Microsoft conducts preliminary talks with EU to settle investigations

The people familiar with the matter said that Microsoft Corp. is trying to settle two additional probes before EU Competition Commissioner Neelie Kroes leaves office at the end of the year. Any agreement would have to resolve a case over Microsoft’s Internet browser as well as a separate investigation into word processing and spreadsheet software.

Settlement discussions, which include senior EU and company officials, come after Microsoft canceled a June hearing in the browser case, complaining not enough EU and national competition authorities would be able to attend. Besides, the EU gave Microsoft rivals Google Inc. and Mozilla Corp. permission to submit arguments in the Internet Explorer case.

The commission has said it is considering forcing the Redmond, Washington-based company to offer consumers a choice of browsers when setting up a new personal computer on a so-called ballot screen. Microsoft responded by saying it would ship Windows 7 operating-system software without Internet Explorer to avoid breaking EU law. However, Microsoft’s offer to separate the browser from Windows might make it difficult for the EU to defend a new fine in court, said Nicholas Economides, a law professor at New York University.

In addition, the EU is investigating complaints that Microsoft doesn’t provide formatting and other information to allow rival products to work with Microsoft Office software including Word and Excel. The commission has fined Microsoft a total of 1.68 billion euros for abusing its market dominance and failing to comply with a 2004 antitrust order. The company is appealing an 899 million-euro fine for not complying with EU orders in the case.