Microsoft has agreed to implement all the "main changes" to its new stripped-down version of Windows requested by the European Commission, the software giant said today.
The European Union's executive had ordered Microsoft to sell a version of the dominant computer operating system without its Windows Media Player program after ruling that the company had abused the near-monopoly of Windows to crush competition, and fined it nearly €500 million.
The two disagreed over technical issues, but Microsoft said it would adopt the Commission's suggested name for the operating system, "Windows XP Home Edition N", after the EU anti-trust authority rejected 10 options from Microsoft.
"Earlier today we contacted the Commission and informed them that we have accepted all the main changes they have requested we make to the version of Windows without Media Player," said Mr Horacio Gutierrez, Microsoft's top lawyer in Europe.
The modifications include technical changes to "registry settings," and removing references in product documents and packaging warning that certain products won't work without Media Player, Mr Gutierrez said.
Microsoft had also agreed to create a software package allowing consumers to replace the absent media files, he added.
Mr Gutierrez said "a few technical issues" remained to be resolved but added: "This basically takes care of 99 per cent of the things they asked for."
A Commission spokeswoman could not immediately confirm that Microsoft had notified it of the changes. The Commission's order is meant to open the market for alternative software to play films and music, from RealNetworks , Apple and others.
Microsoft is appealing the Commission's landmark decision, and other disputes are still simmering about a second order to share information with rival makers of servers and the appointment of a trustee to monitor Microsoft's compliance. Microsoft could ultimately face fines of up to $5 million a day if the Commission finds it is refusing to comply with its decision.