The chief executive of Microsoft's Europe, Middle East and Africa division said it was complying with European Commission sanctions imposed last year when it ruled that the software firm had violated anti-trust laws.

But Jean-Philippe Courtois said there may be little appetite among customers for a stripped-down version of its Windows operating system that it has been ordered to provide.

"We are very respectful of the commission's decision and are responding by complying while we go for an appeal to the Court of First Instance," said Mr Courtois, who visited Dublin yesterday to announce a new R&D investment at Microsoft Ireland.

Almost a year ago, the commission found Microsoft violated antitrust laws and fined it €497 million.

It also required Microsoft to offer a version of its Windows operating software without audiovisual software and to provide information about protocols so that makers of rival servers could compete more effectively.

The commission is engaged in ongoing dialogue with Microsoft and its competitors about whether the firm has complied with the sanctions.

Some rivals have complained the firm has not gone far enough to meet the sanctions and the EU's Competition Commissioner, Neelie Kroes, has said she will follow a hard line with Microsoft on the issue.

In an interview with The Irish Times, Mr Courtois said Microsoft was still engaged in dialogue over the name that it had given its stripped-down version of its operating system, Windows XP Reduced Media Edition.