neelie Kroes, who will decide on fines in “at least several weeks”.

The bill for Microsoft could huge, charged at a daily €2m rate since a compliance deadline of December 15 2005.

Microsoft has denied anti-competitive actions and appealed against the commission, the EU courts will hold a first hearing at the end of this month.

The US software company is also under new pressure from Brussels after Kroes wrote yesterday Microsoft chief executive Steve Ballmer to express worries about a new operating system known as Vista.

“We expect that Microsoft will design Vista in a way which is in line with the European competition laws. It would be rather stupid to design something that is not,” she told the US press.

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