Microsoft in talks with EC over charges of abusing position

MICROSOFT CORP chief executive officer Steve Ballmer and general counsel Brad Smith held talks with the European Commission yesterday in an effort to settle row over the world’s largest software maker allegedly abusing the dominance of Windows to stifle competition.

Negotiations ended yesterday evening, and will continue today, Amelia Torres, a spokeswoman for the commission, told reporters in Brussels. She declined to discuss the talks further. A ruling is due as early as March 24, according to people familiar with the matter.

“It’s always preferable to have a settlement than have any regulatory body rule against them,” said Don Gher, chief investment officer at Bellevue, Washington-based Coldstream Capital Management, which owns shares of Microsoft among its $525 million under management. “Reducing uncertainly is the main goal here. That’s what the market wants to see and an agreement would reduce the uncertainty,” he said. The software maker, whose products power about 95% of personal computers, is illegally using Windows to seize control of markets for servers and audio and video players, the commission alleges. Regulators are preparing to fine Microsoft, force it to disclose proprietary information to rivals and give PC manufacturers the option of dispensing with its Windows Media Player, according to people familiar with the matter. The Financial Times reported talks earlier yesterday.