Microsoft confident Vista changes will appease EU

Microsoft yesterday said it was on track to release the Vista operating system next month, after making changes to its new flagship…

Microsoft yesterday said it was on track to release the Vista operating system next month, after making changes to its new flagship product in an effort to meet concerns expressed by the European Commission and the Korean antitrust authority.

Brad Smith, Microsoft's general counsel, said the most recent changes to Vista would ensure that the new system would not undermine competition in the crucial markets for internet search, security software and fixed-document readers.

After speaking to EU antitrust chief Neelie Kroes on Thursday, the company said it had made changes to its Internet, fixed document format and security software in Vista, while Korean consumers would get a unique version of the system.

"Microsoft agreed to make each of the changes that the Commission advises us today," Mr Smith told reporters.

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"Having made these changes, the company and [ Microsoft chief executive] Steve Ballmer feel comfortable moving forward, feel confident that we are in compliance with our EU competition law obligation," he said.

The latest move by Microsoft is designed to avoid a new stand-off with the Brussels-based regulator, which two years ago imposed a record €497 million fine on the group for abusing a dominant market position.

The US software group had previously warned that the uncertainty over the Commission's response to Vista could delay the launch of its new product.

The Commission has repeatedly warned that it might have to take action over Vista because it integrates a wealth of new programmes and functions into the operating system.

Groups such as Google, the leader in internet search technology, Symantec and McAfee, which provide security software, and Adobe, the maker of the PDF document reader, are concerned that their business will be harmed if Microsoft "bundles" rival versions of their products into Vista.

But Mr Smith insisted yesterday that Microsoft's rivals would now be able to compete on a level-playing field.

Security software companies would, for example, be given sufficient information to make their products interoperable with Vista, including the system's controversial high-security "kernel" that is designed to protect Vista's core against viruses and other security breaches. In an effort to meet Korean antitrust concerns, Microsoft will launch versions of Vista in that market that include links to competing media and instant messaging software, and versions of Vista without Microsoft's Media Player.

The Brussels regulator responded to the group's announcement with a tersely-worded statement, insisting that it "will closely monitor the effects of Vista in the market and, in particular, examine any complaints concerning Vista on their own merits".

Both the Commission and Microsoft stressed that the regulator had not given a "green light" to the Vista launch.