Brussels to fine Microsoft

net1

The European Commission is poised to fine Microsoft millions of Euro for having abused its dominant position in the software market. People close to the case said Brussels' competition department had concluded the software company should be fined.

The draft final ruling which the Commission's competition body, led by Competition Commissioner Mario Monti, has completed after more than four years of investigation, is being scrutinised by other departments - a process that sometimes lasts months. In a non-binding step, member states will also be consulted on both the decision and the size of any fine before the 20 Commissioners vote on the issue.

The case is seen as one of Europe's most important antitrust struggles, because of the company involved, but also because of its possible effects on technology policy and US relations. The European case follows Microsoft's 2002 settlement with the US Justice Department.

The Commission has consistently called for Microsoft to pay a fine, unbundle its Media Player program from the rest of Windows and share more information with competitors. Brussels is planning to complete the whole process before May 1, when 10 new states join the European Union. Microsoft is likely to challenge any adverse ruling at the EU's Court of First Instance in Luxembourg.

Meanwhile across the English channel, Microsoft's founder Bill Gates is to receive an honorary knighthood from the Queen for his contribution to enterprise in the UK. As an American citizen he cannot use the title "Sir" but will be entitled to put the letters KBE after his name. Gates, is also being honoured for his work on poverty reduction around the world, said the UK Foreign Office.