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EU: Microsoft fine premature
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October 10, 2001: 8:01 a.m. ET
Report: Microsoft may face fine and demand to drop features from Window software
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LONDON (CNN) - The European Commission said on Wednesday talk of a fine for Microsoft's alleged breach of competition rules was premature.
Commissioner Mario Monti made the comment in response to an article in the Wall Street Journal, which said European antitrust enforcers may seek a massive fine from Microsoft and demand it drop some features from its dominant Windows software.
The commission, the executive arm of the European Union, alleged Microsoft (MSFT: down $3.48 to $54.56, Research, Estimates) misled investigators and sought to obstruct the case, the Journal said, citing a confidential European Commission document outlining its case.
"I highly regret what appears to be a leak of the statement of objections sent by the commission at the end of August," said Monti. "To speak of a fine when Microsoft has not yet disputed the commission's preliminary findings both in fact and law, as is it's right, is premature."
Microsoft had been granted a short extension of the deadline to reply to the statement of objections and after that it would also have the right to defend itself at a hearing, Monti said.
According to the documents, Microsoft is said to have illegally used its dominant Windows and Office software to muscle into the fast-growing market for corporate and Internet computer software. The commission also alleges Microsoft sought to dominate the music and video software for the Web.
Microsoft, based in Redmond, Washington, deliberately designed its Windows 2000 desktop software and companion products so that they would not work well with rivals' software, the document alleges.
The investigation focused on the market for servers and alleged that Microsoft illegally bundled its Windows Media Player video software into Windows to shut out competition.
Microsoft includes the Media Player software, which competes primarily with the RealPlayer from RealNetworks (RNWK: down $0.19 to $5.27, Research, Estimates), as a standard part of its Windows operating system software.
Microsoft's plans to incorporate functions like streaming media and Internet authentication services in its newest operating system, called Windows XP, already has come under attack by government officials, as well as its rivals, in the U.S..
The commission could impose a fine of up to 10 percent, or $2.5 billion, of Microsoft's annual revenue, the journal said. 
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